Lawrence Liren Chen, the Chief Executive Officer of InterDigital, Inc. (NASDAQ: IDCC), sold 2,975 shares of the company on January 20, 2024, for a total value of $903,715.75. This transaction occurred at an average price of $303.77 per share. Following this sale, Chen retains ownership of 162,010 shares, valued at approximately $49,213,777.70, marking a 1.80% decrease in his holdings. The details of the trade were made public through a filing with the Securities and Exchange Commission (SEC).
InterDigital’s stock demonstrated notable activity following the CEO’s sale. On the following trading day, shares increased by $7.11, reaching $332.99. During this session, a total of 273,841 shares exchanged hands, slightly below the average volume of 287,230 shares. Currently, InterDigital maintains a market capitalization of $8.57 billion and has a price-to-earnings (P/E) ratio of 22.47. The company’s debt-to-equity ratio stands at 0.02, with both current and quick ratios at 1.89.
Dividend Announcement and Analyst Ratings
InterDigital has also announced a quarterly dividend of $0.70 per share, scheduled for payment on January 28, 2024. Stockholders on record by January 14, 2024 will receive this dividend, which reflects an annualized total of $2.80 and a dividend yield of 0.8%. The company’s dividend payout ratio (DPR) is 18.89%.
Recent evaluations from various research firms have provided mixed insights into InterDigital’s stock. On November 21, 2023, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating. Conversely, Jefferies Financial Group has set a price objective of $475.00 and assigned a “buy” rating. Additionally, Weiss Ratings downgraded its rating from “buy (a-)” to “buy (b+)” while UBS Group established a target price of $425.00. Overall, four analysts have rated InterDigital as a “buy,” while one has issued a “hold” rating. According to MarketBeat.com, the average target price stands at $416.67, indicating a consensus rating of “Moderate Buy.”
Institutional Holdings and Market Position
Several hedge funds have recently adjusted their positions in InterDigital. During the third quarter, Root Financial Partners LLC initiated a new holding valued at $30,000. Meanwhile, Aster Capital Management DIFC Ltd significantly increased its stake by 186.8%, now owning 109 shares worth $38,000. Other firms, including Twin Peaks Wealth Advisors LLC and Spire Wealth Management, have also acquired new positions, contributing to a scenario where approximately 99.83% of the stock is held by hedge funds and institutional investors.
InterDigital, Inc. is recognized for its innovations in wireless communications and video technology. The company specializes in designing and licensing essential technologies for 3G, 4G LTE, and 5G networks, as well as video compression technologies. By focusing on the creation of core intellectual property rather than device manufacturing, InterDigital serves a global clientele that includes smartphone manufacturers and telecommunications operators.
