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Is this Large Market Cap Stock target price reasonable for InterDigital, Inc. (NASDAQ:IDCC)?

The company in question is, InterDigital, Inc. (NASDAQ:IDCC) currently with a stock price of 76.94 (-0.50% today). The market cap for InterDigital, Inc. is 2655.51, and is in the sector Technology, and Wireless Communications industry. The target price for InterDigital, Inc. is 82. Currently InterDigital, Inc. is trading with a P/E of 21.87, and a forward P/E of 22.03. Average volume for InterDigital, Inc. is 339.66 and so far today it is 179716.

Performance in the last year for InterDigital, Inc. has been 61.66%. For EPS growth, InterDigital, Inc. has seen a growth of 25.00%, and is looking to grow in the next year to -38.48%. More long term stats show that EPS growth has been -0.90% over the last five years and could be 27.10% for the next five years. InterDigital, Inc. has seen sales growth quarter over quarter at -36.00%, with EPS growth quarter over quarter at 27.90%. The 20-day simple moving average is 5.54%, with the 200-day simple moving average coming to 33.14%.

Since the IPO date for InterDigital, Inc. on the 3/26/1990, InterDigital, Inc. has seen performance year to date to be 60.14%. With InterDigital, Inc. trading at 76.94, the dividend yield is 1.55%, and the EPS is 3.54.

So could InterDigital, Inc., be undervalued? Well as said before P/E is 21.87. The PEG is 0.81, P/S is 6.7 and the P/B is at 5.19. The P/cash is 3.26, with P/free cash flow at 11.66.

InterDigital, Inc. ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 2.6. This is with long term debt/equity at 0.52, and total debt/equity at 0.52.

In terms of margins, InterDigital, Inc. has a gross margin of *TBA, an operating margin of 43.00% and a profit margin of 31.70%.Payout ratio for InterDigital, Inc. is 22.40%. Return on assets come to 8.90% with return on investment coming to 14.40%.

Insider ownership for InterDigital, Inc., is at 1.30% and institutional ownership comes to 70.20%. Outstanding shares are at 34.34. While shares float is 33.74. The float short is currently 5.57%, and short ratio is 5.54.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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