InterDigital (NASDAQ:IDCC) Shares Gap Up - Should You Buy?

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $182.50, but opened at $200.00. InterDigital shares last traded at $201.46, with a volume of 75,687 shares traded.

Analysts Set New Price Targets

Separately, StockNews.com cut InterDigital from a "buy" rating to a "hold" rating in a research note on Monday, November 4th.

InterDigital Stock Performance

The company has a quick ratio of 1.62, a current ratio of 1.70 and a debt-to-equity ratio of 0.08. The stock has a fifty day moving average price of $188.74 and a 200-day moving average price of $163.43. The firm has a market cap of $5.25 billion, a price-to-earnings ratio of 17.20, a price-to-earnings-growth ratio of 2.41 and a beta of 1.44.

InterDigital Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 23rd. Shareholders of record on Wednesday, April 9th will be given a dividend of $0.60 per share. This is a positive change from InterDigital's previous quarterly dividend of $0.45. This represents a $2.40 annualized dividend and a yield of 1.16%. The ex-dividend date of this dividend is Wednesday, April 9th. InterDigital's dividend payout ratio is presently 14.95%.

Insider Buying and Selling

In related news, insider Joshua D. Schmidt sold 140 shares of the business's stock in a transaction that occurred on Tuesday, November 19th. The stock was sold at an average price of $182.19, for a total transaction of $25,506.60. Following the transaction, the insider now directly owns 24,138 shares of the company's stock, valued at approximately $4,397,702.22. The trade was a 0.58 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Lawrence Liren Chen sold 5,891 shares of the business's stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $195.34, for a total transaction of $1,150,747.94. Following the transaction, the chief executive officer now directly owns 164,543 shares in the company, valued at approximately $32,141,829.62. The trade was a 3.46 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 13,322 shares of company stock worth $2,562,751 in the last three months. Corporate insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On InterDigital

A number of institutional investors have recently added to or reduced their stakes in IDCC. Sanctuary Advisors LLC acquired a new stake in shares of InterDigital in the 2nd quarter valued at about $596,000. SG Americas Securities LLC bought a new position in shares of InterDigital in the third quarter worth $417,000. Handelsbanken Fonder AB boosted its holdings in shares of InterDigital by 29.5% in the third quarter. Handelsbanken Fonder AB now owns 7,030 shares of the Wireless communications provider's stock valued at $996,000 after acquiring an additional 1,600 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of InterDigital by 81.3% in the third quarter. GAMMA Investing LLC now owns 667 shares of the Wireless communications provider's stock valued at $94,000 after buying an additional 299 shares during the period. Finally, CWM LLC boosted its position in shares of InterDigital by 34.0% during the 3rd quarter. CWM LLC now owns 851 shares of the Wireless communications provider's stock valued at $121,000 after purchasing an additional 216 shares in the last quarter. 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.