InterDigital (NASDAQ:IDCC) Trading 7.8% Higher - Here's Why

InterDigital, Inc. (NASDAQ:IDCC - Get Free Report)'s share price rose 7.8% during trading on Friday . The stock traded as high as $163.54 and last traded at $162.16. Approximately 309,495 shares changed hands during trading, a decline of 32% from the average daily volume of 457,789 shares. The stock had previously closed at $150.44.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on IDCC. StockNews.com upgraded InterDigital from a "hold" rating to a "buy" rating in a research report on Tuesday, October 15th. Roth Mkm raised their target price on InterDigital from $146.00 to $160.00 and gave the stock a "buy" rating in a report on Wednesday, September 11th.

InterDigital Stock Up 10.1 %

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 firm's fifty day moving average price is $142.84 and its 200-day moving average price is $126.06. The company has a market cap of $4.16 billion, a price-to-earnings ratio of 16.67, a price-to-earnings-growth ratio of 0.93 and a beta of 1.39.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its earnings results on Thursday, August 1st. The Wireless communications provider reported $4.20 earnings per share for the quarter, topping the consensus estimate of $0.43 by $3.77. InterDigital had a return on equity of 44.57% and a net margin of 37.99%. The firm had revenue of $223.49 million for the quarter, compared to analyst estimates of $95.63 million. Sell-side analysts predict that InterDigital, Inc. will post 9.06 earnings per share for the current year.

InterDigital Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 23rd. Stockholders of record on Wednesday, October 9th were issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 1.09%. The ex-dividend date of this dividend was Wednesday, October 9th. This is a boost from InterDigital's previous quarterly dividend of $0.40. InterDigital's payout ratio is 18.11%.

Insider Buying and Selling

In other InterDigital news, CTO Rajesh Pankaj sold 700 shares of the firm's stock in a transaction that occurred on Monday, October 7th. The shares were sold at an average price of $142.78, for a total transaction of $99,946.00. Following the sale, the chief technology officer now directly owns 54,984 shares in the company, valued at approximately $7,850,615.52. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. In other news, CTO Rajesh Pankaj sold 700 shares of InterDigital stock in a transaction that occurred on Monday, October 7th. The shares were sold at an average price of $142.78, for a total value of $99,946.00. Following the sale, the chief technology officer now directly owns 54,984 shares in the company, valued at $7,850,615.52. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John A. Kritzmacher sold 2,500 shares of the company's stock in a transaction dated Friday, September 20th. The stock was 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. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 5,205 shares of company stock valued at $716,218. 2.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On InterDigital

Institutional investors and hedge funds have recently made changes to their positions in the company. Assetmark Inc. raised its position in shares of InterDigital by 5.9% in the third quarter. Assetmark Inc. now owns 18,977 shares of the Wireless communications provider's stock valued at $2,688,000 after buying an additional 1,060 shares in the last quarter. CWA Asset Management Group LLC bought a new stake in shares of InterDigital during the 3rd quarter valued at $1,007,000. Leavell Investment Management Inc. acquired a new stake in shares of InterDigital during the 3rd quarter worth $232,000. Olympiad Research LP bought a new position in shares of InterDigital in the third quarter worth $475,000. Finally, Asset Management One Co. Ltd. lifted its position in InterDigital by 5.4% during the third quarter. Asset Management One Co. Ltd. now owns 25,450 shares of the Wireless communications provider's stock worth $3,604,000 after purchasing an additional 1,299 shares during the period. Institutional investors and hedge funds own 99.83% of the company's stock.

About InterDigital

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.