InterDigital (NASDAQ:IDCC) Trading 7.8% Higher – Should You Buy?

Shares of InterDigital, Inc. (NASDAQ:IDCC) shot up 7.8% during mid-day trading on Friday . The stock traded as high as $163.54 and last traded at $162.16. 309,495 shares were traded during mid-day trading, a decline of 32% from the average session volume of 457,789 shares. The stock had previously closed at $150.44.

Wall Street Analyst Weigh In

IDCC has been the subject of a number of recent analyst reports. Roth Mkm upped their price objective on shares of InterDigital from $146.00 to $160.00 and gave the company a “buy” rating in a research report on Wednesday, September 11th. StockNews.com upgraded shares of InterDigital from a “hold” rating to a “buy” rating in a research report on Tuesday, October 15th.

InterDigital Stock Performance

The stock’s 50 day moving average price is $141.90 and its 200 day moving average price is $125.41. The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $4.12 billion, a price-to-earnings ratio of 15.97, a P/E/G ratio of 0.93 and a beta of 1.39.

InterDigital (NASDAQ:IDCC) last posted its quarterly earnings data on Thursday, August 1st. The Wireless communications provider reported $4.20 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $3.77. InterDigital had a net margin of 37.99% and a return on equity of 44.57%. The company had revenue of $223.49 million during the quarter, compared to the consensus estimate of $95.63 million. Analysts expect that InterDigital, Inc. will post 9.06 earnings per share for the current year.

InterDigital Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 23rd. Shareholders of record on Wednesday, October 9th were issued a $0.45 dividend. This is a boost from InterDigital’s previous quarterly dividend of $0.40. This represents a $1.80 annualized dividend and a yield of 1.10%. The ex-dividend date of this dividend was Wednesday, October 9th. InterDigital’s dividend payout ratio is currently 18.11%.

Insider Transactions at InterDigital

In other news, Director Derek K. Aberle sold 2,005 shares of the firm’s stock in a transaction that occurred on Monday, August 19th. The shares were sold at an average price of $134.40, for a total transaction of $269,472.00. Following the transaction, the director now directly owns 7,639 shares of the company’s stock, valued at approximately $1,026,681.60. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other InterDigital news, Director John A. Kritzmacher sold 2,500 shares of the firm’s stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $138.72, for a total value of $346,800.00. Following the sale, the director now owns 20,279 shares in the company, valued at $2,813,102.88. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Derek K. Aberle sold 2,005 shares of the firm’s stock in a transaction that occurred on Monday, August 19th. The shares were sold at an average price of $134.40, for a total transaction of $269,472.00. Following the completion of the sale, the director now owns 7,639 shares in the company, valued at $1,026,681.60. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 5,205 shares of company stock valued at $716,218. 2.30% of the stock is currently owned by company insiders.

Institutional Trading of InterDigital

Hedge funds have recently added to or reduced their stakes in the stock. V Square Quantitative Management LLC acquired a new position in shares of InterDigital during the third quarter worth $26,000. 1620 Investment Advisors Inc. bought a new position in InterDigital during the second quarter worth $29,000. GAMMA Investing LLC raised its stake in InterDigital by 50.8% during the second quarter. GAMMA Investing LLC now owns 368 shares of the Wireless communications provider’s stock worth $43,000 after buying an additional 124 shares during the last quarter. Nisa Investment Advisors LLC raised its stake in InterDigital by 38.0% during the second quarter. Nisa Investment Advisors LLC now owns 396 shares of the Wireless communications provider’s stock worth $46,000 after buying an additional 109 shares during the last quarter. Finally, Palisade Asset Management LLC bought a new position in InterDigital during the first quarter worth $64,000. Institutional investors and hedge funds own 99.83% of the company’s stock.

InterDigital Company Profile

InterDigital, Inc operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.