InterDigital Inc. stock trades under the ticker IDCC & has shown recent bullish behavior amid a volatile market.
IDCC stock closed at $61.29/share on 8/3/2022.
InterDigital Inc. IDCC Stock’s Technical Performance Broken Down
IDCC Stock Price: $61.29
10 Day Moving Average: $61.09
50 Day Moving Average: $62.15
200 Day Moving Average: $64.60
RSI: 49.7
MACD: -0.276
Yesterday, IDCC completed a bullish MACD crossover, closing just above their 10 day moving average.
Recent volumes have been light & their RSI is neutral, signaling that there is uncertainty around the price of IDCC in the markets.
They have support at $61.24 & $61.02, while they try to break above the $62.15 & $63.16/share resistance levels.
InterDigital Inc. IDCC Stock As A Long-Term Investment
Long-term oriented investors will like IDCC stock’s valuation metrics, with a 28.29 P/E (ttm) & a 2.51 P/B (mrq).
They recently reported 23% Quarterly Revenue Growth Y-o-Y, with 223% Quarterly Earnings Growth Y-o-Y.
Their balance sheet also looks appealing, with $899.22M of Total Cash (mrq) & $424.1M of Total Debt (mrq).
IDCC stock pays a 2.28% dividend yield, which may be sustainable in the long-term, despite their 64.5% payout ratio.
84.6% of IDCC stock’s outstanding share float is owned by institutional investors.
InterDigital Inc. IDCC Stock As A Short-Term Trade Using Options
Short-term focused traders can use options to hedge against the volatile market environment, while profiting from movements in either direction for IDCC stock.
I am looking at the contracts with the 8/19 expiration date.
The $60, $57.50 & $55 call options are all in-the-money, listed from most to least liquid.
There are currently no puts in-the-money, but there is open interest at the $57.50, $60 & $55 strike prices should the stock fall.
Tying It All Together
IDCC stock has many interesting attributes that traders & investors are sure to like.
Investors will like their valuation metrics & balance sheet health, but may want to research further on their dividend’d sustainability in the mid-to-long term.
Traders will like their recent resilience in a volatile market period, but may be disappointed by how illiquid their options are.
Overall, it is worth researching how IDCC stock fits into your portfolio strategy.
*** I DO NOT OWN SHARES OF IDCC STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***