Zacks Research Raises Earnings Estimates for InterDigital

InterDigital, Inc. (NASDAQ:IDCC) – Equities researchers at Zacks Research increased their FY2025 earnings estimates for InterDigital in a research report issued to clients and investors on Monday, December 22nd. Zacks Research analyst Team now expects that the Wireless communications provider will post earnings per share of $13.59 for the year, up from their previous estimate of $13.53. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for InterDigital’s current full-year earnings is $9.21 per share. Zacks Research also issued estimates for InterDigital’s Q4 2025 earnings at $1.21 EPS, Q1 2026 earnings at $1.98 EPS, Q3 2026 earnings at $2.19 EPS, FY2026 earnings at $7.39 EPS and Q2 2027 earnings at $1.96 EPS.

Other analysts have also issued research reports about the stock. William Blair reiterated an “outperform” rating on shares of InterDigital in a research note on Monday, September 22nd. UBS Group set a $425.00 price objective on shares of InterDigital in a research report on Monday, December 1st. Weiss Ratings reiterated a “buy (a-)” rating on shares of InterDigital in a research note on Monday. Roth Capital lifted their target price on InterDigital from $270.00 to $350.00 and gave the company a “buy” rating in a research note on Friday, September 12th. Finally, Jefferies Financial Group set a $475.00 target price on InterDigital and gave the company a “buy” rating in a report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $416.67.

InterDigital Price Performance

Shares of NASDAQ IDCC opened at $328.25 on Wednesday. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $8.45 billion, a price-to-earnings ratio of 22.15 and a beta of 1.54. InterDigital has a twelve month low of $169.58 and a twelve month high of $412.60. The business has a 50 day simple moving average of $356.05 and a 200-day simple moving average of $302.12.

InterDigital (NASDAQ:IDCC) last announced its quarterly earnings data on Thursday, October 30th. The Wireless communications provider reported $1.93 earnings per share for the quarter, beating the consensus estimate of $1.79 by $0.14. InterDigital had a return on equity of 51.89% and a net margin of 53.50%.The firm had revenue of $164.68 million during the quarter, compared to analyst estimates of $153.43 million. During the same period in the previous year, the company earned $1.14 earnings per share. InterDigital’s quarterly revenue was up 28.0% on a year-over-year basis. InterDigital has set its FY 2025 guidance at 14.570-14.830 EPS and its Q4 2025 guidance at 1.380-1.630 EPS.

Institutional Investors Weigh In On InterDigital

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Root Financial Partners LLC acquired a new stake in shares of InterDigital in the 3rd quarter worth approximately $30,000. Aster Capital Management DIFC Ltd lifted its position in InterDigital by 186.8% in the third quarter. Aster Capital Management DIFC Ltd now owns 109 shares of the Wireless communications provider’s stock worth $38,000 after purchasing an additional 71 shares during the period. Twin Peaks Wealth Advisors LLC acquired a new stake in InterDigital in the second quarter worth approximately $28,000. Spire Wealth Management bought a new position in InterDigital during the 3rd quarter valued at $49,000. Finally, Global Wealth Strategies & Associates acquired a new position in shares of InterDigital during the 2nd quarter valued at $38,000. 99.83% of the stock is currently owned by institutional investors.

Insider Activity

In other InterDigital news, CTO Rajesh Pankaj sold 1,000 shares of InterDigital stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $375.31, for a total transaction of $375,310.00. Following the sale, the chief technology officer owned 64,157 shares of the company’s stock, valued at $24,078,763.67. The trade was a 1.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Joshua D. Schmidt sold 466 shares of the business’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $395.63, for a total value of $184,363.58. Following the transaction, the insider owned 27,928 shares of the company’s stock, valued at $11,049,154.64. This trade represents a 1.64% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 7,466 shares of company stock valued at $2,642,279. Insiders own 2.80% of the company’s stock.

InterDigital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 28th. Shareholders of record on Wednesday, January 14th will be paid a $0.70 dividend. The ex-dividend date is Wednesday, January 14th. This represents a $2.80 annualized dividend and a dividend yield of 0.9%. InterDigital’s dividend payout ratio (DPR) is presently 18.89%.

Key Stores Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Market and media pieces are spotlighting IDCC as a watchlist candidate and discussing potential upside, which can attract buyer interest and momentum flows. Is Now The Time To Put InterDigital On Your Watchlist?
• Positive Sentiment: Several sell‑side firms still carry bullish price targets (e.g., Jefferies $475, UBS $425, Roth raised target to $350) and the consensus remains a “Buy” — a supportive backdrop for share price recovery if licensing revenue stays strong.
• Positive Sentiment: InterDigital recently declared a quarterly dividend ($0.70 per share), signaling cash return to shareholders and supporting investor sentiment for income‑oriented holders.
• Neutral Sentiment: Forbes and other coverage are debating whether IDCC can rally further; these pieces frame the debate but don’t add new fundamental data — useful for context rather than a catalyst. Can IDCC Stock Rally Again?
• Neutral Sentiment: Reported short interest data is effectively zero/invalid (0 shares, NaN change) and not providing a clear signal on positioning or squeeze risk.
• Negative Sentiment: Zacks Research has lowered multiple forward quarterly and FY2026–FY2027 EPS estimates (and moved to a “Hold”), flagging weaker near‑term earnings expectations — a direct negative to sentiment and valuation multiples. Q4 EPS Estimates for InterDigital Lowered by Zacks Research
• Negative Sentiment: Insider selling: a director disclosed selling 1,250 shares at ~$331 on Dec. 23 — insiders trimming positions can be read negatively by investors focused on insider flows. SEC Form 4
• Negative Sentiment: Sequential estimate cuts for 2026–2027 (reported by Zacks/aggregators) increase the risk that forward guidance or royalty trends soften, which would pressure the current P/E multiple if revenue or margins slow.

InterDigital Company Profile

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.