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How to buy InterDigital stock | $61.05

Own InterDigital stock in just a few minutes.

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InterDigital, Inc is a telecom services business based in the US. InterDigital shares (IDCC) are listed on the NASDAQ and all prices are listed in US Dollars. InterDigital employs 487 staff and has a trailing 12-month revenue of around USD$355.4 million.

How to buy shares in InterDigital

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for InterDigital. Find the stock by name or ticker symbol: IDCC. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until InterDigital reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$61.05, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of InterDigital, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of InterDigital. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

InterDigital share price

Use our graph to track the performance of IDCC stocks over time.

InterDigital shares at a glance

Information last updated 2020-10-20.
Latest market close USD$61.05
52-week range USD$31.04 - USD$66.165
50-day moving average USD$59.0754
200-day moving average USD$57.0818
Wall St. target price USD$96.2
PE ratio 48.3089
Dividend yield USD$1.4 (2.33%)
Earnings per share (TTM) USD$1.236

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy InterDigital stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

InterDigital price performance over time

Historical closes compared with the close of $61.05 from 2020-11-16

1 week (2020-11-25) 2.48%
1 month (2020-11-06) 5.13%
3 months (2020-09-02) -3.03%
6 months (2020-06-02) 7.35%
1 year (2019-12-02) 8.48%
2 years (2018-12-02) N/A
3 years (2017-12-02) N/A
5 years (2015-12-02) 17.52%

Is InterDigital under- or over-valued?

Valuing InterDigital stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of InterDigital's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

InterDigital's P/E ratio

InterDigital's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 48x. In other words, InterDigital shares trade at around 48x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

InterDigital's PEG ratio

InterDigital's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.7186. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into InterDigital's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

InterDigital's EBITDA

InterDigital's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$145.3 million.

The EBITDA is a measure of a InterDigital's overall financial performance and is widely used to measure a its profitability.

InterDigital financials

Revenue TTM USD$355.4 million
Operating margin TTM 18.48%
Gross profit TTM USD$164 million
Return on assets TTM 2.66%
Return on equity TTM 3.99%
Profit margin 10.79%
Book value $24.978
Market capitalisation USD$1.8 billion

TTM: trailing 12 months

Shorting InterDigital shares

There are currently 1.4 million InterDigital shares held short by investors – that's known as InterDigital's "short interest". This figure is 5% down from 1.5 million last month.

There are a few different ways that this level of interest in shorting InterDigital shares can be evaluated.

InterDigital's "short interest ratio" (SIR)

InterDigital's "short interest ratio" (SIR) is the quantity of InterDigital shares currently shorted divided by the average quantity of InterDigital shares traded daily (recently around 177306.40703518). InterDigital's SIR currently stands at 7.96. In other words for every 100,000 InterDigital shares traded daily on the market, roughly 7960 shares are currently held short.

However InterDigital's short interest can also be evaluated against the total number of InterDigital shares, or, against the total number of tradable InterDigital shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case InterDigital's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 InterDigital shares in existence, roughly 50 shares are currently held short) or 0.0597% of the tradable shares (for every 100,000 tradable InterDigital shares, roughly 60 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against InterDigital.

Find out more about how you can short InterDigital stock.

InterDigital share dividends

Dividend payout ratio: 113.47% of net profits

Recently InterDigital has paid out, on average, around 113.47% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.33% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), InterDigital shareholders could enjoy a 2.33% return on their shares, in the form of dividend payments. In InterDigital's case, that would currently equate to about $1.4 per share.

InterDigital's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

InterDigital's most recent dividend payout was on 28 October 2020. The latest dividend was paid out to all shareholders who bought their shares by 13 October 2020 (the "ex-dividend date").

InterDigital share price volatility

Over the last 12 months, InterDigital's shares have ranged in value from as little as $31.04 up to $66.165. A popular way to gauge a stock's volatility is its "beta".

IDCC.US volatility(beta: 1.13)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while InterDigital's is 1.1318. This would suggest that InterDigital's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

InterDigital overview

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It provides technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G NR, LTE-Advanced, and cellular Internet of Things (IoT) areas, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. It also provides video coding and transmission technologies; and engages in the research and development of artificial intelligence. The company's patented technologies are used in various products that include cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, which comprise base stations; components, dongles, and modules for wireless devices; and IoT devices and software platforms. As of December 31, 2019, it had a portfolio of approximately 32,000 patents and patent applications related to wireless communications, video encoding, display technology, and other areas. The company was founded in 1972 and is headquartered in Wilmington, Delaware.

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