Giant Chipmaker Qualcomm Recovering from Unfortunate Events and Rolls Out New Products with Share Buyback: Analyst Report Issued by BrokerBank Securities, Inc.
NEW YORK, March 12, 2015 /PRNewswire/ -- In today's session, 11th March 2015, S&P downgraded Qualcomm Incorporated (NASDAQ: QCOM) from Buy to Hold, yet increased target price by $5, to $80. The downgrade caused a decrease in share price. (Down 1.57%, to $70.32).
Within the last two years, Qualcomm has been facing difficulties in all markets it operates in, including the Chinese market, the Korean market, the Europe market, and the U.S market. Since its peak in August 2014 at $81.60, share prices had been fluctuating due to litigation with Chinese regulator regarding to anti-monopoly regulations and royalty collection.
Currently, the stock 52 week range is $62.26 –$81.97, with a trough on January 30th, 2015. After the firm's revenue fell short from the street expectations and the announcement that customers passed on its new Snapdragon mobile chip, share price plunged.
However, Qualcomm has been picking up its momentum since the beginning of February with the settlement with Chinese regulator and a major increase in the company's capital return program. On March 9th, its board has authorized the company to repurchase up to $15 billion of its common stock. The Board also approved a 14 percent increase in Qualcomm's quarterly cash dividend, raising the annualized dividend payout to $1.92 per share of common stock. The cash dividend will increase from $0.42 to $0.48 per share of common stock and will be effective for quarterly dividends payable after March 25, 2015. The company plans to finance the capital return program primarily by accessing the public debt markets in 2015.
For a more detailed research report with analyst comments and recommendation on QCOM please follow the link. There is no cost obligation required to view analyst brief:
http://bit.ly/-QCOM-AnalystReport
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This report was prepared for informational purposes only. Affiliated parties involved with producing and issuing this report have not been compensated by the profiled company in any form. A full disclaimer can be found by viewing the full analyst report.
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