QUALCOMM, Inc. (QCOM) Shares Soar in Premarket Trading After License Agreement Signed with Xiaomi

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QUALCOMM, Inc. (NASDAQ:QCOM) shares have been active in premarket trading this morning after they announced a license agreement with Chinese internent and smartphone company, Xiaomi.

QUALCOMM, Inc. (NASDAQ:QCOM) will provide Xiaomi with a royalty-bearing patent license which will allow them to manufacutre, develop and sell both 3G and 4G smartphones. Shares of the company stock traded up 3.61% in premarket trading at the time this article was written, with investors apparently liking the deal.

“Xiaomi prides itself on embracing and leading smartphone innovation through its popular line of Mi devices,” said Lei Jun, CEO of Xiaomi. “A license from Qualcomm will play an important role in helping us bring the newest and most innovative products to our growing customer base.”

The stock closed at $49.3 during the last trading session. It is down 28.21% since April 29, 2015 and is downtrending. It has underperformed the S&P500 by 28.01%.

From a total of 19 analysts covering Qualcomm Inc. (NASDAQ:QCOM) stock, 10 rate it a “Buy”, 0 a “Sell”, and 9 a “Hold”. This means that 53% of the ratings are positive. The highest target price is $75 while the lowest target price is $55. The mean of all analyst targets is $64.64 which is 31.12% above today’s ($49.3) stock price. Qualcomm Inc. was the topic of 31 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 23 with a “Outperform” rating. Rosenblatt initiated shares with a”Buy” rating and a $65 target share price in their report from an October 22. Nomura downgraded QCOM stock in a recent report from November 9 to a “Neutral” rating. JP Morgan initiated the rating on September 8. JP Morgan has a “Neutral” rating and a $57.50 price target on shares. Finally, Northland Capital maintained the stock with a “Market Perform” rating in a report they issued on a November 5.

The institutional sentiment increased to 0.93 in Q2 2015. It’s up 0.06, from 0.87 in 2015Q1. The ratio improved, as 117 funds sold all their QUALCOMM, Inc. shares they owned while 599 reduced their positions. 120 funds bought stakes while 543 increased their total positions. Institutions now own 1.24 billion shares which is 6.84% less than the previous share count of 1.33 billion in 2015Q1.

Quality Growth Management Inc. holds 26.19% of its total portfolio in QUALCOMM, Inc., equating to 405,750 shares. Tam Capital Management Inc. owns 1.03 million shares representing 23.16% of their total US portfolio. Moreover, Jana Partners Llc has 10.73% of their total portfolio invested in the company, equating to 28.82 million shares. The Texas-based Penn Davis Mcfarland Inc has a total of 9.73% of their portfolio invested in the stock. Edinburgh Partners Ltd, a United Kingdom-based fund reported 1.34 million shares owned.

Since March 11, 2015, the stock had 1 buy, and 5 insider sales for a total of $1.67 million in net activity. Renduchintala Venkata S M sold 2,700 shares worth $150,066. Amon Cristiano R sold 2,737 shares worth $146,621. Vinciquerra Anthony J bought 1,000 shares worth $54,700. Sterling Michelle M sold 4,185 shares worth $248,253. The insider Aberle Derek K sold 14,794 shares worth $981,465.

Qualcomm Incorporated is engaged in providing third-generation (3G), fourth-generation (4G) and next-generation wireless technologies. The company has a market cap of $74.10 billion. The Company’s products include 2net, AllPlay, Brew, Gobi, Halo, HealthyCircles, Hy-Fi, IPQ, IZat, Pixtronix, Powerline, QChat, QLearn, Small Cells, Snapdragon, Vive, RaptorQ, Vuforia and WiPower. It has 15.39 P/E ratio. AllPlay helps manufacturers create devices and services.

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