Qualcomm Inc. (QCOM) Lowered to Hold at Zacks Investment Research
Qualcomm Inc. (NASDAQ:QCOM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
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.”
Other equities research analysts have also issued research reports about the company. Vetr raised Qualcomm from a “hold” rating to a “buy” rating and set a $57.12 price objective for the company in a research note on Tuesday, June 7th. TheStreet raised Qualcomm from a “hold” rating to a “buy” rating in a research note on Friday, May 27th. Cowen and Company reaffirmed a “buy” rating and set a $60.00 price target on shares of Qualcomm in a research note on Tuesday, May 24th. KeyCorp reaffirmed a “buy” rating and set a $59.00 price target on shares of Qualcomm in a research note on Wednesday, July 6th. Finally, Morgan Stanley reaffirmed a “buy” rating on shares of Qualcomm in a research note on Wednesday, June 15th. One equities research analyst has rated the stock with a sell rating, fifteen have given a hold rating, twenty-one have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $62.02.
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Qualcomm (NASDAQ:QCOM) opened at 62.70 on Wednesday. The stock’s 50 day moving average price is $62.31 and its 200-day moving average price is $55.64. Qualcomm has a 12-month low of $42.24 and a 12-month high of $63.70. The firm has a market cap of $92.40 billion, a PE ratio of 18.36 and a beta of 1.22.
Qualcomm (NASDAQ:QCOM) last posted its quarterly earnings data on Wednesday, July 20th. The wireless technology company reported $1.16 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.97 by $0.19. The company earned $5.60 billion during the quarter, compared to analyst estimates of $5.57 billion. Qualcomm had a return on equity of 17.70% and a net margin of 22.64%. The firm’s quarterly revenue was up 2.9% on a year-over-year basis. During the same quarter last year, the company earned $0.99 earnings per share. Equities research analysts anticipate that Qualcomm will post $4.29 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 21st. Shareholders of record on Wednesday, August 31st will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 3.38%. The ex-dividend date is Monday, August 29th. Qualcomm’s dividend payout ratio (DPR) is presently 62.17%.
In related news, President Derek K. Aberle sold 22,653 shares of the stock in a transaction dated Wednesday, July 27th. The shares were sold at an average price of $61.95, for a total value of $1,403,353.35. Following the completion of the transaction, the president now owns 69,234 shares of the company’s stock, valued at approximately $4,289,046.30. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Matthew S. Grob sold 33,000 shares of the stock in a transaction dated Thursday, July 21st. The shares were sold at an average price of $59.85, for a total transaction of $1,975,050.00. The disclosure for this sale can be found here. Company insiders own 0.24% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Peachtree Investment Advisors Inc. increased its position in shares of Qualcomm by 1.9% in the first quarter. Peachtree Investment Advisors Inc. now owns 28,670 shares of the wireless technology company’s stock worth $1,466,000 after buying an additional 525 shares during the last quarter. Lau Associates LLC increased its position in shares of Qualcomm by 2.9% in the first quarter. Lau Associates LLC now owns 23,357 shares of the wireless technology company’s stock worth $1,194,000 after buying an additional 650 shares during the last quarter. CENTRAL TRUST Co acquired a new position in shares of Qualcomm during the first quarter worth approximately $2,312,000. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its position in shares of Qualcomm by 8.5% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 344,236 shares of the wireless technology company’s stock worth $17,604,000 after buying an additional 27,010 shares during the last quarter. Finally, Capstone Asset Management Co. increased its position in shares of Qualcomm by 74.1% in the first quarter. Capstone Asset Management Co. now owns 351,265 shares of the wireless technology company’s stock worth $17,964,000 after buying an additional 149,533 shares during the last quarter. 78.05% of the stock is owned by hedge funds and other institutional investors.
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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