Lawrence Liren Chen, President and CEO of InterDigital , Inc. (NASDAQ:IDCC), has sold a substantial portion of his holdings in the company. The sale comes as InterDigital's stock has delivered an impressive 76.6% return year-to-date, with the company maintaining strong financial health according to InvestingPro analysis. According to a recent SEC filing, Chen sold a total of 5,891 shares on December 18, 2024, amounting to approximately $1.15 million.
The transactions were conducted in three separate batches. The first batch involved the sale of 1,273 shares at an average price of $194.52 per share, totaling $247,623. The second batch comprised 4,126 shares sold at an average price of $195.52, amounting to $806,715. The final transaction involved 492 shares sold at an average price of $196.01, totaling $96,436.
These sales were made pursuant to a pre-established Rule 10b5-1 trading plan, which Chen adopted on June 21, 2024. Following these transactions, Chen retains ownership of 164,543.0741 shares in the company.
In other recent news, InterDigital has reported a strong third quarter in 2024, with revenues reaching approximately $129 million, surpassing the company's guidance. This performance was primarily driven by new licensing agreements, including a significant deal with Oppo Group that also resolved all pending litigation. The company now holds agreements with the top four smartphone manufacturers, covering a substantial portion of the global market.
InterDigital has raised its 2024 revenue guidance to a midpoint of $860 million, an increase of $145 million. The adjusted EBITDA for the quarter was also higher than expected at $65 million, and the company reported a robust cash generation, ending the quarter with over $800 million in cash.
Looking forward, InterDigital aims for $1 billion in annual recurring revenue by 2030. The company anticipates a record recurring revenue of approximately $118 million in Q4 2024 and an annual recurring revenue of about $470 million, an $80 million increase.
These developments indicate a strong momentum for InterDigital, especially with key contract renewals on the horizon. The company is optimistic about leveraging recent deals to accelerate licensing opportunities with other manufacturers, including Vivo and Huawei.
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