InterDigital (IDCC) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of InterDigital (NASDAQ:IDCC) from a buy rating to a hold rating in a report issued on Thursday morning.

According to Zacks, “InterDigital’s global footprint, diversified portfolio and ability to penetrate in different markets are commendable. The acquisition of the patent licensing business of Technicolor is likely to provide it with an enhanced portfolio of video technologies while opening up new opportunities in the consumer electronics market. The company’s commitment toward licensing its broad portfolio of technologies to wireless terminal equipment makers, allowing it to expand its core market, is noteworthy. The stock has outperformed the industry in the past three months on an average. However, the trade restrictions imposed on the sale of communication equipment and technology solutions to Chinese firms are likely to hurt its overall performance. Decline in return on capital despite rise in capital spending and capitalized patent costs is a concern for InterDigital. The company’s policy of acquiring companies adds to the integration risks.”

A number of other research firms have also weighed in on IDCC. BidaskClub raised shares of InterDigital from a strong sell rating to a sell rating in a report on Wednesday, January 16th. B. Riley set a $90.00 price target on shares of InterDigital and gave the company a buy rating in a research note on Wednesday, December 12th. ValuEngine upgraded shares of InterDigital from a hold rating to a buy rating in a research note on Thursday, November 1st. TheStreet upgraded shares of InterDigital from a c+ rating to a b- rating in a research report on Monday, December 3rd. Finally, Sidoti started coverage on shares of InterDigital in a research report on Thursday, January 3rd. They set a buy rating for the company. One investment analyst has rated the stock with a sell rating, one has given a hold rating and six have assigned a buy rating to the company’s stock. InterDigital presently has a consensus rating of Buy and a consensus target price of $93.20.



NASDAQ IDCC opened at $72.70 on Thursday. InterDigital has a 52-week low of $62.34 and a 52-week high of $85.85. The company has a quick ratio of 4.06, a current ratio of 4.06 and a debt-to-equity ratio of 0.31. The stock has a market cap of $2.46 billion, a PE ratio of 12.00, a P/E/G ratio of 2.94 and a beta of 1.23.

The company also recently declared a quarterly dividend, which was paid on Wednesday, January 23rd. Shareholders of record on Wednesday, January 9th were paid a dividend of $0.35 per share. The ex-dividend date was Tuesday, January 8th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.93%. InterDigital’s dividend payout ratio is currently 23.10%.

In related news, CEO William J. Merritt sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, January 28th. The stock was sold at an average price of $71.62, for a total transaction of $1,074,300.00. Following the completion of the transaction, the chief executive officer now directly owns 156,549 shares in the company, valued at approximately $11,212,039.38. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 2.00% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the company. Quantbot Technologies LP bought a new position in InterDigital in the 3rd quarter valued at $1,643,000. Vanguard Group Inc lifted its stake in shares of InterDigital by 2.5% during the 3rd quarter. Vanguard Group Inc now owns 3,239,611 shares of the Wireless communications provider’s stock worth $259,169,000 after purchasing an additional 79,520 shares during the last quarter. Richard Bernstein Advisors LLC lifted its stake in shares of InterDigital by 19.5% during the 3rd quarter. Richard Bernstein Advisors LLC now owns 71,137 shares of the Wireless communications provider’s stock worth $5,691,000 after purchasing an additional 11,633 shares during the last quarter. Morgan Stanley lifted its stake in shares of InterDigital by 14.9% during the 3rd quarter. Morgan Stanley now owns 362,733 shares of the Wireless communications provider’s stock worth $29,019,000 after purchasing an additional 47,102 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in InterDigital by 2.5% in the third quarter. Vanguard Group Inc. now owns 3,239,611 shares of the Wireless communications provider’s stock valued at $259,169,000 after buying an additional 79,520 shares during the last quarter. 77.52% of the stock is currently owned by institutional investors and hedge funds.

InterDigital Company Profile

InterDigital, Inc designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks.

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