Last Updated: 18 Sep 2024
Executive Summary
InterDigital Inc. (IDCC) is a leading provider of wireless communications technologies. The company has a strong financial position with a market capitalization of $3.41 billion and an EBITDA of $393.1 million. IDCC has a trailing PE ratio of 13.62 and a forward PE ratio of 21.37, which is below the industry average. The company's revenue and earnings have grown steadily in recent years, and analysts expect this growth to continue in the future.
Company Overview
InterDigital Inc. is headquartered in Wilmington, Delaware and was founded in 1972. The company designs and develops technologies that enable and enhance wireless communications. IDCC's products are used in a wide range of devices, including smartphones, tablets, and laptops. The company has a global customer base and generates revenue from licensing its technologies to other companies.
Fundamental Analysis
IDCC's financial performance has been strong in recent years. The company's revenue has grown from $632.7 million in 2019 to $732.7 million in 2023. Net income has also grown from $225.1 million in 2019 to $278.1 million in 2023. IDCC has a strong balance sheet with $1.2 billion in cash and equivalents and no long-term debt.
Technical Analysis
The technical analysis of IDCC's stock price shows that the stock is in a bullish trend. The stock price has been trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is also above 50, which indicates that the stock is overbought.
Short Term Outlook
In the short term, IDCC's stock price is expected to continue to rise. The company's strong financial performance and positive analyst recommendations are likely to drive the stock price higher. However, the stock price could be volatile in the short term due to market conditions.
Long Term Outlook
In the long term, IDCC's stock price is expected to continue to grow. The company's strong competitive position and its exposure to the growing wireless communications market are likely to drive the stock price higher. However, the stock price could be volatile in the long term due to market conditions and changes in the competitive landscape.
Analyst Recommendations
Analysts are bullish on IDCC's stock. Two analysts have a strong buy rating on the stock, one analyst has a buy rating, and one analyst has a hold rating. The average analyst target price is $136.5, which is above the current stock price.
