InterDigital, Inc. (IDCC) Sees Unusually-High Trading Volume After Dividend Announcement

InterDigital, Inc. (NASDAQ:IDCC) saw strong trading volume on Friday after the company announced a dividend. 821,724 shares changed hands during trading, an increase of 182% from the previous session’s volume of 291,425 shares.The stock last traded at $74.65 and had previously closed at $70.25.

The newly announced dividend which will be paid on Wednesday, October 25th. Investors of record on Wednesday, October 11th will be paid a $0.35 dividend. The ex-dividend date of this dividend is Tuesday, October 10th. This represents a $1.40 dividend on an annualized basis and a yield of 1.88%. This is a boost from InterDigital’s previous quarterly dividend of $0.30. InterDigital’s dividend payout ratio (DPR) is currently 13.00%.

A number of equities analysts recently weighed in on the company. ValuEngine cut InterDigital from a “strong-buy” rating to a “buy” rating in a research note on Friday, August 11th. Sidoti raised InterDigital from a “neutral” rating to a “buy” rating in a research note on Tuesday, August 8th. B. Riley reissued a “buy” rating and issued a $100.00 price target on shares of InterDigital in a research note on Saturday, July 29th. Zacks Investment Research raised InterDigital from a “hold” rating to a “buy” rating and set a $77.00 price target on the stock in a research note on Friday, August 18th. Finally, BidaskClub cut InterDigital from a “sell” rating to a “strong sell” rating in a research note on Wednesday, July 12th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and four have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $87.75.

The firm has a market cap of $2.59 billion, a P/E ratio of 8.14 and a beta of 0.95. The firm’s 50-day moving average is $70.74 and its 200-day moving average is $79.95.

InterDigital (NASDAQ:IDCC) last released its earnings results on Thursday, July 27th. The Wireless communications provider reported $1.46 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.05. InterDigital had a return on equity of 44.58% and a net margin of 45.92%. The firm had revenue of $135.78 million for the quarter, compared to analyst estimates of $133.69 million. During the same quarter in the prior year, the firm posted $1.14 earnings per share. The company’s quarterly revenue was up 78.8% on a year-over-year basis. Equities analysts forecast that InterDigital, Inc. will post $3.61 earnings per share for the current year.

InterDigital announced that its Board of Directors has initiated a stock repurchase program on Thursday, September 14th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the Wireless communications provider to purchase up to 4.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

In other InterDigital news, EVP James J. Nolan sold 2,294 shares of the stock in a transaction dated Monday, August 7th. The stock was sold at an average price of $71.30, for a total value of $163,562.20. Following the completion of the sale, the executive vice president now directly owns 54,042 shares in the company, valued at $3,853,194.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Scott A. Mcquilkin sold 500 shares of the stock in a transaction dated Friday, June 30th. The stock was sold at an average price of $79.15, for a total value of $39,575.00. Following the completion of the sale, the executive vice president now owns 79,768 shares of the company’s stock, valued at $6,313,637.20. The disclosure for this sale can be found here. 1.90% of the stock is owned by corporate insiders.

Several institutional investors have recently made changes to their positions in the business. Cambridge Investment Research Advisors Inc. increased its holdings in shares of InterDigital by 0.5% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 2,796 shares of the Wireless communications provider’s stock worth $216,000 after acquiring an additional 15 shares in the last quarter. Tyers Asset Management LLC increased its holdings in shares of InterDigital by 2.8% in the first quarter. Tyers Asset Management LLC now owns 1,168 shares of the Wireless communications provider’s stock worth $101,000 after acquiring an additional 32 shares in the last quarter. Elkfork Partners LLC increased its holdings in shares of InterDigital by 2.8% in the first quarter. Elkfork Partners LLC now owns 1,606 shares of the Wireless communications provider’s stock worth $139,000 after acquiring an additional 44 shares in the last quarter. Nisa Investment Advisors LLC increased its holdings in shares of InterDigital by 0.9% in the second quarter. Nisa Investment Advisors LLC now owns 5,760 shares of the Wireless communications provider’s stock worth $461,000 after acquiring an additional 50 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its holdings in shares of InterDigital by 1.0% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,062 shares of the Wireless communications provider’s stock worth $391,000 after acquiring an additional 51 shares in the last quarter. Institutional investors own 70.97% of the company’s stock.

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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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