In a recent SEC filing, Joshua D. Schmidt, the Chief Legal Officer and Corporate Secretary of InterDigital , Inc. (NASDAQ:IDCC), disclosed the sale of 140 shares of common stock on November 19, 2024. The shares were sold at an average price of $182.19, amounting to a total transaction value of $25,506.
This transaction was conducted under a Rule 10b5-1 trading plan, which Schmidt adopted on May 22, 2024. Following this sale, Schmidt's direct ownership stands at 24,138.3568 shares.
Additionally, the filing reported other transactions related to the withholding of restricted stock units and the cash settlement of fractional shares. These were executed to satisfy tax liabilities and in connection with the vesting of restricted stock units.
In other recent news, InterDigital, Inc. reported a robust third quarter in 2024, with revenues of approximately $129 million, surpassing the company's guidance. This performance was mainly driven by new licensing agreements, including a significant deal with Oppo Group, which also resolved all pending litigation. InterDigital now holds agreements with the top four smartphone manufacturers, covering a significant portion of the global market. This success led the company to raise its 2024 revenue guidance to a midpoint of $860 million. Adjusted EBITDA for the quarter was higher than expected at $65 million, and the company reported a strong cash generation, ending the quarter with over $800 million in cash.
InterDigital's annual recurring revenue (ARR) is projected to be about $470 million, an $80 million increase. The company's guidance is based on existing contracts, with the potential for additional revenue from new agreements. Revenue recognition from Lenovo depends on ongoing arbitration, with a decision expected after year-end. The company is optimistic about leveraging recent deals to accelerate licensing opportunities with other manufacturers, including Vivo and Huawei. The company is focused on growth in the smartphone and Internet of Things sectors, and the long-term cash tax rate is expected to remain in the mid-to-high teens.
InvestingPro Insights
InterDigital, Inc. (NASDAQ:IDCC) has been experiencing significant momentum in the market, as evidenced by its strong performance metrics. According to InvestingPro data, the company's stock has seen a remarkable 92.74% total return over the past year, with a 68.62% gain in just the last six months. This upward trend aligns with the recent insider sale by Chief Legal Officer Joshua D. Schmidt, who may be capitalizing on the stock's strength.
The company's financial health appears robust, with InvestingPro Tips highlighting that InterDigital holds more cash than debt on its balance sheet. This strong financial position is complemented by impressive gross profit margins, which stand at 75.95% for the last twelve months as of Q3 2024. Such high margins are indicative of the company's efficient operations and pricing power in its market.
InterDigital's revenue growth of 28.53% over the last twelve months suggests that the company is in an expansion phase, which could be driving investor interest. The stock is currently trading near its 52-week high, with its price at 95.71% of the highest point in the past year. This proximity to the peak price could explain why insiders might consider it an opportune time for share sales.
For investors seeking additional insights, InvestingPro offers 17 more tips on InterDigital, providing a comprehensive view of the company's financial health and market position. These tips could be particularly valuable given the stock's recent performance and the insider activity reported.
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