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InterDigital , Inc. (NASDAQ:IDCC) director Derek K. Aberle has sold a total of $269,475 worth of company stock, according to a recent SEC filing. The transactions, conducted under a pre-established trading plan, involved the sale of shares at varying prices on the open market.
On August 19, 2024, Aberle sold 1,411 shares of InterDigital common stock at an average price of $134.23, netting a total of $189,398. Additionally, another batch of 594 shares was sold at an average price of $134.81, amounting to $80,077. The sales were executed in multiple transactions within price ranges of $133.49 to $134.48 for the first set of shares, and $134.54 to $134.89 for the second, as noted in the footnotes of the SEC filing.
The filing also indicated that these sales were made pursuant to a Rule 10b5-1 trading plan, which was adopted by Aberle on May 20, 2024. Such plans allow company insiders to establish pre-arranged plans to buy or sell shares at a time when they are not in possession of material, non-public information, providing a defense against potential accusations of insider trading.
Following the sales, Aberle still holds 7,638.6427 shares of InterDigital stock, directly. The recent transactions reflect a part of the director's stock trading strategy and provide an insight into insider activity at the company. Investors often monitor such filings for indications of an insider’s view of the company’s prospects, although it should be noted that selling shares does not necessarily imply a negative outlook.
InterDigital, headquartered in Wilmington, Delaware, specializes in the development of mobile technology and holds a portfolio of patents in the field. The company's stock performance and insider transactions are closely watched by investors seeking to understand market trends and company health.
In other recent news, InterDigital, Inc. has reported robust Q2 results for 2024, with a revenue of $223 million and a record first half revenue of $487 million. The company has subsequently raised its full-year revenue guidance by $70 million, with expectations now ranging from $690 million to $740 million. This increase is credited to a new device license with Google (NASDAQ:GOOGL), multiple court victories against Lenovo, and a strong pipeline in 5G, video compression, and AI technologies. Non-GAAP earnings per share are projected to exceed $10.30, a significant rise from previous estimates. In addition to these financial developments, InterDigital is involved in ongoing arbitration with Samsung (KS:005930) and has plans for capital allocation, including note repayment, share buybacks, and dividends. These recent developments reflect InterDigital's commitment to innovation and growth.
InvestingPro Insights
Amidst the recent insider trading activities at InterDigital, Inc. (NASDAQ:IDCC), investors may find additional context through real-time data and insights from InvestingPro. Notably, the company boasts a solid financial position, underscored by an impressive gross profit margin of 78.18% over the last twelve months as of Q2 2024. This robust margin is indicative of the company's efficient operations and strong pricing power within its industry.
Moreover, InterDigital's commitment to shareholder value is evident through its consistent dividend payments, which have been maintained for 14 consecutive years, and a high shareholder yield. The company's financial prudence is further highlighted by its strategic approach to capital management, as reflected in its low P/E ratio of 12.41 relative to near-term earnings growth and a strong free cash flow yield. These metrics suggest that the company is trading at a discount to its intrinsic value, providing a potentially attractive entry point for value-oriented investors.
InterDigital's stock has experienced a high return over the last year, with a 68.54% price total return, and it's currently trading near its 52-week high, at 96.99% of the peak price. This performance, coupled with a fair value estimation by InvestingPro at $151.73, higher than the previous close of $135.03, indicates a positive sentiment and growth potential for the stock.
For those looking to delve deeper into InterDigital's prospects, InvestingPro offers additional tips. There are currently 16 InvestingPro Tips available, including insights on earnings revisions, valuation, and price volatility, which can provide a more comprehensive understanding of the company's outlook. These tips are accessible through InvestingPro's dedicated product page for InterDigital at https://www.investing.com/pro/IDCC.
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