Traders Buy QUALCOMM (QCOM) on Weakness Following Analyst Downgrade
Traders purchased shares of QUALCOMM, Inc. (NASDAQ:QCOM) on weakness during trading hours on Tuesday after BidaskClub downgraded the stock from a buy rating to a hold rating. $465.70 million flowed into the stock on the tick-up and $80.64 million flowed out of the stock on the tick-down, for a money net flow of $385.06 million into the stock. Of all companies tracked, QUALCOMM had the 2nd highest net in-flow for the day. QUALCOMM traded down ($0.84) for the day and closed at $72.74
Other analysts also recently issued reports about the company. Cowen increased their price objective on QUALCOMM from $58.00 to $64.00 and gave the company a “market perform” rating in a report on Thursday, July 26th. Rosenblatt Securities upgraded QUALCOMM from a “neutral” rating to a “buy” rating and increased their price target for the stock from $56.00 to $70.00 in a report on Monday, August 20th. KeyCorp increased their price target on QUALCOMM from $65.00 to $72.00 and gave the stock an “overweight” rating in a report on Thursday, July 26th. BMO Capital Markets increased their price target on QUALCOMM to $64.00 and gave the stock a “market perform” rating in a report on Thursday, July 26th. Finally, Summit Insights upgraded QUALCOMM from a “hold” rating to a “buy” rating in a report on Thursday, July 26th. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and fourteen have given a buy rating to the stock. QUALCOMM has a consensus rating of “Buy” and an average price target of $70.92.
In other QUALCOMM news, EVP Alexander H. Rogers sold 828 shares of the stock in a transaction dated Friday, July 27th. The stock was sold at an average price of $63.40, for a total transaction of $52,495.20. Following the completion of the sale, the executive vice president now directly owns 7,170 shares in the company, valued at approximately $454,578. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.24% of the company’s stock.
The company has a quick ratio of 2.62, a current ratio of 2.73 and a debt-to-equity ratio of 0.67. The company has a market cap of $108.10 billion, a P/E ratio of 19.31, a PEG ratio of 2.17 and a beta of 1.66.
QUALCOMM (NASDAQ:QCOM) last issued its earnings results on Wednesday, July 25th. The wireless technology company reported $1.01 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.71 by $0.30. The company had revenue of $5.60 billion during the quarter, compared to the consensus estimate of $5.19 billion. QUALCOMM had a positive return on equity of 19.06% and a negative net margin of 18.41%. The firm’s revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period last year, the business posted $0.83 EPS. equities research analysts forecast that QUALCOMM, Inc. will post 3.11 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 26th. Investors of record on Wednesday, September 5th were given a $0.62 dividend. The ex-dividend date of this dividend was Tuesday, September 4th. This represents a $2.48 annualized dividend and a yield of 3.46%. QUALCOMM’s payout ratio is 65.61%.
QUALCOMM declared that its Board of Directors has authorized a stock buyback plan on Thursday, July 26th that allows the company to repurchase $30.00 billion in outstanding shares. This repurchase authorization allows the wireless technology company to buy up to 34.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board believes its shares are undervalued.
QUALCOMM Company Profile (NASDAQ:QCOM)
QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.
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