Qualcomm Inc. (QCOM) Rating 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 report issued 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.”
Several other equities analysts have also recently issued reports on QCOM. Royal Bank Of Canada boosted their price target on shares of Qualcomm from $55.00 to $59.00 and gave the company an “outperform” rating in a research report on Thursday, July 21st. Vetr cut shares of Qualcomm from a “strong-buy” rating to a “buy” rating and set a $69.01 price objective on the stock. in a report on Monday. TheStreet upgraded shares of Qualcomm from a “hold” rating to a “buy” rating in a report on Friday, May 27th. Nomura restated a “neutral” rating and issued a $55.00 price objective on shares of Qualcomm in a report on Thursday, July 21st. Finally, Sanford C. Bernstein restated a “hold” rating on shares of Qualcomm in a report on Thursday, September 8th. One analyst has rated the stock with a sell rating, fifteen have given 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.
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Qualcomm (NASDAQ:QCOM) opened at 62.70 on Wednesday. The company has a 50-day moving average of $62.31 and a 200 day moving average of $55.64. The company has a market cap of $92.40 billion, a PE ratio of 18.36 and a beta of 1.22. Qualcomm has a 12 month low of $42.24 and a 12 month high of $63.70.
Qualcomm (NASDAQ:QCOM) last announced its quarterly earnings results on Wednesday, July 20th. The wireless technology company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.97 by $0.19. Qualcomm had a net margin of 22.64% and a return on equity of 17.70%. The company had revenue of $5.60 billion for the quarter, compared to analysts’ expectations of $5.57 billion. During the same quarter in the previous year, the company earned $0.99 earnings per share. Qualcomm’s quarterly revenue was up 2.9% on a year-over-year basis. On average, equities analysts forecast that Qualcomm will post $4.29 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 21st. Stockholders of record on Wednesday, August 31st will be issued a $0.53 dividend. The ex-dividend date of this dividend is Monday, August 29th. This represents a $2.12 annualized dividend and a dividend yield of 3.38%. Qualcomm’s dividend payout ratio is currently 62.17%.
In other news, EVP Matthew S. Grob sold 33,000 shares of the business’s stock in a transaction dated Thursday, July 21st. The shares were sold at an average price of $59.85, for a total value of $1,975,050.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Raymond V. Dittamore sold 7,000 shares of the business’s stock in a transaction dated Friday, July 22nd. The shares were sold at an average price of $61.00, for a total transaction of $427,000.00. Following the completion of the sale, the director now owns 12,765 shares of the company’s stock, valued at approximately $778,665. The disclosure for this sale can be found here. 0.24% of the stock is currently owned by insiders.
Large investors have recently bought and sold shares of the stock. Monroe Bank & Trust MI raised its stake in Qualcomm by 2.6% in the first quarter. Monroe Bank & Trust MI now owns 15,433 shares of the wireless technology company’s stock valued at $789,000 after buying an additional 389 shares in the last quarter. Webster Bank N. A. raised its stake in Qualcomm by 0.5% in the first quarter. Webster Bank N. A. now owns 37,154 shares of the wireless technology company’s stock valued at $1,900,000 after buying an additional 175 shares in the last quarter. Prospera Financial Services Inc acquired a new stake in Qualcomm during the first quarter valued at approximately $255,000. Capital Asset Advisory Services LLC raised its stake in Qualcomm by 2.1% in the first quarter. Capital Asset Advisory Services LLC now owns 16,958 shares of the wireless technology company’s stock valued at $867,000 after buying an additional 355 shares in the last quarter. Finally, Integrated Investment Consultants LLC raised its stake in Qualcomm by 92.5% in the first quarter. Integrated Investment Consultants LLC now owns 12,902 shares of the wireless technology company’s stock valued at $652,000 after buying an additional 6,200 shares in the last quarter. Institutional investors and hedge funds own 78.05% of the company’s stock.
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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