The stock has not done much over the last one month, and higher levels have seen selling pressure. The last earnings were much better than estimates, but the adverse court ruling led to a crash and dampened the sentiments significantly. The stock has recovered a bit after crash, but the volumes have remained low. There is no momentum on either side, and the stock may be looking for cues and triggers. The earnings which are expected to be released on October 30 are expected to provide the next trigger for the stock. It will determine the short term trend of the stock. If the company is able to beat analyst estimates again, then the stock may resume its uptrend. The high level of shorts will also add to buying pressure in case there is a significant positive surprise. On September 13, the level of shorts was high at around 9.3% (3.79 million shares). Considering the 3 month average volume of 307K, the number of days to cover is a bit high. The consensus rating of the stock is buy and the average price target is $49 which indicates significant upside potential for the stock from current levels. Thompson Reuters recently upgraded the stock to buy. The company is expected to do well in the long term based on the expected growth in the market. The patents provide it with a stream of licensing revenues. Companies are getting more conscious about optimizing the value of their patents, and the last couple of years have been particularly good. Spherix (SPEX) has recently filed lawsuits against companies like T-Mobile (TMUS) and Vtech (VTKLY) to enforce its patent rights. The good part is that Interdigital is a cash rich company with low debt. That increases the possibilities as far as future patent acquisitions and research and development is concerned.