Traders Buy QUALCOMM (QCOM) on Weakness

Investors purchased shares of QUALCOMM, Inc. (NASDAQ:QCOM) on weakness during trading hours on Tuesday. $54.55 million flowed into the stock on the tick-up and $25.62 million flowed out of the stock on the tick-down, for a money net flow of $28.93 million into the stock. Of all equities tracked, QUALCOMM had the 11th highest net in-flow for the day. QUALCOMM traded down ($0.85) for the day and closed at $55.33

Several research firms have recently weighed in on QCOM. Wells Fargo & Co began coverage on shares of QUALCOMM in a research report on Friday, March 16th. They set a “market perform” rating for the company. Morgan Stanley began coverage on shares of QUALCOMM in a research report on Monday, March 19th. They set an “underweight” rating and a $55.00 price objective for the company. Deutsche Bank began coverage on shares of QUALCOMM in a research report on Thursday, March 15th. They set a “hold” rating and a $60.00 price objective for the company. BidaskClub upgraded shares of QUALCOMM from a “sell” rating to a “hold” rating in a research report on Saturday, May 26th. Finally, Cowen began coverage on shares of QUALCOMM in a research report on Thursday, May 17th. They set a “market perform” rating and a $58.00 price objective for the company. Three analysts have rated the stock with a sell rating, twelve have given a hold rating and ten have assigned a buy rating to the company. The company has an average rating of “Hold” and an average price target of $63.91.

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The company has a market cap of $83.22 billion, a price-to-earnings ratio of 14.62, a price-to-earnings-growth ratio of 1.80 and a beta of 1.51. The company has a debt-to-equity ratio of 0.81, a quick ratio of 3.46 and a current ratio of 3.60.

QUALCOMM (NASDAQ:QCOM) last released its quarterly earnings data on Wednesday, April 25th. The wireless technology company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.70 by $0.10. QUALCOMM had a negative net margin of 20.16% and a positive return on equity of 16.48%. The firm had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.21 billion. During the same period last year, the firm earned $1.34 earnings per share. The business’s quarterly revenue was down 13.3% compared to the same quarter last year. equities analysts predict that QUALCOMM, Inc. will post 2.71 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 20th. Shareholders of record on Wednesday, May 30th were paid a $0.62 dividend. This represents a $2.48 dividend on an annualized basis and a dividend yield of 4.48%. This is a positive change from QUALCOMM’s previous quarterly dividend of $0.57. The ex-dividend date was Tuesday, May 29th. QUALCOMM’s dividend payout ratio (DPR) is 65.61%.

QUALCOMM declared that its board has authorized a share repurchase plan on Wednesday, May 9th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the wireless technology company to repurchase up to 12.7% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

In other QUALCOMM news, President Cristiano R. Amon sold 16,082 shares of the firm’s stock in a transaction on Tuesday, May 8th. The shares were sold at an average price of $53.04, for a total value of $852,989.28. Following the transaction, the president now directly owns 37,233 shares of the company’s stock, valued at $1,974,838.32. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Donald J. Rosenberg sold 11,670 shares of the firm’s stock in a transaction on Tuesday, May 8th. The shares were sold at an average price of $53.01, for a total transaction of $618,626.70. The disclosure for this sale can be found here. Insiders sold 30,255 shares of company stock worth $1,612,477 over the last ninety days. Insiders own 0.24% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Commonwealth Financial Corp PA lifted its position in shares of QUALCOMM by 6.6% during the fourth quarter. First Commonwealth Financial Corp PA now owns 13,353 shares of the wireless technology company’s stock valued at $855,000 after purchasing an additional 822 shares in the last quarter. Dorsey & Whitney Trust CO LLC increased its holdings in QUALCOMM by 1.8% during the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 47,706 shares of the wireless technology company’s stock worth $3,055,000 after buying an additional 840 shares during the last quarter. Glenview Trust Co increased its holdings in QUALCOMM by 8.3% during the first quarter. Glenview Trust Co now owns 12,083 shares of the wireless technology company’s stock worth $669,000 after buying an additional 921 shares during the last quarter. Penserra Capital Management LLC increased its holdings in QUALCOMM by 24.1% during the first quarter. Penserra Capital Management LLC now owns 4,864 shares of the wireless technology company’s stock worth $269,000 after buying an additional 944 shares during the last quarter. Finally, Intrust Bank NA increased its holdings in QUALCOMM by 19.4% during the fourth quarter. Intrust Bank NA now owns 5,868 shares of the wireless technology company’s stock worth $376,000 after buying an additional 953 shares during the last quarter. 76.91% of the stock is currently owned by institutional investors.

About QUALCOMM

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.