QUALCOMM, Inc. (QCOM) Shares are Up After Company Elects Not to Break Up

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QUALCOMM, Inc. (NASDAQ:QCOM) stock is up slightly in pre-market trading after the company has officially decided that they will not be breaking up. There was talk for some time that the corporation would split its technology and chipmaking businesses into separate entities, but that was brought to an abrupt halt finally as the company has announced plans to keep the business together.

QUALCOMM, Inc.’s (NASDAQ:QCOM) top management officials concluded that splitting the company into two would be detrimental to profits and would be less beneficial than keeping the company as one.

“The strategic benefits and synergies of our model are not replicable through alternative structures,” Steven Mollenkopf, Qualcomm’s chief executive, said in a statement. “We therefore believe the current structure is the best way to execute on our strategy.”

The stock closed at $46.83 during the last trading session. It is down 31.92% since May 12, 2015 and is downtrending. It has underperformed the S&P500 by 28.25%.

From a total of 20 analysts covering Qualcomm Inc. (NASDAQ:QCOM) stock, 11 rate it a “Buy”, 0 a “Sell”, and 9 a “Hold”. This means that 55% 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 $64.61 which is 37.97% above today’s ($46.83) stock price. Qualcomm Inc. was the topic of 32 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Pacific Crest initiated shares on December 4 with a “Overweight” rating. Rosenblatt initiated shares with a”Buy” rating and a $65 target share price in their report from an October 22. Stifel Nicolaus maintained QCOM stock in a recent report from November 19 with a “Buy” rating. JP Morgan initiated the rating on September 8. JP Morgan has a “Neutral” rating and a $57.50 price target on shares. Finally, Canaccord Genuity maintained the stock with a “Buy” rating in a report they issued on a November 5.

The institutional sentiment decreased to 0.63 in Q2 2015. It’s down 0.30, from 0.93 in 2015Q1. The ratio is negative, 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 4 sales for a total of $690,853 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 $70.39 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 14.62 P/E ratio. AllPlay helps manufacturers create devices and services.

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