Mizuho downgraded shares of QUALCOMM (NASDAQ:QCOM) from a buy rating to a neutral rating in a research report sent to investors on Thursday, AnalystRatings.com reports. Mizuho currently has $65.00 price target on the wireless technology company’s stock, down from their previous price target of $90.00.
“We are moving to the sidelines given the uncertainty with Judge Koh’s FTC ruling on QCOM. We believe a potential change in the license model to royalty as a % of chip” ASP at ~$50 versus handset” ASP at ~$300 could be a SIGNIFICANT 50+% downside to EPS. The limited clarity as the case goes to appeals to the Ninth District and potentially the Supreme Court, and uncertainty if recent license agreements with China NDRC can still be upheld, inserts a significant overhang on QCOM. and adjusting PT to ~$65 until we get clarity. QCOM has handily outperformed the SOX by 540 bps YTD even with the pullback.”,” the firm’s analyst commented.
A number of other brokerages have also recently commented on QCOM. Canaccord Genuity lifted their target price on shares of QUALCOMM from $89.00 to $105.00 and gave the stock a buy rating in a research report on Thursday, May 2nd. Zacks Investment Research upgraded shares of QUALCOMM from a sell rating to a hold rating in a research report on Monday, May 6th. Deutsche Bank reiterated a hold rating on shares of QUALCOMM in a research report on Monday, April 29th. Bank of America reiterated a neutral rating and issued a $90.00 target price (up previously from $71.00) on shares of QUALCOMM in a research report on Tuesday, April 30th. Finally, Rosenblatt Securities reiterated a buy rating and issued a $84.00 target price on shares of QUALCOMM in a research report on Thursday, May 2nd. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has a consensus rating of Buy and an average price target of $80.05.
QUALCOMM (NASDAQ:QCOM) last issued its earnings results on Wednesday, May 1st. The wireless technology company reported $0.61 EPS for the quarter, topping analysts’ consensus estimates of $0.54 by $0.07. The company had revenue of $4.88 billion for the quarter, compared to analysts’ expectations of $4.83 billion. QUALCOMM had a net margin of 11.57% and a return on equity of 56.69%. The firm’s revenue was down 5.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.80 EPS. As a group, equities analysts forecast that QUALCOMM will post 3.32 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, June 27th. Stockholders of record on Thursday, June 6th will be paid a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 3.75%. The ex-dividend date of this dividend is Wednesday, June 5th. QUALCOMM’s payout ratio is 77.74%.
In other news, major shareholder Inc/De Qualcomm sold 848,877 shares of QUALCOMM stock in a transaction dated Tuesday, April 23rd. The shares were sold at an average price of $34.20, for a total transaction of $29,031,593.40. Following the sale, the insider now owns 848,877 shares of the company’s stock, valued at approximately $29,031,593.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Cristiano R. Amon sold 13,466 shares of QUALCOMM stock in a transaction dated Tuesday, April 16th. The shares were sold at an average price of $60.00, for a total transaction of $807,960.00. Following the sale, the president now directly owns 37,614 shares in the company, valued at approximately $2,256,840. The disclosure for this sale can be found here. Insiders have sold a total of 949,832 shares of company stock worth $37,443,538 in the last ninety days. Insiders own 0.11% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the company. Federated Investors Inc. PA grew its stake in QUALCOMM by 91.5% in the third quarter. Federated Investors Inc. PA now owns 94,917 shares of the wireless technology company’s stock valued at $6,837,000 after purchasing an additional 45,360 shares in the last quarter. Boston Advisors LLC boosted its stake in shares of QUALCOMM by 17.5% during the 4th quarter. Boston Advisors LLC now owns 4,025 shares of the wireless technology company’s stock worth $229,000 after acquiring an additional 600 shares in the last quarter. Lavaca Capital LLC bought a new stake in shares of QUALCOMM during the 4th quarter worth about $25,000. Lincoln Capital Corp bought a new stake in shares of QUALCOMM during the 4th quarter worth about $1,587,000. Finally, Boenning & Scattergood Inc. boosted its stake in shares of QUALCOMM by 3.1% during the 4th quarter. Boenning & Scattergood Inc. now owns 6,537 shares of the wireless technology company’s stock worth $372,000 after acquiring an additional 197 shares in the last quarter. 77.95% of the stock is currently owned by hedge funds and other institutional investors.
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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