Is InterDigital Stock a Good Investment?
InterDigital Investment Advice | IDCC |
- Examine InterDigital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research InterDigital's leadership team and their track record. Good management can help InterDigital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact InterDigital's business and its evolving consumer preferences.
- Compare InterDigital's performance and market position to its competitors. Analyze how InterDigital is positioned in terms of product offerings, innovation, and market share.
- Check if InterDigital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about InterDigital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in InterDigital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if InterDigital is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine InterDigital Stock
Researching InterDigital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.43. InterDigital recorded earning per share (EPS) of 12.08. The entity last dividend was issued on the 9th of April 2025.
To determine if InterDigital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding InterDigital's research are outlined below:
| InterDigital is unlikely to experience financial distress in the next 2 years | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from simplywall.st: Those who invested in InterDigital five years ago are up 333 |
InterDigital Quarterly Liabilities And Stockholders Equity |
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InterDigital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in InterDigital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to InterDigital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact InterDigital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises InterDigital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-08-08 | 2007-06-30 | -0.1 | -0.09 | 0.01 | 10 | ||
2004-08-09 | 2004-06-30 | 0.03 | 0.02 | -0.01 | 33 | ||
2002-11-12 | 2002-09-30 | -0.1 | -0.11 | -0.01 | 10 | ||
2001-07-31 | 2001-06-30 | -0.06 | -0.05 | 0.01 | 16 | ||
2001-04-26 | 2001-03-31 | -0.03 | -0.04 | -0.01 | 33 | ||
1998-05-07 | 1998-03-31 | 0.05 | 0.04 | -0.01 | 20 | ||
2005-11-03 | 2005-09-30 | 0.14 | 0.12 | -0.02 | 14 | ||
2005-08-04 | 2005-06-30 | 0.05 | 0.07 | 0.02 | 40 |
Know InterDigital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as InterDigital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading InterDigital backward and forwards among themselves. InterDigital's institutional investor refers to the entity that pools money to purchase InterDigital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Shannon River Fund Management Llc | 2024-12-31 | 381.6 K | Reinhart Mahoney Capital Management Inc | 2024-12-31 | 360.2 K | Amvescap Plc. | 2024-12-31 | 327.9 K | Congress Asset Management Company, Llp | 2024-12-31 | 323.1 K | Charles Schwab Investment Management Inc | 2024-12-31 | 308.9 K | T. Rowe Price Associates, Inc. | 2024-12-31 | 299.3 K | Northern Trust Corp | 2024-12-31 | 291.5 K | Bank Of New York Mellon Corp | 2024-12-31 | 284.7 K | Ameriprise Financial Inc | 2024-12-31 | 283.3 K | Blackrock Inc | 2024-12-31 | 4.3 M | Vanguard Group Inc | 2024-12-31 | 3.3 M |
InterDigital's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 5.38 B.Market Cap |
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InterDigital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.24 | 0.25 | |
| Return On Capital Employed | 0.40 | 0.42 | |
| Return On Assets | 0.20 | 0.21 | |
| Return On Equity | 0.42 | 0.44 |
Determining InterDigital's profitability involves analyzing its financial statements and using various financial metrics to determine if InterDigital is a good buy. For example, gross profit margin measures InterDigital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of InterDigital's profitability and make more informed investment decisions.
Please note, the presentation of InterDigital's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, InterDigital's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of InterDigital's management manipulating its earnings.
Evaluate InterDigital's management efficiency
InterDigital has return on total asset (ROA) of 0.1508 % which means that it generated a profit of $0.1508 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.4985 %, meaning that it created $0.4985 on every $100 dollars invested by stockholders. InterDigital's management efficiency ratios could be used to measure how well InterDigital manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.25. The current year's Return On Capital Employed is expected to grow to 0.42. At present, InterDigital's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 96.5 M, whereas Other Current Assets are forecasted to decline to about 78.1 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 33.85 | 35.54 | |
| Tangible Book Value Per Share | 20.78 | 21.82 | |
| Enterprise Value Over EBITDA | 8.90 | 9.70 | |
| Price Book Value Ratio | 5.72 | 10.20 | |
| Enterprise Value Multiple | 8.90 | 9.70 | |
| Price Fair Value | 5.72 | 10.20 | |
| Enterprise Value | 1.5 B | 1.5 B |
InterDigital showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Basic technical analysis of InterDigital Stock
As of the 26th of February, InterDigital retains the Risk Adjusted Performance of 0.0729, market risk adjusted performance of 0.4023, and Downside Deviation of 2.2. InterDigital technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.InterDigital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific InterDigital insiders, such as employees or executives, is commonly permitted as long as it does not rely on InterDigital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases InterDigital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
InterDigital's Outstanding Corporate Bonds
InterDigital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. InterDigital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most InterDigital bonds can be classified according to their maturity, which is the date when InterDigital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAH73 | View | |
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAK03 | View | |
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAJ30 | View | |
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAL85 | View | |
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAN42 | View | |
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAD69 | View | |
| INTERCONTINENTAL EXCHANGE INC Corp BondUS45866FAF18 | View | |
| US458665AS53 Corp BondUS458665AS53 | View |
Understand InterDigital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing InterDigital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0729 | |||
| Market Risk Adjusted Performance | 0.4023 | |||
| Mean Deviation | 1.48 | |||
| Semi Deviation | 1.93 | |||
| Downside Deviation | 2.2 | |||
| Coefficient Of Variation | 1118.55 | |||
| Standard Deviation | 2.67 | |||
| Variance | 7.13 | |||
| Information Ratio | 0.0838 | |||
| Jensen Alpha | 0.2259 | |||
| Total Risk Alpha | 0.2108 | |||
| Sortino Ratio | 0.1016 | |||
| Treynor Ratio | 0.3923 | |||
| Maximum Drawdown | 19.54 | |||
| Value At Risk | (3.17) | |||
| Potential Upside | 2.56 | |||
| Downside Variance | 4.85 | |||
| Semi Variance | 3.73 | |||
| Expected Short fall | (1.55) | |||
| Skewness | 2.82 | |||
| Kurtosis | 19.08 |
| Risk Adjusted Performance | 0.0729 | |||
| Market Risk Adjusted Performance | 0.4023 | |||
| Mean Deviation | 1.48 | |||
| Semi Deviation | 1.93 | |||
| Downside Deviation | 2.2 | |||
| Coefficient Of Variation | 1118.55 | |||
| Standard Deviation | 2.67 | |||
| Variance | 7.13 | |||
| Information Ratio | 0.0838 | |||
| Jensen Alpha | 0.2259 | |||
| Total Risk Alpha | 0.2108 | |||
| Sortino Ratio | 0.1016 | |||
| Treynor Ratio | 0.3923 | |||
| Maximum Drawdown | 19.54 | |||
| Value At Risk | (3.17) | |||
| Potential Upside | 2.56 | |||
| Downside Variance | 4.85 | |||
| Semi Variance | 3.73 | |||
| Expected Short fall | (1.55) | |||
| Skewness | 2.82 | |||
| Kurtosis | 19.08 |
Consider InterDigital's intraday indicators
InterDigital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of InterDigital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
InterDigital Corporate Filings
F4 | 24th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 6th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
InterDigital Stock media impact
Far too much social signal, news, headlines, and media speculation about InterDigital that are available to investors today. That information is available publicly through InterDigital media outlets and privately through word of mouth or via InterDigital internal channels. However, regardless of the origin, that massive amount of InterDigital data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of InterDigital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of InterDigital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to InterDigital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive InterDigital alpha.
InterDigital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards InterDigital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
InterDigital Historical Investor Sentiment
Investor biases related to InterDigital's public news can be used to forecast risks associated with an investment in InterDigital. The trend in average sentiment can be used to explain how an investor holding InterDigital can time the market purely based on public headlines and social activities around InterDigital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
InterDigital's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for InterDigital and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average InterDigital news discussions. The higher the estimate score, the more favorable the investor's outlook on InterDigital.
InterDigital Corporate Management
| James Nolan | Executive VP of Interdigital Solutions | Profile | |
| Eeva Hakoranta | Executive Officer | Profile | |
| Joshua Schmidt | Chief VP | Profile | |
| Eric Cohen | Chief Development Officer | Profile | |
| Ken Kaskoun | Executive Officer | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in InterDigital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade InterDigital Stock refer to our How to Trade InterDigital Stock guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of InterDigital. If investors know InterDigital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about InterDigital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.883 | Dividend Share 1.7 | Earnings Share 12.08 | Revenue Per Share | Quarterly Revenue Growth 1.396 |
The market value of InterDigital is measured differently than its book value, which is the value of InterDigital that is recorded on the company's balance sheet. Investors also form their own opinion of InterDigital's value that differs from its market value or its book value, called intrinsic value, which is InterDigital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because InterDigital's market value can be influenced by many factors that don't directly affect InterDigital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between InterDigital's value and its price, as these two are different measures arrived at by various means. Investors typically determine if InterDigital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, InterDigital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.