InterDigital Inc (IDCC)

[Gamco]

BlackRock Increases Position in InterDigital (IDCC)
February 01, 2023 — 03:17 pm EST
Written by Fintel Staff for Fintel -

Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 5.12MM shares of InterDigital Inc (IDCC). This represents 17.3% of the company.

In their previous filing dated January 27, 2022 they reported 5.03MM shares and 16.40% of the company, an increase in shares of 1.77% and an increase in total ownership of 0.90% (calculated as current - previous percent ownership).

Analyst Price Forecast Suggests 21.76% Upside

As of January 29, 2023, the average one-year price target for InterDigital is $85.17. The forecasts range from a low of $50.50 to a high of $109.20. The average price target represents an increase of 21.76% from its latest reported closing price of $69.95.

The projected annual revenue for InterDigital is $434MM, a decrease of 3.99%. The projected annual EPS is $2.78, an increase of 1.41%.

Fund Sentiment

There are 542 funds or institutions reporting positions in InterDigital. This is a decrease of 28 owner(s) or 4.91%.

Average portfolio weight of all funds dedicated to US:IDCC is 0.1331%, a decrease of 18.2737%. Total shares owned by institutions decreased in the last three months by 1.27% to 28,152K shares.

What are large shareholders doing?
IJR - iShares Core S&P Small-Cap ETF holds 2,166,928 shares representing 7.30% ownership of the company. In it's prior filing, the firm reported owning 2,158,522 shares, representing an increase of 0.39%. The firm decreased its portfolio allocation in IDCC by 32.26% over the last quarter.

FIL holds 1,161,625 shares representing 3.92% ownership of the company. In it's prior filing, the firm reported owning 1,175,759 shares, representing a decrease of 1.22%. The firm decreased its portfolio allocation in IDCC by 29.02% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 854,979 shares representing 2.88% ownership of the company. In it's prior filing, the firm reported owning 909,494 shares, representing a decrease of 6.38%. The firm decreased its portfolio allocation in IDCC by 34.86% over the last quarter.

Disciplined Growth Investors holds 797,161 shares representing 2.69% ownership of the company. In it's prior filing, the firm reported owning 797,366 shares, representing a decrease of 0.03%. The firm decreased its portfolio allocation in IDCC by 31.39% over the last quarter.

NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 753,060 shares representing 2.54% ownership of the company. In it's prior filing, the firm reported owning 776,672 shares, representing a decrease of 3.14%. The firm decreased its portfolio allocation in IDCC by 32.78% over the last quarter.

InterDigital Declares $0.35 Dividend

InterDigital said on December 2, 2022 that its board of directors declared a regular quarterly dividend of $0.35 per share ($1.40 annualized). Shareholders of record as of January 10, 2023 received the payment on January 25, 2023. Previously, the company paid $0.35 per share.

At the current share price of $69.95 / share, the stock's dividend yield is 2.00%. Looking back five years and taking a sample every week, the average dividend yield has been 2.23%, the lowest has been 1.64%, and the highest has been 4.04%. The standard deviation of yields is 0.38 (n=236).

The current dividend yield is 0.61 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.50. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.
Interdigital Background Information
(This description is provided by the company.)

InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. The Company solves many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.

This story originally appeared on Fintel.

https://www.nasdaq.com/articles/blackrock-increases-position-in-interdigital-idcc