InterDigital (IDCC) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research downgraded shares of InterDigital (NASDAQ:IDCC) from a hold rating to a sell rating in a research report report published on Wednesday morning.

According to Zacks, “InterDigital develops fundamental wireless technologies that are at the core of mobile devices, networks, and services worldwide. Since their founding in 1972, their engineers have designed and developed a wide range of innovations that are used in digital cellular and wireless products and networks, including 2G, 3G, 4G and IEEE 802-related products and networks. They solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading wireless companies. “

IDCC has been the topic of several other reports. B. Riley reaffirmed a buy rating and issued a $100.00 price target on shares of InterDigital in a research report on Monday, December 4th. ValuEngine raised InterDigital from a hold rating to a buy rating in a research report on Thursday, November 16th. Finally, BidaskClub raised InterDigital from a strong sell rating to a sell rating in a research report on Thursday, January 4th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus price target of $90.00.

InterDigital (NASDAQ:IDCC) traded up $1.40 during midday trading on Wednesday, reaching $80.90. The company’s stock had a trading volume of 401,100 shares, compared to its average volume of 285,417. InterDigital has a one year low of $67.55 and a one year high of $102.30. The company has a current ratio of 3.22, a quick ratio of 3.22 and a debt-to-equity ratio of 0.34. The company has a market capitalization of $2,810.00, a price-to-earnings ratio of 11.17 and a beta of 0.97.

InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, October 26th. The Wireless communications provider reported $1.00 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.66 by $0.34. The company had revenue of $97.30 million for the quarter, compared to analyst estimates of $94.13 million. InterDigital had a return on equity of 32.77% and a net margin of 42.94%. The business’s revenue was down 53.3% compared to the same quarter last year. During the same period last year, the company earned $2.99 earnings per share. analysts forecast that InterDigital will post 5.72 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 24th. Stockholders of record on Wednesday, January 10th will be given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 1.73%. The ex-dividend date is Tuesday, January 9th. InterDigital’s dividend payout ratio is currently 19.34%.

InterDigital announced that its Board of Directors has initiated a stock buyback plan on Thursday, September 14th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the Wireless communications provider to purchase up to 4.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its stock is undervalued.

In other news, EVP James J. Nolan sold 5,020 shares of the firm’s stock in a transaction dated Monday, November 27th. The stock was sold at an average price of $75.00, for a total value of $376,500.00. Following the sale, the executive vice president now directly owns 49,063 shares of the company’s stock, valued at $3,679,725. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Jannie K. Lau sold 2,561 shares of the firm’s stock in a transaction dated Monday, October 30th. The shares were sold at an average price of $72.31, for a total value of $185,185.91. Following the completion of the sale, the executive vice president now directly owns 19,496 shares in the company, valued at $1,409,755.76. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 8,581 shares of company stock worth $638,186. 1.90% of the stock is currently owned by company insiders.

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in InterDigital by 1.4% during the second quarter. Vanguard Group Inc. now owns 2,865,421 shares of the Wireless communications provider’s stock worth $221,497,000 after buying an additional 40,030 shares in the last quarter. State Street Corp grew its position in InterDigital by 8.2% during the second quarter. State Street Corp now owns 1,199,522 shares of the Wireless communications provider’s stock worth $92,724,000 after buying an additional 91,286 shares in the last quarter. Dimensional Fund Advisors LP grew its position in InterDigital by 6.7% during the third quarter. Dimensional Fund Advisors LP now owns 985,849 shares of the Wireless communications provider’s stock worth $72,708,000 after buying an additional 62,291 shares in the last quarter. Northern Trust Corp grew its position in InterDigital by 2.7% during the second quarter. Northern Trust Corp now owns 614,152 shares of the Wireless communications provider’s stock worth $47,473,000 after buying an additional 16,034 shares in the last quarter. Finally, Renaissance Technologies LLC grew its position in InterDigital by 20.8% during the second quarter. Renaissance Technologies LLC now owns 574,574 shares of the Wireless communications provider’s stock worth $44,415,000 after buying an additional 98,874 shares in the last quarter. 72.88% of the stock is currently owned by institutional investors and hedge funds.

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About InterDigital

InterDigital, Inc designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc (Hillcrest Labs) subsidiary, sensor and sensor fusion technology.

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