Shares of QUALCOMM, Inc. (NASDAQ:QCOM) are trading up significantly in afternoon trading today, after the company announced that they have reached a license deal with China’s Tianyu and Haier for 4G and 3G patents.
The agreement provides the two Chinese companies with the rights to sell and manufacture CDMA2000, 4G LTE and 3G WCDMA subscriber units within the country. In return, QUALCOMM, Inc. (NASDAQ:QCOM) will see significant royalties paid to them. While Qualcomm had long been known for their chip making business, in recent years they’ve made quite a lot of their profits (over 50%) from royalty-based patent use by other companies.
The stock is up 3.16% or $1.57 following the news, hitting $51.15 per share. About 7.20M shares traded hands. QCOM has declined 28.52% since May 26, 2015 and is downtrending. It has underperformed the S&P500 by 26.25%.
From a total of 20 analysts covering Qualcomm Inc. (NASDAQ:QCOM) stock, 12 rate it a “Buy”, 0 a “Sell”, and 8 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $75 while the lowest target price is $52. The mean of all analyst targets is $64.06 which is 25.24% above today’s ($51.15) stock price. Qualcomm Inc. was the topic of 35 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. JP Morgan upgraded shares on December 17 to a “Overweight” rating. Rosenblatt initiated shares with a”Buy” rating and a $65 target share price in their report from an October 22. Cowen & Co maintained QCOM stock in a recent report from December 16 with a “Outperform” rating. JP Morgan initiated the rating on September 8. JP Morgan has a “Neutral” rating and a $57.50 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Outperform” rating in a report they issued on a November 23.
The institutional sentiment decreased to 0.63 in Q2 2015. It’s down 0.30, from 0.93 in 2015Q2. The ratio dropped, as 154 funds sold all their QUALCOMM, Inc. shares they owned while 677 reduced their positions. 93 funds bought stakes while 428 increased their total positions. Institutions now own 1.06 billion shares which is 14.12% less than the previous share count of 1.24 billion in 2015Q2.
Jana Partners Llc holds 17.29% of its total portfolio in QUALCOMM, Inc., equating to 28.55 million shares. Orbis Investment Management (U.S.) Llc owns 213,730 shares representing 10.41% of their total US portfolio. Moreover, Penn Davis Mcfarland Inc has 9.19% of their total portfolio invested in the company, equating to 650,023 shares. The United Kingdom-based Generation Investment Management Llp has a total of 8.8% of their portfolio invested in the stock. Spo Advisory Corp, a California-based fund reported 9.44 million shares owned.
Since March 11, 2015, the stock had 1 insider buy, and 3 sales for a total of $490,240 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 $75.12 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 15.97 P/E ratio. AllPlay helps manufacturers create devices and services.