Exploring InterDigital, Inc. (IDCC) Investor Profile: Who’s Buying and Why?

You're looking at InterDigital, Inc. (IDCC) and wondering why the stock has been on such a tear-it's up almost 97% over the last year, with the share price hitting around $370.07 in early November 2025, and you want to know who is driving that conviction. Honestly, it's a story of institutional dominance and a patent licensing model that's finally delivering a huge, predictable cash flow. The first thing to grasp is that this isn't a retail-driven stock; institutional investors and hedge funds own a staggering 99.83% of the company, with giants like BlackRock, Inc. holding a 16.42% stake and The Vanguard Group, Inc. owning 12.92% of the shares as of the most recent September 2025 filings. Their buying is grounded in the company's financial clarity, which is rare for a patent business.

The big money is betting on the stability of that core licensing revenue, which hit an all-time high of $588.0 million in annualized recurring revenue (ARR) in Q3 2025, plus they see the upside from new licensing deals. Management is guiding for full-year 2025 revenue between $820.0 million and $824.0 million, with non-GAAP earnings per share (EPS) expected to land between $14.570 and $14.830. That's a serious beat, and it shows the leverage in their business model-you get a high-margin, technology-driven play on 5G, 6G, and AI without the massive capital expenditure of a carrier. So, what specific licensing wins are fueling this institutional accumulation, and what near-term risks-like the inherent volatility of patent litigation-could derail this impressive trajectory? Let's dig into the why behind the biggest buyers.

Who Invests in InterDigital, Inc. (IDCC) and Why?

You've seen InterDigital, Inc. (IDCC) stock soar, and now you want to know who is behind the buying pressure and if their thesis holds up for your portfolio. The direct takeaway is this: InterDigital, Inc. is overwhelmingly an institutional play, driven by its predictable, high-margin licensing revenue and its critical role in next-generation wireless and video standards like 5G and AI.

The investor base is not a balanced mix of retail traders and large funds. It's heavily skewed toward institutional money, which owns anywhere from 80.21% to nearly 99.83% of the company's stock, depending on how you count passive index funds. This means the big-money players are the main drivers of the stock's valuation and volatility.

Here's the quick math on who holds the most sway:

• Institutional Investors: Own the vast majority, with over 978 funds reporting positions as of late 2025.
• Retail/Public Investors: Hold a smaller, but still significant, portion, estimated at around 17.75% of the shares.
• Insiders: Corporate insiders own about 2.03%, and they have been net sellers recently, disposing of approximately 6,182 shares in the 90 days leading up to November 2025.

Key Investor Types and Their Weight

The ownership structure tells you a lot about the stock's stability. When institutional investors dominate, you get less erratic movement than with a retail-heavy stock, but large block trades can still cause big swings. The largest holders are passive giants, which means they are long-term holders tied to index performance.

For example, as of September 29, 2025, BlackRock, Inc. holds a massive 16.42% of the company's shares, totaling 4,226,997 shares. The Vanguard Group, Inc. is right behind them, owning 12.92% or 3,326,113 shares. These aren't active traders; they are index funds and ETFs (Exchange-Traded Funds) that buy and hold for the long haul. You defintely want to know who the biggest owners are.

Here is a snapshot of the top institutional holders, based on the latest 2025 filings:

Investment Motivations: Growth, Moats, and Income

Investors are attracted to InterDigital, Inc. for three primary reasons: its powerful market position, its explosive growth, and its reliable dividend. The company's core business is licensing its intellectual property (IP) in wireless (5G, 6G) and video/AI technology, giving it a wide economic moat (a structural competitive advantage).

The financial results for 2025 highlight this appeal. The company's Annualized Recurring Revenue (ARR) hit a record high of $588 million as of Q3 2025, representing a 49% year-over-year jump. This recurring revenue stream is highly predictable, which financial analysts love. Management is guiding for full-year 2025 revenue between $820 million and $824 million, with Adjusted EBITDA projected to be between $569 million and $577 million. That's a strong margin story.

• Growth Prospects: Licensing deals with major players now cover nearly 80% of the global smartphone market, positioning InterDigital, Inc. for sustained growth in the next tech cycles.
• Dividend Appeal: For income-focused investors, the company offers an annual dividend of $2.80 per share, with a forward yield of about 0.83%. They recently raised their quarterly payout to $0.70, signaling management's confidence in future cash flow.
• Strategic Position: The company is a key player in the foundational technology for 5G, IoT (Internet of Things), and new AI-driven video standards, which you can read more about here: Mission Statement, Vision, & Core Values of InterDigital, Inc. (IDCC).

Prevailing Investment Strategies

The institutional money generally falls into two camps: long-term passive holding and active growth/value strategies.

Growth Investing: This is the dominant active strategy. Growth investors are buying based on the projected earnings surge, with analysts forecasting year-over-year earnings growth of 64.6% for the current fiscal year. They are betting that new licensing agreements-especially in the nascent CE/IoT/Auto and streaming markets-will keep ARR climbing past the $588 million Q3 2025 figure. The high Return on Equity (ROE) of 51.97% also makes a strong case for efficient growth.

Value Investing: Though it has a high forward P/E ratio of 23.89 compared to some peers, value investors see a strong, undervalued asset because of the patent portfolio's quality. They view the company as a cash-flow machine with a relatively low debt-to-equity ratio, which provides a margin of safety against litigation risks that are inherent to the IP licensing business.

Momentum Trading: Short-term traders are also active. The stock's Relative Strength Index (RSI) of 79.59 in late 2025 indicated it was in overbought territory, a classic signal for momentum players to either take profits or ride the trend until it breaks. The put/call ratio of 0.94 also suggests a slightly bullish bias among options traders, who are betting on continued upward movement.

What this estimate hides is the inherent risk of patent litigation, which can cause revenue and earnings to fluctuate wildly if a major license expires without renewal. Still, the current momentum is clearly on the side of the growth investors.

Institutional Ownership and Major Shareholders of InterDigital, Inc. (IDCC)

You need to know who is really calling the shots at InterDigital, Inc. (IDCC), because institutional money doesn't just buy shares-it buys influence. The direct takeaway is that IDCC is overwhelmingly controlled by mega-funds, with institutional investors and hedge funds owning nearly all of the company's stock, giving them a powerful say in its core patent licensing strategy.

As of late 2025, the institutional ownership is exceptionally high, sitting at roughly 99.83% of the company's stock. This means the stock's movement is defintely driven by the decisions of a few hundred large asset managers, not individual retail investors. These institutions collectively hold over 33.43 million shares.

Top Institutional Investors: Who Holds the Keys?

The shareholder roster for InterDigital, Inc. is a clear list of the world's largest asset managers, the ones who manage trillions of dollars for pension funds, endowments, and index funds. The top two investors alone-BlackRock, Inc. and The Vanguard Group, Inc.-are passive investing titans whose combined stake is substantial.

Here is a snapshot of the largest holders, based on their most recent 13F filings from the third quarter of 2025:

Here's the quick math: BlackRock and Vanguard together own nearly 30% of InterDigital, Inc. That's a huge concentration of power, and it tells you that a significant portion of the stock is held in low-cost, passive index funds, which are inherently long-term holders. This stability is a good sign.

Recent Shifts: Are Funds Buying or Selling?

In the most recent reporting period leading up to November 2025, the overall institutional sentiment was one of slight accumulation and consolidation. While the total shares owned by institutions remained essentially flat, increasing by only 0.00% to 33.13 million shares, the number of distinct funds reporting a position in IDCC rose by 51, a 5.50% jump.

This suggests that while the largest funds aren't making massive, market-moving purchases, a broader base of smaller and mid-sized funds are adding the stock to their portfolios. You see big swings in smaller players, though:

• Disciplined Growth Investors, Inc. cut their stake by 12.88% in the last quarter.
• Empowered Funds LLC significantly boosted its position, increasing its stake by a massive 303.1% in Q2 2025.

The net zero change in total shares is a classic sign of a stock in a holding pattern after a strong run. The stock price has surged, and some active managers are taking profits while new funds are initiating smaller, strategic positions.

The Role of Large Investors in IDCC's Strategy

The massive institutional ownership plays a crucial, though often quiet, role in InterDigital, Inc.'s strategy. IDCC is fundamentally an R&D shop that generates revenue through its patent licensing model, holding over 32,000 patents in wireless, video, and AI technologies. The large institutional base signals an implicit endorsement of this unique, litigation-heavy business model.

These big investors push for a focus on long-term value, which for IDCC means continually investing heavily in R&D for next-generation technologies like 6G and AI integration. The conservative dividend payout ratio of only 13.49% shows the company retains capital for these growth initiatives, a strategy that large, growth-focused funds appreciate. They want to see the company reinvest its strong earnings-which are projected to hit 2025 FY EPS guidance of $14.57 to $14.83-back into its patent portfolio.

What this estimate hides is the inherent volatility in the patent licensing revenue stream. Big contract renewals or legal victories, like the recent injunctions secured against Disney, can cause lumpy earnings, but the institutional base provides the stability needed to weather that volatility. They are focused on the long-term growth story, which you can read more about in Mission Statement, Vision, & Core Values of InterDigital, Inc. (IDCC). The sheer size of BlackRock and Vanguard means they influence corporate governance on issues like executive pay and board composition, ensuring the management team remains accountable to their core R&D and licensing mandate.

Finance: Monitor the next 13F filings for any major shifts in BlackRock or Vanguard's holdings by the end of the quarter.

Key Investors and Their Impact on InterDigital, Inc. (IDCC)

If you're looking at InterDigital, Inc. (IDCC), the first thing to understand is that this is a stock overwhelmingly owned by institutions. As of the latest filings, institutional investors hold well over 80% of the company's stock, a concentration that makes their collective moves the single biggest driver of the share price. This isn't a retail-driven story; it's a battle of the giants.

The investor profile tells you why the stock has seen such a significant run-up-the market is buying into the shift from a pure patent 'cash cow' to a growth-oriented 'IP as a service' model. This pivot, coupled with strong Q3 2025 earnings where the company beat estimates with $164.68 million in revenue, is what's driving the money flow.

The Dominant Institutional Players

The list of top holders for InterDigital, Inc. is a who's who of global asset managers, which is typical for a mid-cap technology company with a strong intellectual property (IP) portfolio. The largest stakes are held by the index-fund behemoths, BlackRock, Inc. and Vanguard Group Inc., but the real action often comes from the active managers.

Here's a snapshot of the top institutional positions as of the September 30, 2025, filing date:

Here's the quick math: BlackRock, Inc. and Vanguard Group Inc. alone control a substantial portion of the float. Their passive nature means they generally track the market, but their sheer size-holding over 7.5 million shares combined-means any subtle rebalancing can still move the stock price defintely.

Recent Moves and the Growth Bet

The most important recent move is the massive accumulation by Price T Rowe Associates Inc /Md/, which increased its stake by over 130% in the third quarter of 2025 alone. This isn't passive investing; this is a clear, active bet on the company's future growth strategy, particularly its push to reach $1 billion in Annual Recurring Revenue (ARR) by 2030. When a major active fund makes a move that big, it signals high conviction in the management's ability to execute on its new licensing agreements and expansion into areas like streaming and IoT.

You're seeing the active money chase the growth story, which is a bullish signal. The company's annualized recurring revenue (ARR) hit an all-time high of $588 million in Q3 2025, up 49% year-over-year, giving these investors confidence. Plus, the company raised its quarterly dividend to $0.70 per share, a 17% increase, which appeals to income-focused institutional investors.

• Active Buying: Price T Rowe Associates Inc /Md/ added 773,671 shares in Q3 2025.
• Growth Focus: Investors are backing the strategy to target $1 billion ARR by 2030.
• Insider Selling: Insiders, including the Chief Technology Officer, have been net sellers, disposing of over 6,182 shares in the past 90 days, which is something to monitor for potential overvaluation signals.

Investor Influence: Beyond the Numbers

The influence of these large investors is most visible in how InterDigital, Inc. manages its core licensing business, which you can read more about at InterDigital, Inc. (IDCC): History, Ownership, Mission, How It Works & Makes Money. The company's value is tied directly to its intellectual property (IP), so the institutional focus is on the successful enforcement of patents and the signing of new, high-value licensing deals.

The firm's aggressive legal actions against major players like Disney to protect its IP rights, and its lobbying efforts in Washington (disclosing $30,000 in Q3 2025 lobbying related to strengthening the U.S. patent system), are direct reflections of what its institutional owners demand: a robust defense of the patent portfolio that generates their revenue. The high stock volatility, with a Beta of 1.9, is also a function of this institutional ownership, as large block trades can create sharp price movements. This means the stock is not for the faint of heart, but the potential upside is significant if the licensing strategy continues to pay off.

The next concrete step for you is to track the Q4 2025 13F filings to see if the accumulation by active funds like Price T Rowe Associates Inc /Md/ continued, or if the passive funds started to take profits after the stock's run-up to $370.07 per share in early November 2025.

Market Impact and Investor Sentiment

You're looking at InterDigital, Inc. (IDCC) and seeing a stock that's nearly doubled in the last year, so you want to know who is driving that train. The direct takeaway is this: institutional money has a near-total grip on the stock, and while the major passive funds are trimming positions, a few key active managers are piling in, signaling a strong belief in the company's long-term licensing power.

As of late 2025, institutional investors-the big funds, pension plans, and endowments-own a staggering 100.71% to 103.87% of the company's shares outstanding, which is a massive concentration that can amplify price moves. This level of ownership means the stock's direction is defintely dictated by a handful of major players. The overall 'Fund Sentiment Score' suggests funds are net buyers, which is bullish.

Here's the quick math on who is doing what among the giants:

• BlackRock, Inc.: Held over 4.22 million shares as of September 30, 2025, but slightly reduced its stake by 0.433% in the quarter.
• Vanguard Group Inc: Held over 3.32 million shares, also trimming its position by 1.35%.
• Price T Rowe Associates Inc /Md/: This is the big signal-they dramatically increased their stake by 130.337% to over 1.36 million shares, a clear sign of active conviction.

What this estimate hides is the insider activity. Corporate insiders-executives and directors-have been net sellers, disposing of 6,182 shares valued at approximately $2.03 million in the three months leading up to November 2025. That's a classic mixed signal: institutions are buying the story, but the people running the business are taking some money off the table.

Recent Market Reactions to Ownership Shifts

The market has responded to InterDigital's operational strength, not just the ebb and flow of institutional ownership. The stock price surged a remarkable 97.14% from November 2024 to November 7, 2025, hitting $370.07 per share. A move like that shows the market is rewarding the company's core business: patent licensing (the right to use their intellectual property).

The most recent positive reaction came from the company's strong financial updates. When InterDigital updated its FY 2025 earnings guidance, the stock reacted well. The new guidance projects earnings per share (EPS) between $14.570 and $14.830, which comfortably beat the prior analyst consensus of $14.300. Plus, they raised the quarterly dividend to $0.70 per share, up from $0.60, which is a concrete sign of financial health and commitment to shareholders.

The options market is also leaning positive, with a put/call ratio of 0.94 as of October 30, 2025, which generally indicates a slightly bullish outlook. If you want a deeper dive into the company's fundamentals, you should read Breaking Down InterDigital, Inc. (IDCC) Financial Health: Key Insights for Investors.

Analyst Consensus and Forward View

The Wall Street consensus on InterDigital, Inc. is overwhelmingly positive, which reinforces the institutional buying trend. Out of the analysts covering the stock in late 2025, the consensus rating is a solid 'Buy' or 'Strong Buy'.

Analysts are pricing in significant upside, though the price targets have a wide range. The average 12-month price target sits around $412.50 (as of November 20, 2025). However, there are more conservative targets, like the $337.11 average seen in late October, and more aggressive ones, with the highest target at $475.00. This range reflects the inherent volatility and risk tied to patent litigation and renewal cycles, which is the nature of the business.

The confidence is grounded in the company's projected financial performance for the 2025 fiscal year. The company's revenue guidance is strong, estimated between $820.0 million and $824.0 million.

Here's a snapshot of the analyst outlook:

Near-term risks center on the forward Price-to-Earnings (P/E) ratio, which stands at 34.70 as of September 2025, suggesting the market has lofty expectations for future earnings growth. You need to see that projected EPS growth materialize to justify the current valuation. The long-term earnings growth rate expectation is a healthy 15%.

Next step: Portfolio Manager: Review Q3 13F filings for any further large, active fund accumulation or distribution by Friday.