The recent news regarding Rodgers Brothers Inc’s significant reduction in its stake in QUALCOMM Incorporated (NASDAQ:QCOM) has caused a stir amongst investors. The institutional investor reportedly sold 7,133 shares during the fourth quarter, which resulted in a 28.9% decrease in its shares of the wireless technology giant. At the end of the period, their remaining holdings totaled 17,556 shares, which were worth $1,930,000.
Despite the drop-off from Rodgers Brothers Inc., many are still optimistic about QCOM’s prospects given that it is one of the most dominant players in digital telecommunications. QUALCOMM has positioned itself well by providing integrated circuits and system software based on technologies for voice and data communications, networking, application processing, multimedia products and global positioning systems.
The company’s three main operation segments consist of Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives (QSI). Each segment targeted to serve specific customers such as manufacturers who require access to QCT products or those seeking to license quality mobile devices.
Shares of NASDAQ:QCOM had an opening price of $122.14 on Tuesday. The company maintains decent liquidity ratios with a debt-to-equity ratio of 0.79; quick ratios at 1.55 and current ratios at 2.42 respectively indicate its strong financial performance compared to similar companies globally. Its fifty-day moving average price hovers around $113.70 while that for the previous two hundred days was $119.18; there’s cautious optimism among investors about how these metrics could impact shareholder value going forward.
QUALCOMM stock currently trades between a fifty-two week low of $101.47 and a highmark of $156.66 with a market capitalization priced at over $136 billion dollars making it one of largest telco firms listed on NASDAQ today.
It carries an attractive price-to-earnings ratio of 13.09 and a PEG at 1.20, which provides an indication that QCOM could be undervalued relative to its intrinsic value compared to the industry-wide averages.
In conclusion, despite Rodgers Brothers Inc’s lowering stake in QCOM over the past period, QUALCOMM Incorporated remains one of the leading digital telecommunications companies globally with strong financial metrics and performance statistics. Its position within the market will make it an exciting prospect for new investors looking to leverage long-term opportunities consistent with their investment portfolio strategy.
[bs_slider_forecast ticker=”QCOM”]
Hedge Funds & Institutional Investors Make Changes to Holdings in Qualcomm
Qualcomm, a technological powerhouse in digital telecommunications, has seen a flurry of changes to its positions from major hedge funds and institutional investors. According to reports, Sycomore Asset Management raised its position by 150%, owning 230 shares of Qualcomm’s stock worth $25,000 after making additional purchases. New England Capital Financial Advisors LLC, Corrado Advisors LLC and Glassy Mountain Advisors Inc. also purchased new stakes in the company during Q4 of 2016.
Although several analysts issued “hold” ratings on Qualcomm shares, eighteen others suggested a “buy” rating for the stocks that were also upgraded by StockNews.com from “hold” to “buy.”
The company’s divisions are divided into Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives (QSI). QCT is responsible for developing integrated circuits and system software based on the latest technologies whilst providing multimedia applications processing, voice and data communication networks; whereas QTL focuses solely on licensing operations.
For Q2 2017, the company released its revenue results of $9.28bn versus an expectation of $9.08bn – however it fell short with regards to earnings per share which were expected at $1.83 but only reached $1.69.
Nevertheless, QualComm had a net margin of 25% plus an ROI equating to 56%.
Qualcomm is expected to unveil an earnings per share figure around about $6.36 for this current fiscal year supported with quarterly dividends which have been steadily growing in value since prior quarter cuts: “The company also recently announced a quarterly dividend… This represents a $3.20 annualized dividend and a dividend yield of 2.62%. This is an increase from QUALCOMM’s previous quarterly dividend of $0.75.”
With all these positively constructed features it wouldn’t come as too much surprise that owners within hedge funds/investors own 70.87% of the company’s stock.