InterDigital Raises FY2025 EPS Guidance After Q3 Beat, Allspring Cuts Stake by 89%
InterDigital reported Q3 EPS of $1.93, topping estimates by $0.14, with revenue up 28% to $164.68 million, and raised FY 2025 EPS guidance to 14.57–14.83. Allspring Global Investments sold 36,041 shares in Q3, reducing its stake by 89.1% to 4,413 shares valued at $1.54 million.
1. Major Stake Reduction by Allspring Global Investments
Allspring Global Investments Holdings LLC disclosed an 89.1% reduction in its InterDigital shareholding during the third quarter, selling 36,041 shares and retaining only 4,413 shares by quarter end. According to the firm’s most recent SEC filing, the remaining shares were valued at $1.54 million. This dramatic decrease in position marks one of the largest single-quarter divestitures by an institutional holder, potentially signaling a shift in Allspring’s sector allocation or risk outlook for wireless technology patent licensors.
2. Significant Moves by Other Institutional Investors
Several large investment managers either increased or initiated positions in InterDigital during the same period. Wedge Capital Management established a new stake valued at approximately $67.3 million in the third quarter. Vontobel Holding boosted its position by 144.3%, acquiring 7,113 shares and bringing its total to 12,043 shares valued at $4.16 million. Prudential Financial added 1,863 shares (a 7.4% increase) in the second quarter, and Bank of Montreal modestly increased its holdings by 911 shares (0.8%). Overall, institutional ownership accounts for 99.83% of shares outstanding, underscoring the company’s investor base concentration.
3. Recent Quarterly Results and FY2025 Outlook
In its latest quarterly report, InterDigital delivered $164.68 million in revenue, surpassing consensus estimates by $11.25 million and representing 28.0% year-over-year growth. Earnings per share of $1.93 exceeded analyst forecasts by $0.14, driving a net margin of 53.5% and return on equity of 51.9%. Management set full-year 2025 EPS guidance between 14.57 and 14.83, and fourth-quarter guidance of 1.38 to 1.63. Analysts on average project 9.21 EPS for the current fiscal year, reflecting confidence in recurring royalty revenue from 5G and multimedia patent licensing.
4. Dividend Increase and Analyst Sentiment
InterDigital announced a quarterly dividend of $0.70 per share, payable January 28 to shareholders of record as of January 14, translating to an annualized payout of $2.80 and a yield of approximately 0.9%. The company’s dividend payout ratio stands at 18.9%, reflecting ample capacity for further distributions given its strong free cash flow. Several brokerages have recently updated their ratings: two firms reiterated 'buy' or 'outperform' assessments, while one maintained a 'hold' stance, resulting in a consensus 'moderate buy' and average target price of $416.67.