IDCC Stock Analysis: Buy, Sell, or Hold?

IDCC - InterDigital, Inc.

PATENT OWNERS & LESSORS
$279.17
-18.67 (-6.27%) ▼
5d: -3.36%
30d: +4.52%
90d: -10.37%
BUY
MODERATE Confidence
Analysis Updated: Jun 23, 2026 12:00 AM ET
Earnings: Jul 30, 2026

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: IDCC shows positive signals but monitor for confirmation. Market pricing in 5.6% decline. Moderate conviction.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$460.02
Based on 10.5% avg growth
INTRINSIC VALUE TODAY
$285.64
2.3% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: IDCC is currently trading at $279.17, which is considered slightly high relative to its 30-day fair value range of $253.80 to $282.15. From a valuation perspective, the stock is trading at a discount (Forward PE: 24.8) compared to its historical average (29.5). Remarkably, the market is currently pricing in an annual earnings decline of 5.6% over the next few years. This aligns with recent fundamental challenges.

Technical Outlook: Technically, IDCC is in a strong downtrend. Immediate support is located at $249.47, while resistance sits at $301.84. Short-term momentum is weak, with the stock down 6.3% recently.

Market Sentiment: IDCC has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $462.67 (+65.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position SLIGHTLY HIGH
Historical Trading Range $253.80 - $282.15
Company Quality Score 57/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 71.4%

All Signals

  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • BEARISH: Downward momentum (-6.3%)
  • BULLISH: Trading 65.7% below Wall St target ($462.67)

Trading Range Analysis

30-Day Trading Range $253.80 - $282.15
Current vs Trading Range SLIGHTLY HIGH

Support & Resistance Levels

Support Level $249.47
Resistance Level $301.84
Current Trend Strong Downtrend
Technical data as of Jun 23, 2026

Fundamental Context

Forward P/E (Next Year Est.) 24.83
Wall Street Target $462.67 (+65.7%)
Revenue Growth (YoY) -2.4%
Earnings Growth (YoY) -38.0%
Profit Margin 44.2%
Valuation Discount vs History -5.6% cheaper
PE vs Historical 24.8 vs 29.5 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -5.6% (market-implied from PE analysis)
1-Year Target $263.54 (-6%)
2-Year Target $248.78 (-11%)
3-Year Target $234.85 (-16%)
3-Yr Target (if PE normalizes) (PE: 25→30) $279.00 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 24.8, Growth: 16.9%) $446.28 (+60%)
Base: (SPY PE: 21.8, Growth: 16.9%) $391.44 (+40%)
Bear: (PE: 18.5, Growth: 16.9%) $332.72 (+19%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (28x PE), but valuation improves significantly next year (25x PE) as earnings recover.
Trailing PE: 28.42 | Current EPS (TTM): $10.48
Bull Case $351.46 (+26%)
Analyst growth 7.3%, PE expands to 31.3
Base Case $319.51 (+14%)
Market implied 7.3%, PE stable at 28.4
Bear Case $202.53 (-28%)
Severe decline -20.0%, PE contracts to 24.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 24.8 to 29.5
Stabilization Target: $331.65 (+18.8%)
PE Expansion Potential: +18.8%
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Last updated: June 24, 2026 5:16 AM ET
Data refreshes hourly during market hours. Next update: 6:16 AM
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Ticker Score Recommendation Change %
Technical Signals Check
Insider Activity (6 Months)
0
Buys
18
Sells
Net
INSIDERS SELLING
Recent Transactions
Rajesh Pankaj SELL 1500 shares 2026-04-06
Joshua D Schmidt SELL 6000 shares 2026-03-17
Rajesh Pankaj SELL 1000 shares 2026-03-05

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