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

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 InterDigital with an enhanced portfolio of video technologies while opening up new opportunities in the consumer electronics market. The company remains committed to pursue strategic acquisitions in order to drive its product portfolio and boost organic growth. It has a solid earnings history, beating estimates all through in the trailing four quarters. However, the stock has underperformed the industry on an average in the past year. The ongoing tensions between the United States and China due to trade restrictions imposed on the sale of communication equipment and technology solutions to Chinese firms are likely to hurt the overall performance. High R&D costs and integration risks also remain headwinds for the company.”

Several other equities research analysts also recently issued reports on IDCC. ValuEngine downgraded shares of InterDigital from a buy rating to a hold rating in a research report on Friday, October 12th. TheStreet upgraded shares of InterDigital from a c+ rating to a b- rating in a research report on Monday, December 3rd. B. Riley set a $90.00 price objective on shares of InterDigital and gave the stock a buy rating in a research report on Wednesday, December 12th. Sidoti began coverage on shares of InterDigital in a research report on Thursday, January 3rd. They set a buy rating for the company. Finally, BidaskClub downgraded shares of InterDigital from a sell rating to a strong sell rating in a research report on Thursday, September 20th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and six have given a buy rating to the company. InterDigital presently has a consensus rating of Buy and a consensus target price of $93.60.

InterDigital stock opened at $69.70 on Monday. InterDigital has a 52 week low of $62.34 and a 52 week high of $85.85. The company has a debt-to-equity ratio of 0.31, a current ratio of 4.06 and a quick ratio of 4.06. The stock has a market cap of $2.33 billion, a P/E ratio of 11.50, a price-to-earnings-growth ratio of 2.78 and a beta of 1.23.

InterDigital (NASDAQ:IDCC) last posted its quarterly earnings results on Thursday, November 1st. The Wireless communications provider reported $0.60 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.36. InterDigital had a return on equity of 17.50% and a net margin of 26.19%. The business had revenue of $75.08 million during the quarter, compared to analysts’ expectations of $72.59 million. During the same quarter last year, the company posted $1.00 earnings per share. InterDigital’s quarterly revenue was down 22.9% on a year-over-year basis. As a group, sell-side analysts predict that InterDigital will post 2.02 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 23rd. Stockholders of record on Wednesday, January 9th will be given a $0.35 dividend. The ex-dividend date is Tuesday, January 8th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.01%. InterDigital’s payout ratio is 23.10%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd raised its position in shares of InterDigital by 15.9% in the third quarter. Dynamic Technology Lab Private Ltd now owns 6,437 shares of the Wireless communications provider’s stock valued at $515,000 after buying an additional 881 shares in the last quarter. American International Group Inc. raised its position in shares of InterDigital by 1.4% in the third quarter. American International Group Inc. now owns 93,096 shares of the Wireless communications provider’s stock valued at $7,448,000 after buying an additional 1,262 shares in the last quarter. Juncture Wealth Strategies LLC raised its position in shares of InterDigital by 36.3% in the third quarter. Juncture Wealth Strategies LLC now owns 4,938 shares of the Wireless communications provider’s stock valued at $395,000 after buying an additional 1,315 shares in the last quarter. Pacer Advisors Inc. raised its position in shares of InterDigital by 12.5% in the third quarter. Pacer Advisors Inc. now owns 12,370 shares of the Wireless communications provider’s stock valued at $990,000 after buying an additional 1,376 shares in the last quarter. Finally, HL Financial Services LLC raised its position in shares of InterDigital by 17.5% in the third quarter. HL Financial Services LLC now owns 9,365 shares of the Wireless communications provider’s stock valued at $750,000 after buying an additional 1,398 shares in the last quarter. Institutional investors own 75.08% of the company’s stock.

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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Analyst Recommendations for InterDigital (NASDAQ:IDCC)

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