QUALCOMM (NASDAQ:QCOM) Stock Rating Lowered by Zacks Investment Research

QUALCOMM (NASDAQ:QCOM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday, Zacks.com reports. They presently have a $85.00 price target on the wireless technology company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 8.01% from the stock’s previous close.

According to Zacks, “Despite coronavirus-induced adversities, Qualcomm reported solid second-quarter fiscal 2020 results, with healthy year-over-year top-line growth, primarily driven by the ramp-up in 5G-enabled chips. The company is focused on retaining its position in the chipset market and mobile connectivity with several technological achievements and innovative product launches. Qualcomm is also likely to help users experience seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with best-in-class security. However, the company is likely to face softness in demand from China with Huawei gaining prominence in the local market and coronavirus impacting sales. It expects macroeconomic uncertainty to have a radical impact on device shipment. Competition from low-cost manufacturers is another concern.”

A number of other research analysts have also recently issued reports on QCOM. Citigroup reduced their price objective on QUALCOMM from $108.00 to $98.00 and set a “buy” rating on the stock in a research note on Monday, March 30th. Tigress Financial reaffirmed a “buy” rating on shares of QUALCOMM in a research note on Friday, April 17th. ValuEngine raised QUALCOMM from a “sell” rating to a “hold” rating in a research note on Tuesday, March 3rd. Charter Equity reaffirmed a “hold” rating on shares of QUALCOMM in a research note on Thursday, April 30th. Finally, BNP Paribas lowered shares of QUALCOMM from an “outperform” rating to an “underperform” rating and set a $65.00 target price for the company. in a report on Tuesday, March 24th. Five investment analysts have rated the stock with a sell rating, eight have issued a hold rating, sixteen have assigned a buy rating and one has issued a strong buy rating to the company. QUALCOMM currently has an average rating of “Hold” and a consensus price target of $88.57.

QCOM traded up $0.70 during trading on Thursday, reaching $78.70. The stock had a trading volume of 5,471,251 shares, compared to its average volume of 10,017,896. The business has a 50-day moving average of $75.19 and a 200-day moving average of $82.06. QUALCOMM has a one year low of $58.00 and a one year high of $96.17. The stock has a market cap of $87.74 billion, a PE ratio of 23.28, a PEG ratio of 1.38 and a beta of 1.36. The company has a debt-to-equity ratio of 4.42, a quick ratio of 1.39 and a current ratio of 1.57.

QUALCOMM (NASDAQ:QCOM) last announced its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $0.88 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.79 by $0.09. QUALCOMM had a return on equity of 69.92% and a net margin of 16.36%. The firm had revenue of $5.21 billion for the quarter, compared to analysts’ expectations of $5.04 billion. During the same period last year, the firm earned $0.77 earnings per share. The company’s revenue for the quarter was up 6.6% compared to the same quarter last year. Equities research analysts forecast that QUALCOMM will post 3.08 EPS for the current fiscal year.

In other QUALCOMM news, CAO Erin L. Polek sold 1,646 shares of the firm’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $79.47, for a total value of $130,807.62. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.12% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. Klingenstein Fields & Co. LLC lifted its holdings in shares of QUALCOMM by 2.0% during the fourth quarter. Klingenstein Fields & Co. LLC now owns 6,267 shares of the wireless technology company’s stock valued at $553,000 after purchasing an additional 120 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in shares of QUALCOMM by 1.7% during the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 7,508 shares of the wireless technology company’s stock valued at $508,000 after purchasing an additional 125 shares during the last quarter. Plancorp LLC lifted its holdings in shares of QUALCOMM by 2.1% during the fourth quarter. Plancorp LLC now owns 6,218 shares of the wireless technology company’s stock valued at $549,000 after purchasing an additional 128 shares during the last quarter. Paulson Wealth Management Inc. lifted its holdings in shares of QUALCOMM by 2.3% during the first quarter. Paulson Wealth Management Inc. now owns 5,948 shares of the wireless technology company’s stock valued at $452,000 after purchasing an additional 131 shares during the last quarter. Finally, Private Portfolio Partners LLC lifted its holdings in shares of QUALCOMM by 3.6% during the first quarter. Private Portfolio Partners LLC now owns 3,869 shares of the wireless technology company’s stock valued at $261,000 after purchasing an additional 135 shares during the last quarter. Hedge funds and other institutional investors own 76.65% of the company’s stock.

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.

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