Wilmington, DE—Pankaj Rajesh, the Chief Technology Officer of InterDigital , Inc. (NASDAQ:IDCC), recently sold 700 shares of the company's common stock. The shares were sold at an average price of $204.13 each, totaling approximately $142,891. The transaction comes as InterDigital's stock has delivered an impressive 96% return over the past year, with the company maintaining strong gross profit margins of 76%.
This transaction was conducted on January 6, 2025, as part of a pre-arranged trading plan under Rule 10b5-1, which was adopted on May 9, 2024. Following the sale, Rajesh retains ownership of 52,996.6625 shares in the company. InvestingPro analysis shows the stock trading near its Fair Value, with 13 additional key insights available to subscribers.
InterDigital, Inc., known for its focus on patent ownership and licensing, is headquartered in Wilmington, Delaware. The company continues to operate within the real estate and construction sector, contributing to technological advancements and intellectual property management. Notable achievements include maintaining dividend payments for 15 consecutive years, with a current P/E ratio of 17.9x. Access the complete InvestingPro Research Report for comprehensive analysis of IDCC's financial health and growth prospects.
In other recent news, InterDigital has reported a strong third quarter in 2024, with revenues of approximately $129 million, surpassing the company's guidance. This performance was predominantly driven by new licensing agreements, including a significant deal with Oppo Group, leading InterDigital to raise its 2024 revenue guidance to a midpoint of $860 million. The company's adjusted EBITDA for the quarter was also higher than expected at $65 million, and it reported a robust cash generation, ending the quarter with over $800 million in cash.
Furthermore, InterDigital now holds agreements with the top four smartphone manufacturers, covering a considerable portion of the global market. These recent developments have positioned the company well for future growth. In terms of future expectations, analysts from the firm project a record recurring revenue of approximately $118 million in Q4 2024, and an annual recurring revenue (ARR) of about $470 million, an $80 million increase.
The company's outlook is based on existing contracts, with the potential for additional revenue from new agreements. Revenue recognition from Lenovo is dependent on ongoing arbitration, with a decision expected after the end of the year. InterDigital is optimistic about leveraging recent deals to accelerate licensing opportunities with other manufacturers, including Vivo and Huawei.
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