Qualcomm Inc. (QCOM) Downgraded to “Hold” at Zacks Investment Research
According to Zacks, “Qualcomm, undisputed leader of the global wireless baseband chipset market, is expected to gain significantly in China in the near term through signing of new patent license agreements with Chinese smartphone makers. The company is actively involved in the production of chipsets for the 5G standard and is sharing partnership with U.S. telecom behemoths like Verizon and Ericsson for the same, which may propel growth in future. Moreover, Qualcomm is widening its presence in adjacent opportunities, including automotive, networking, mobile computing, and IoT and these strategies bode well for long-term growth. However, regulatory proceedings against Qualcomm are a major headwind. Also, the company is suffering from increased competition from MediaTek and Intel and has projected a soft revenue outlook for 2016.”
QCOM has been the subject of several other research reports. Vetr downgraded Qualcomm from a strong-buy rating to a buy rating and set a $69.01 price objective for the company. in a report on Monday. Standpoint Research raised Qualcomm from a hold rating to a buy rating and set a $72.00 price target for the company in a report on Thursday, August 25th. Bank of America Corp. reaffirmed a buy rating on shares of Qualcomm in a report on Monday, July 18th. Mizuho raised their price target on Qualcomm from $56.00 to $59.00 and gave the company a neutral rating in a report on Tuesday, September 6th. Finally, Morgan Stanley reaffirmed an overweight rating and set a $65.00 price target on shares of Qualcomm in a report on Tuesday. One equities research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, twenty-one have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of Buy and a consensus price target of $62.02.
Shares of Qualcomm (NASDAQ:QCOM) traded up 0.63% during midday trading on Wednesday, reaching $63.97. 637,583 shares of the company’s stock traded hands. The stock has a 50 day moving average of $62.39 and a 200-day moving average of $55.70. Qualcomm has a 52-week low of $42.24 and a 52-week high of $64.00. The stock has a market cap of $94.27 billion, a price-to-earnings ratio of 18.73 and a beta of 1.22.
Qualcomm (NASDAQ:QCOM) last released its quarterly earnings data on Wednesday, July 20th. The wireless technology company reported $1.16 EPS for the quarter, beating the consensus estimate of $0.97 by $0.19. The company earned $5.60 billion during the quarter, compared to the consensus estimate of $5.57 billion. Qualcomm had a return on equity of 17.70% and a net margin of 22.64%. The firm’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.99 EPS. On average, equities research analysts expect that Qualcomm will post $4.30 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Wednesday, September 21st. Stockholders of record on Wednesday, August 31st were given a dividend of $0.53 per share. The ex-dividend date of this dividend was Monday, August 29th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 3.33%. Qualcomm’s dividend payout ratio is presently 62.17%.
In related news, EVP James H. Thompson sold 10,000 shares of the stock in a transaction dated Friday, September 9th. The stock was sold at an average price of $60.94, for a total transaction of $609,400.00. Following the sale, the executive vice president now owns 59,497 shares of the company’s stock, valued at approximately $3,625,747.18. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Matthew S. Grob sold 33,000 shares of the stock in a transaction dated Thursday, July 21st. The stock was sold at an average price of $59.85, for a total value of $1,975,050.00. The disclosure for this sale can be found here. Insiders own 0.24% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Krilogy Financial LLC boosted its stake in shares of Qualcomm by 61.8% in the second quarter. Krilogy Financial LLC now owns 2,071 shares of the wireless technology company’s stock worth $111,000 after buying an additional 791 shares during the period. Pinkerton Retirement Specialists LLC boosted its stake in shares of Qualcomm by 3,479.3% in the second quarter. Pinkerton Retirement Specialists LLC now owns 2,076 shares of the wireless technology company’s stock worth $111,000 after buying an additional 2,018 shares during the period. CapWealth Advisors LLC boosted its stake in shares of Qualcomm by 37.8% in the first quarter. CapWealth Advisors LLC now owns 2,188 shares of the wireless technology company’s stock worth $112,000 after buying an additional 600 shares during the period. Joel Isaacson & Co. LLC boosted its stake in shares of Qualcomm by 4.9% in the second quarter. Joel Isaacson & Co. LLC now owns 2,219 shares of the wireless technology company’s stock worth $119,000 after buying an additional 103 shares during the period. Finally, Americafirst Capital Management LLC bought a new stake in shares of Qualcomm during the second quarter worth about $121,000. 78.05% of the stock is currently owned by institutional investors and hedge funds.
Qualcomm Company Profile
QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications.
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