Q1 EPS Estimates for InterDigital Lowered by Zacks Research

InterDigital, Inc. (NASDAQ:IDCC) – Stock analysts at Zacks Research lowered their Q1 2027 earnings estimates for InterDigital in a report issued on Monday, July 13th. Zacks Research analyst Team now anticipates that the Wireless communications provider will post earnings per share of $1.85 for the quarter, down from their prior forecast of $1.86. The consensus estimate for InterDigital’s current full-year earnings is $7.41 per share. Zacks Research also issued estimates for InterDigital’s FY2028 earnings at $8.88 EPS.

InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 EPS for the quarter, topping the consensus estimate of $2.54 by $0.03. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. The company had revenue of $205.42 million during the quarter, compared to the consensus estimate of $196.85 million. During the same period in the previous year, the firm posted $3.45 earnings per share. The firm’s revenue for the quarter was down 2.4% on a year-over-year basis. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS.

Several other analysts also recently commented on IDCC. Jefferies Financial Group reissued a “buy” rating on shares of InterDigital in a research note on Wednesday, March 18th. Weiss Ratings cut InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, June 12th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $416.67.

InterDigital Price Performance

IDCC stock opened at $265.48 on Wednesday. The company has a market capitalization of $6.86 billion, a P/E ratio of 25.00 and a beta of 1.42. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.88 and a current ratio of 1.88. InterDigital has a 52-week low of $213.06 and a 52-week high of $412.60. The business has a 50-day simple moving average of $270.91 and a two-hundred day simple moving average of $315.77.

Institutional Investors Weigh In On InterDigital

Several large investors have recently added to or reduced their stakes in IDCC. Price T Rowe Associates Inc. MD increased its stake in shares of InterDigital by 62.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider’s stock worth $707,477,000 after purchasing an additional 854,845 shares in the last quarter. Geode Capital Management LLC grew its position in shares of InterDigital by 18.6% in the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider’s stock valued at $251,250,000 after purchasing an additional 123,686 shares in the last quarter. Reinhart Partners LLC. raised its stake in shares of InterDigital by 9.0% during the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider’s stock valued at $130,359,000 after purchasing an additional 38,115 shares during the period. Invesco Ltd. boosted its stake in InterDigital by 24.8% in the 4th quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider’s stock worth $143,546,000 after purchasing an additional 89,647 shares during the period. Finally, Norges Bank purchased a new position in InterDigital during the 4th quarter valued at about $128,918,000. Hedge funds and other institutional investors own 99.83% of the company’s stock.

Insider Buying and Selling at InterDigital

In other news, Director Derek K. Aberle sold 522 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $144,406.08. Following the completion of the sale, the director owned 7,620 shares in the company, valued at $2,107,996.80. This trade represents a 6.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of the company’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $286.00, for a total value of $429,000.00. Following the completion of the transaction, the chief technology officer owned 67,976 shares in the company, valued at approximately $19,441,136. The trade was a 2.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 5,872 shares of company stock valued at $1,654,159 in the last three months. 3.50% of the stock is owned by corporate insiders.

InterDigital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th will be given a dividend of $0.70 per share. The ex-dividend date is Wednesday, July 8th. This represents a $2.80 annualized dividend and a yield of 1.1%. InterDigital’s dividend payout ratio is presently 26.37%.

About InterDigital

InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company’s principal services include patent licensing, technology evaluation and consulting.