Exploring IDT Corporation (IDT) Investor Profile: Who’s Buying and Why?

You're looking at IDT Corporation, a name that's quietly pivoted from traditional telecom to a diversified fintech and cloud communications play, and you want to know which smart money is buying in and why right now. The short answer is that while giants like BlackRock, Inc. and Vanguard Group Inc. hold large stakes-with BlackRock owning over 1.7 million shares as of Q4 2025-the real story is the surge in institutional accumulation from funds like Marshall Wace LLP, which recently boosted its position by over 1,400%. Why the sudden interest? It's simple: the company's pivot is finally delivering clear financial results, pushing full-year fiscal 2025 adjusted EBITDA up 43% to a record $128.7 million.

This growth isn't coming from the legacy business; it's fueled by the high-margin segments, where the National Retail Solutions (NRS) platform saw recurring revenue jump 22% and the BOSS Money fintech segment's adjusted EBITDA climbed over threefold to $18.4 million in fiscal 2025. Plus, the net2phone segment is now leaning into AI, launching a HIPAA-compliant solution in November 2025, which is a defintely a new catalyst. Are these high-growth engines enough to justify the stock's market capitalization of around $1.21 billion, especially with a debt-free balance sheet and $254 million in cash and investments? Let's dig into the full investor profile to map the near-term opportunities and risks.

Who Invests in IDT Corporation (IDT) and Why?

You're looking at IDT Corporation (IDT) and trying to figure out who is buying the stock and what their game plan is. The direct takeaway is this: IDT's investor base is a mix of large, passive institutional money and focused, value-oriented funds, all attracted by the company's high-growth, high-margin Fintech and National Retail Solutions (NRS) segments, which are effectively subsidizing the legacy communications business.

The company's strong fiscal year 2025 (FY 2025) results-like the 43% surge in Adjusted EBITDA to $129 million-defintely make the case for a growth-and-value hybrid investment. It's a classic story of a conglomerate shedding its old skin for a new, higher-multiple one.

Key Investor Types: The Institutional vs. Retail Divide

When you look at IDT Corporation's shareholder structure, you see a clear split. Institutional investors-the big players like mutual funds, pension funds, and asset managers-hold the largest chunk, approximately 48.33% of the shares. Individual, or retail, investors hold a significant, but smaller, portion at around 20.81%. The rest is often held by insiders and other entities.

Here's the quick math on who owns the float:

• Institutional Holders: 48.33%. This group includes giants like BlackRock and Vanguard Group Inc, which often hold shares for passive index funds, meaning they buy because IDT is in the Russell 2000 or a similar index.
• Retail Investors: 20.81%. These are the individual investors who are typically betting on the upside of the NRS and BOSS Money segments.
• Hedge Funds & Other Active Managers: A smaller but influential portion. The data for Q2 2025 showed 121 institutional investors adding shares, while 83 decreased their positions, indicating active portfolio management and some disagreement on the near-term outlook.

The presence of firms like Renaissance Technologies LLC, a major quant fund, suggests that complex, short-term trading strategies are also at play, trying to capitalize on the stock's volatility and growth spikes.

Investment Motivations: Growth, Value, and Fintech

Investors are buying IDT Corporation for a few clear, compelling reasons that map directly to its business segments. It's not just one thing; it's a multi-faceted investment case.

The primary attraction is the explosive growth in the two key non-traditional segments:

• Fintech Growth (BOSS Money): The BOSS Money international money remittance service is a massive driver. The Fintech segment's revenue jumped by a staggering 40% in the first quarter of FY 2025. This growth is high-margin and is what justifies a higher valuation multiple for the overall company.
• Recurring Revenue (NRS): National Retail Solutions (NRS), which provides a point-of-sale network to independent retailers, is a sticky, recurring revenue business. Its recurring revenue was up 29% in 1Q25, showing strong adoption and network effects. Plus, the company is integrating AI solutions, which is a big buzzword for future growth.

Beyond growth, the company appeals to value investors and income-seekers:

• Dividends and Payout: IDT pays an annual dividend of $0.24 per share, which was recently boosted to $0.06 quarterly. The dividend payout ratio is quite low at 7.17%, which signals sustainability and room for future increases.
• Operational Efficiency: The 55% increase in FY 2025 Income from Operations to $100 million is a clear sign of improved profitability that value investors love to see. For a deeper dive into these segments, check out IDT Corporation (IDT): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: The Long-Term and the Quick Flip

The strategies employed by IDT Corporation's diverse investor base are just as varied as the investors themselves. You see a blend of classic long-term holding and more aggressive, short-term plays.

The most common strategy among fundamental investors is a 'sum-of-the-parts' valuation. They argue the market capitalization of $1.21 billion (as of October 2025) doesn't fully reflect the value of the high-growth segments. They are essentially waiting for a potential spin-off (a divestiture that separates one business unit into its own public company) of NRS or Fintech, which would likely 'unlock value' by giving those segments their own, higher stock multiple. The company is already returning capital to shareholders, having repurchased $8.5 million of its Class B common stock in 2025, a classic move to boost earnings per share (EPS) and signal undervaluation.

Institutional Ownership and Major Shareholders of IDT Corporation (IDT)

If you're looking at IDT Corporation (IDT), the first thing to understand is that institutional money-the big funds-holds the majority of the stock, which is a defintely a sign of professional validation, but also a source of volatility. As of the end of the 2025 fiscal year, approximately 59.34% of the company's shares were held by institutional investors, with a total of 15,449,962 shares held long by institutions.

Top Institutional Investors: Who Holds the Keys?

The institutional investor landscape for IDT Corporation is dominated by major index funds and quantitative managers, which is typical for a mid-cap stock. The largest shareholders are firms you know well, like BlackRock, Inc. and Vanguard Group Inc., whose positions often reflect their index-tracking mandates, but also include active management slices. Here's a look at the top holders based on their most recent major filings for the third quarter of fiscal year 2025 (ending September 30, 2025):

Here's the quick math: these top four institutions alone control a substantial block of shares, making their collective sentiment a major factor in the stock's performance.

Note that the value figures are based on the prior quarter's closing price for a conservative estimate, but they show the sheer magnitude of capital at stake.

Recent Shifts in Institutional Holdings

The most recent 13F filings for the third quarter of fiscal year 2025 show a mixed, but slightly cautious, picture. Over the last 12 months, institutional inflows totaled nearly $99.90 million from 95 buyers, significantly outpacing the $36.93 million in outflows from 44 sellers. Still, in the most recent quarter, some of the largest holders made slight trims.

We saw some major funds reducing their exposure, which is a signal to watch. For example, Dimensional Fund Advisors LP cut their stake by 89,142 shares, and BlackRock, Inc. reduced its position by 49,056 shares. But, to be fair, other institutions were aggressive buyers, seeing a value opportunity after the stock's recent decline following the Q4 FY25 earnings report.

• First Trust Advisors LP: Increased its holding by 319,180 shares, a massive 98.78% jump.
• Acadian Asset Management Llc: Added 153,955 shares, showing strong conviction.
• State Street Corp: Increased its stake by 26,422 shares, continuing a trend of accumulation.

This tells you the smart money isn't unified; some are taking profits or reducing risk, and others are buying the dip, believing the intrinsic value of $67.6 per share is still well above the current trading price.

Impact of Institutional Investors on Stock Price and Strategy

Institutional investors play a critical role in IDT Corporation, not just as shareholders, but as an unofficial check on management. Because IDT is a complex conglomerate-spanning Fintech (BOSS Money), National Retail Solutions (NRS), and communications-it remains 'undercovered by Wall Street analysts,' so institutional buying and selling often drives the narrative.

The sharp stock decline after the Q4 FY25 earnings release in September 2025 is a concrete example of this impact. Even though the consolidated results beat guidance, the market-driven by institutional expectations-focused on the forward guidance for FY26 Adjusted EBITDA growth of only 8.6%. This reaction shows that the institutional focus is now squarely on the growth deceleration in key segments like NRS, where Active POS growth slowed to 15.8% in Q4 FY25 from 17.6% in the prior quarter. They want to see the high-margin businesses like Fintech, which posted impressive FY25 Adjusted EBITDA of $18.4 million, continue to accelerate to offset any slowdown in the core business.

Their collective pressure indirectly pushes management to prioritize strategic actions that boost growth and simplify the story, which is why you see the company focusing on its Mission Statement, Vision, & Core Values of IDT Corporation (IDT) to better articulate its multi-segment value proposition. If the stock continues to trade at a low multiple-around 9.7 times Free Cash Flow-the activist investors who look for deep value will start to circle, demanding spin-offs or asset sales to realize the underlying value.

Finance: Track institutional accumulation/distribution daily to gauge market sentiment on the next earnings call.

Key Investors and Their Impact on IDT Corporation (IDT)

The investor profile for IDT Corporation (IDT) is a fascinating mix of passive institutional giants and smaller, active funds, but the crucial takeaway is this: the founder's control limits the power of even the largest shareholders to force major strategic shifts.

In fiscal year 2025, IDT Corporation delivered strong results, with Adjusted EBITDA hitting a record $128.7 million, a 43% increase year-over-year, which is the core reason institutions are buying in. You're seeing funds pile into a growth story driven by the National Retail Solutions (NRS) and BOSS Money segments, not a typical value play where activists push for a breakup.

The Institutional Heavyweights: Who Owns IDT and Why

Institutional investors collectively own a significant portion of IDT Corporation's stock, giving them a voice, but not necessarily the final say. These are typically passive funds that track indices or invest based on quantitative models, meaning they are buying the stock for its place in the market and its recent performance, not to agitate for change.

As of the most recent filings (Q3 2025), the top institutional holders are names you defintely recognize. Here's a quick look at the top three, reflecting the value they hold in the company:

• BlackRock, Inc.: Held 1,707,001 shares.
• Vanguard Group Inc: Held 1,307,604 shares.
• Renaissance Technologies Llc: Held 1,052,506 shares.

These large positions, with BlackRock and Vanguard leading the pack, anchor the stock's stability. They hold it because IDT Corporation's strong fundamentals-like the $100.4 million in Income from Operations in FY2025-make it a solid component in their broad portfolios and index funds. For a deeper dive into the numbers driving this interest, check out Breaking Down IDT Corporation (IDT) Financial Health: Key Insights for Investors.

Recent Investor Moves: Accumulation and Allocation

The recent moves by institutional players tell a story of selective accumulation and portfolio rebalancing. While the largest holders like BlackRock and Vanguard showed minor decreases in their holdings as of Q3 2025 filings, other funds were making aggressive moves, signaling confidence in the company's high-growth segments like BOSS Money and net2phone.

For example, First Trust Advisors Lp made a massive move, adding 319,180 shares, which was nearly a 98.78% increase in their position in the quarter ending September 30, 2025. Also notable was Millennium Management LLC, which added 130,569 shares in Q1 2025, a stunning 392.6% jump in their stake. This shows that some funds are making a clear, directional bet on IDT Corporation's future growth.

Here's the quick math: the company's decision to repurchase 221,823 shares for $10.1 million in fiscal year 2025 also acts as a form of investor activity, returning capital and boosting earnings per share (GAAP EPS rose to $3.01). That's a direct, tangible benefit to all shareholders.

The Activist Wall: Founder Control and Investor Influence

When you look at IDT Corporation, you have to understand the 'activist wall'-the structural barrier to external investor influence. Founder and Chairman Howard Jonas and his family control over 70% of the company's voting power through Class A shares. This is the single most important factor limiting the impact of any potential activist investor (a shareholder who buys a large stake to force management changes).

What this means is that while the institutional holders like Renaissance Technologies Llc might want a spin-off of the NRS segment to 'unlock value,' they simply don't have the votes to compel it. Instead, investor influence is channeled through supporting management's existing strategy:

• Capital Allocation: Investors support the current strategy of returning value via a quarterly cash dividend of $0.06 per share.
• Growth Focus: They are essentially endorsing the management's focus on organic growth in the fintech segment, which saw Income from Operations increase by 88% in FY2025.

What this estimate hides is the potential for a 'conglomerate discount'-where the market undervalues a company because its different business units (fintech, communications) are bundled together. But honestly, with the founder's firm control, the key action for you is to focus on the operational performance of the individual segments, as a forced breakup is off the table.

Market Impact and Investor Sentiment

The investor sentiment toward IDT Corporation (IDT) is best described as cautiously optimistic, driven by the strong performance of its high-growth, digital segments, National Retail Solutions (NRS) and BOSS Money, but tempered by the secular decline in Traditional Communications and recent insider selling.

For the fiscal year 2025, the company delivered a record consolidated Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of nearly $129 million, a 43% increase year-over-year, which is defintely the key metric institutional buyers are watching. This growth is fueling the positive outlook, but the market is also a realist. Insider sentiment, focusing on high-impact, open-market transactions, has been strongly negative, with executives selling approximately $7.11 million worth of stock over the last year, which is a signal you can't ignore.

• Institutional Ownership: 57.33% of shares held by institutions.
• Fiscal 2025 Revenue: $1,231.5 million.
• Fiscal 2025 Adjusted EBITDA: $128.7 million.

The high institutional ownership percentage shows that large, sophisticated funds have a strong foundational stake in the company's long-term strategy, which is focused on its fintech and communications solutions. You can read more about that strategy here: Mission Statement, Vision, & Core Values of IDT Corporation (IDT).

Recent Market Reactions to Ownership and Earnings

The stock market's response to IDT Corporation's recent performance shows investors are prioritizing the growth story over short-term earnings volatility. When the company reported its Q4 and full fiscal year 2025 results in September 2025, the stock price actually increased by 2.49% in after-hours trading, even though the GAAP EPS of $0.67 missed the prior year's $1.45 (due to a one-time tax benefit in the previous year).

Here's the quick math: Investors looked past the GAAP net income decrease to $16.9 million from $36.8 million and focused on the operational strength: a 55% surge in income from operations to $100.4 million for the full year. That's a clear signal that the market is rewarding the operational leverage and growth in the NRS and BOSS Money segments. The recent launch of net2phone's HIPAA-compliant AI solution in November 2025 is another catalyst the market is watching, as it aligns with the high-margin, recurring revenue narrative.

The institutional moves in the third quarter of 2025 were mixed, showing a rotation among large funds, but the overall institutional presence remains dominant. For instance, as of June 2025 filings, BlackRock increased its position by 7% to hold approximately 1.8 million shares valued at $120 million, while Dimensional Fund Advisors decreased its stake by 6%.

Analyst Perspectives on Key Investors' Impact

The consensus from the analyst community is that the major institutional investors, like BlackRock and Vanguard Group, are buying into the sum-of-the-parts valuation story, where the growth segments are worth far more than the current stock price implies. One analyst has a median price target of $80.00, suggesting a potential upside of over 60% from the November 2025 trading price of around $49.79.

This bullish perspective is directly tied to the performance of the growth segments in fiscal 2025:

• NRS Recurring Revenue: Increased 27% to $122.6 million.
• BOSS Money Digital Revenue: Grew 36% to $99.0 million.
• Fintech Segment Income from Operations: Surged to $15.4 million from a loss of $0.1 million in FY 2024.

What this estimate hides is the execution risk in the Traditional Communications segment, which, while generating a strong $70 million in free cash flow in fiscal 2025, is a declining business. The big investors are essentially betting that the growth of the digital businesses will continue to outpace the decline of the legacy voice business, eventually leading to a higher multiple for the entire company. The analyst narrative is clear: the large institutional holders are long-term players who see the current valuation as a deep discount to the intrinsic value of the high-growth segments.