Antitrust Lawsuit Against Qualcomm Is Unjust Government Overreach

The Federal Trade Commission’s antitrust lawsuit against Qualcomm Inc. is just … Some background: Qualcomm develops and manufactures mobile …

Everyso often, a case comes along that screams government misuse of power. The FederalTrade Commission’s antitrust lawsuit against Qualcomm Inc. is just such a case,and thus warrants scrutiny.

The commission’saction was questionablefrom the start, based entirely on conjecture and allegations raisedby antagonistic competitors—China’s Huawei included. Even the Department ofJustice expressed misgivings aboutthe prosecution.

TheMay 21 ruling against thecompany by U.S. District Judge Lucy Koh compounded the injustice. In theabsence of evidence that Qualcomm’s business practices harmed competition, thejudge ignored real-world data to the contrary and ruled instead that Qualcomm’sactions might cause harm. Moreover, she cited Qualcomm’s success as defacto proof of monopolistic misbehavior.

Agood many antitrust experts have expressed alarm. Commissioner Christine Wilson,for example, published a commentary in the WallStreet Journal calling the opinion “bad law and bad policy.” Legal scholarRichard Epstein, in a Hoover Institution journal, characterized Koh’s take as“spectacularly misguided.”

Alas,judicial overreach and regulatory heavy-handedness are prevalent these days, reflectingthe imperiousness of the administrativestateand, in this instance, the revival of Progressive-era antitrust dogma.

Despitea fiercely competitive wireless market and robust indicators of consumerwelfare, two Obama-appointed commissioners and a federal district judge effectivelydecided that they are better equipped to manage wireless network licensing andchipset prices than those who actually produce and purchase the technology.

Somebackground: Qualcomm develops andmanufactures mobile technologies, including modems for cellular phones and theSnapdragon processors to run them. The company supplied chipsets and otherwireless network elements for hundreds of millions of Apple iPhones from 2011to 2017, among others. The companies’ association generated sizable profits forboth, as well as protracted litigation.

The Federal TradeCommission filed its antitrust complaint against Qualcomm on Jan. 17, 2017—amere three days before the end of the Obama administration. Only three of fivecommissioners were active at the time, and the vote to proceed with the casewas split 2 to 1. The single “no” vote was cast by then-Commissioner Maureen K.Ohlhausen, who denounced the lawsuit as “an enforcement action based on a flawed legaltheory that lacks economic and evidentiary support.”

Some observers contendthat the commission was “encouraged” to act by executives of Apple Inc., whichlikewise filed a lawsuit against Qualcomm on virtually the same grounds threedays after the commission’s filing. Indeed, the testimony of Apple executiveswas a central component of the commission’s case.

It is widely knownthat the commission and company signed a “common interest agreement,” whichallowed them to secretly share information and coordinate their legalstrategies. But it is largely unknown that internal Apple documents describe how, in an effort to “[r]educe Apple’s net royalty toQualcomm,” Apple planned long before filing suit to “[h]urt Qualcommfinancially” and “[p]ut Qualcomm’s licensing model at risk,” by filing lawsuitswith claims similar to those of the FederalTrade Commission. Whether the commission was an unwitting player in Apple’splans is unknown.

Ohlhausen’s objectionsto the commission’s filing were entirely validated during the 11-day benchtrial, which concluded on Jan. 29, 2019. The commission’s lawyers and witnessesproffered plenty of unsubstantiated theories about Qualcomm’s (purported) abuse of monopoly power and subsequent“strangling” of competition and innovation—but no empirical research to provethat Qualcomm’s business practices produced artificially high prices orrestricted supply.

In fact, Qualcomm’slicensing framework has been an industry standard for decades, and the commission’stheories are contradicted by real-world data.

The commission targetedwhat they called Qualcomm’s “no license-no chip policy,” claiming that thecompany threatened to withhold chips from handset manufacturers to extract undulyhigh payments for the bundle of patents necessary to operate the phones and toaccess the cellular network. Qualcomm’s (purported) chip monopoly was said tohave increased its negotiating leverage, thereby forcing phone manufacturers toaccede to the inflated royalties.

The rates were alsoimposed on handset manufacturers who sourced chips from other companies becauseQualcomm’s bundle of patents is essential to the functioning of the wireless network.According to the commission attorneys, the royalty rates demanded by Qualcommconstituted a “tax” on competing chip manufacturers by eroding their priceadvantage, if any.

The commission alsoclaimed that Qualcomm’s royalty framework forced competitors to cutcosts—including research and development investment—which supposedly reducedindustry innovation and increased the retail cost of wireless phones.

In reality, chipdemand expanded in the market defined (artificially) by the commission, and theaverage price of smartphones declined by more than 30% between 2010 and 2017.Qualcomm’s market share also declined (in the defined market), while companiessuch as MediaTek, Samsung, Huawei and others all gained share.

Perhaps most telling,Qualcomm did not increase royalty rates as its market share expanded, nor did it halt chip shipmentsfor negotiating leverage—both of which contravene the commission’s theory.

The burden of proof inthis type of antitrust case is supposed to be evidence of actual harm, according to Senior Circuit Judge Douglas Ginsburg of the Court ofAppeals for the District of Columbia, and Professor of Law Joshua D. Wright ofGeorge Mason University School of Law (himselfa former commissioner).

“[W]hile the risk ofanticompetitive foreclosure is real,” they wrote, “courts have sensiblyresponded by requiring plaintiffs to substantiate their claims with more thanjust theory or scant evidence that rivals have been harmed.”

The commission built its case around the theoretical assertions of Carl Shapiro, who also was the commission’s expert in its challenge to the merger of AT&T and Time Warner. In that case, however, U.S. District Judge Richard J. Leon shredded Shapiro’s pronouncements as “assumptions that are implausible and inconsistent with record evidence,” and “not sufficiently grounded in the evidence—a fact that undermine[s] my confidence in the reliability and factual credibility of his projections.”

The Federal TradeCommission lawsuit and subsequent ruling are also problematic for the commissionand Koh in light of the recent settlement of all litigation between Apple and Qualcomm.

Opening arguments inApple U.S. lawsuit had just commenced on April 16 when the settlement wasannounced. In addition to the dismissal of litigation worldwide, the deal includesa six-year patent licensing agreement, a multiyear chip supplier agreement, andan end to all patent disputes between the two companies. Apple will make a $4.5billion settlement payment to Qualcomm, as well.

Simply put, what isthe point of continuing litigation if the principle parties have alreadysettled the disputes?

Alas, the judge alsoignored a formal requestfrom the Department of Justice for a hearing “on issues related to a remedy,”further noting that “in fashioning a remedy, the court should take carefulconsideration of all relevant issues and effects of such a remedy. Thatincludes the principle that, although a proper remedy must restore anycompetition lost due to actions found to have violated the antitrust laws, aremedy should work as little injury as possible to other public policies.

By most accounts, the JusticeDepartment is referring to the effect on deployment of the 5G network. The term“5G” refers to the fifth generation of cellular wireless technology that willmove data exponentially faster and in greater volume. It will also dramaticallyreduce “latency” (the time it takes for a data message to reach its target andinitiate a response).

Qualcomm is a globalleader in 5G technologies, and the only major American company producing thenecessary network elements. It is also the principle competitor to Huawei, alsoa global provider of technology networks—with annual sales exceeding $86 billion.A reportreleased last month by the NATO Cooperative Cyber Defence Centre of Excellenceconcluded that Huawei technology is conjoined with Beijing’s intelligenceoperations.

There is, understandably, a great deal of concern that severe sanctions would handicap Qualcomm. As noted by the Justice Department:

Indeed, there is a plausible prospect that an overly broad remedy in this case could reduce competition and innovation in markets for 5G technology and downstream applications that rely on that technology. Such an outcome could exceed the appropriate scope of an equitable antitrust remedy. Moreover, it has the distinct potential to harm rather than help competition.

Alas, the JusticeDepartment’s request was summarily dismissed by both the commission and thejudge, who has ordered Qualcomm to renegotiate its contracts with customers andcompetitors worldwide—and for products and markets in which Qualcomm is not adominant player or which did not exist in the timeframe addressed in the commission’scomplaint.

Qualcomm has filed fora stayof Koh’s order and will seek an expedited appeal, company officials have said,noting that the order “threatens to upend the entire wireless communicationsindustry … and undermine incentives to contribute the foundational technologyunderlying cellular standards and systems.”

A stay of Koh’s orderis the least of what is needed to erase the judicial overreach and regulatoryheavy-handedness represented by this case. But there is potential for years ofadditional litigation unless the Federal Trade Commission refrains fromappealing an appeals court ruling in Qualcomm’s favor.

It is difficult toimagine that even the 9th Circuit Court of Appeals would allow Koh’s ruling tostand. But these are the days of the administrative state and the revival ofProgressive-era antitrust dogma.

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Cleararc Capital Inc. Sells 546 Shares of QUALCOMM, Inc. (NASDAQ:QCOM)

Cleararc Capital Inc. reduced its stake in shares of QUALCOMM, Inc. (NASDAQ:QCOM) by 2.6% during the 1st quarter, according to its most recent …

QUALCOMM logoCleararc Capital Inc. reduced its stake in shares of QUALCOMM, Inc. (NASDAQ:QCOM) by 2.6% during the 1st quarter, according to its most recent filing with the SEC. The firm owned 20,255 shares of the wireless technology company’s stock after selling 546 shares during the period. Cleararc Capital Inc.’s holdings in QUALCOMM were worth $1,155,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently made changes to their positions in QCOM. Farmers National Bank purchased a new stake in shares of QUALCOMM during the 1st quarter valued at approximately $26,000. Meridian Wealth Management LLC purchased a new stake in shares of QUALCOMM during the 1st quarter valued at approximately $26,000. Mark Sheptoff Financial Planning LLC purchased a new stake in shares of QUALCOMM during the 1st quarter valued at approximately $29,000. Field & Main Bank purchased a new stake in shares of QUALCOMM during the 1st quarter valued at approximately $32,000. Finally, Baldwin Brothers Inc. MA purchased a new stake in shares of QUALCOMM during the 1st quarter valued at approximately $34,000. 76.27% of the stock is currently owned by institutional investors.

NASDAQ QCOM traded up $0.17 during mid-day trading on Monday, reaching $72.89. 1,957,071 shares of the stock were exchanged, compared to its average volume of 12,227,410. The company has a debt-to-equity ratio of 3.98, a quick ratio of 1.39 and a current ratio of 1.55. The firm has a market cap of $88.75 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.61 and a beta of 1.59. QUALCOMM, Inc. has a 1-year low of $49.10 and a 1-year high of $90.34.

QUALCOMM (NASDAQ:QCOM) last released its quarterly earnings results on Wednesday, May 1st. The wireless technology company reported $0.61 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.54 by $0.07. QUALCOMM had a net margin of 11.57% and a return on equity of 56.69%. The business had revenue of $4.88 billion during the quarter, compared to analyst estimates of $4.83 billion. During the same period last year, the business earned $0.80 EPS. The business’s revenue was down 5.9% on a year-over-year basis. As a group, equities analysts predict that QUALCOMM, Inc. will post 3.3 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 27th. Stockholders of record on Thursday, June 6th will be issued a $0.62 dividend. This represents a $2.48 annualized dividend and a dividend yield of 3.40%. The ex-dividend date of this dividend is Wednesday, June 5th. QUALCOMM’s dividend payout ratio (DPR) is presently 77.74%.

In related news, President Cristiano R. Amon sold 13,466 shares of QUALCOMM stock in a transaction dated Tuesday, April 16th. The shares were sold at an average price of $60.00, for a total value of $807,960.00. Following the sale, the president now directly owns 37,614 shares in the company, valued at approximately $2,256,840. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Michelle M. Sterling sold 5,560 shares of the business’s stock in a transaction dated Wednesday, May 15th. The stock was sold at an average price of $86.44, for a total transaction of $480,606.40. The disclosure for this sale can be found here. Insiders sold a total of 949,832 shares of company stock valued at $37,443,538 over the last ninety days. Company insiders own 0.11% of the company’s stock.

A number of brokerages have issued reports on QCOM. Macquarie set a $85.00 target price on QUALCOMM and gave the company a “buy” rating in a research report on Wednesday, April 17th. Rosenblatt Securities boosted their target price on shares of QUALCOMM from $70.00 to $82.00 and gave the stock a “buy” rating in a research note on Wednesday, April 17th. Argus boosted their target price on shares of QUALCOMM to $95.00 and gave the stock a “buy” rating in a research note on Wednesday, April 17th. Canaccord Genuity reissued a “buy” rating and issued a $89.00 price target (up from $75.00) on shares of QUALCOMM in a research report on Wednesday, April 17th. Finally, Mizuho reaffirmed a “buy” rating and issued a $82.00 target price (up from $62.00) on shares of QUALCOMM in a report on Wednesday, April 17th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $79.68.

QUALCOMM Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

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Institutional Ownership by Quarter for QUALCOMM (NASDAQ:QCOM)

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Redwood Investment Management LLC Takes Position in QUALCOMM, Inc. (NASDAQ:QCOM)

Redwood Investment Management LLC bought a new position in QUALCOMM, Inc. (NASDAQ:QCOM) during the first quarter, according to its most …

QUALCOMM logoRedwood Investment Management LLC bought a new position in QUALCOMM, Inc. (NASDAQ:QCOM) during the first quarter, according to its most recent Form 13F filing with the SEC. The firm bought 53,006 shares of the wireless technology company’s stock, valued at approximately $3,023,000. QUALCOMM makes up approximately 1.3% of Redwood Investment Management LLC’s investment portfolio, making the stock its 13th biggest position.

Other hedge funds have also recently added to or reduced their stakes in the company. Oregon Public Employees Retirement Fund raised its position in QUALCOMM by 9,505.7% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 33,612,696 shares of the wireless technology company’s stock valued at $591,000 after purchasing an additional 33,262,770 shares during the period. Norges Bank purchased a new stake in QUALCOMM in the fourth quarter valued at approximately $736,806,000. Bank of New York Mellon Corp raised its position in QUALCOMM by 24.1% in the fourth quarter. Bank of New York Mellon Corp now owns 25,852,938 shares of the wireless technology company’s stock valued at $1,471,289,000 after purchasing an additional 5,022,323 shares during the period. FIL Ltd raised its position in QUALCOMM by 179.2% in the first quarter. FIL Ltd now owns 4,770,291 shares of the wireless technology company’s stock valued at $272,050,000 after purchasing an additional 3,061,598 shares during the period. Finally, OppenheimerFunds Inc. raised its position in QUALCOMM by 48.5% in the first quarter. OppenheimerFunds Inc. now owns 3,221,596 shares of the wireless technology company’s stock valued at $183,728,000 after purchasing an additional 1,052,071 shares during the period. 76.27% of the stock is currently owned by hedge funds and other institutional investors.

Several research firms have commented on QCOM. Barclays dropped their price target on shares of QUALCOMM from $100.00 to $90.00 and set an “overweight” rating for the company in a research note on Thursday, June 6th. Macquarie set a $90.00 target price on shares of QUALCOMM and gave the stock a “buy” rating in a research note on Thursday, May 23rd. Bank of America dropped coverage on shares of QUALCOMM in a research report on Thursday, May 23rd. Cfra set a $80.00 target price on shares of QUALCOMM and gave the company a “buy” rating in a report on Thursday, May 23rd. Finally, Deutsche Bank cut shares of QUALCOMM from a “buy” rating to a “hold” rating and reduced their target price for the company from $98.00 to $74.00 in a report on Thursday, May 23rd. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $79.68.

NASDAQ QCOM traded up $0.17 during mid-day trading on Monday, reaching $72.89. 1,957,071 shares of the stock were exchanged, compared to its average volume of 12,227,410. The company has a debt-to-equity ratio of 3.98, a quick ratio of 1.39 and a current ratio of 1.55. The firm has a market cap of $88.75 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.61 and a beta of 1.59. QUALCOMM, Inc. has a 1-year low of $49.10 and a 1-year high of $90.34.

QUALCOMM (NASDAQ:QCOM) last released its quarterly earnings results on Wednesday, May 1st. The wireless technology company reported $0.61 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.54 by $0.07. The business had revenue of $4.88 billion during the quarter, compared to analyst estimates of $4.83 billion. QUALCOMM had a net margin of 11.57% and a return on equity of 56.69%. The business’s revenue was down 5.9% on a year-over-year basis. During the same period last year, the business earned $0.80 EPS. As a group, equities analysts predict that QUALCOMM, Inc. will post 3.3 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 27th. Shareholders of record on Thursday, June 6th will be given a dividend of $0.62 per share. The ex-dividend date of this dividend is Wednesday, June 5th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 3.40%. QUALCOMM’s dividend payout ratio (DPR) is 77.74%.

In other QUALCOMM news, EVP Michelle M. Sterling sold 5,560 shares of the business’s stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $86.44, for a total transaction of $480,606.40. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Donald J. Rosenberg sold 7,141 shares of the business’s stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $84.56, for a total transaction of $603,842.96. The disclosure for this sale can be found here. Insiders have sold a total of 949,832 shares of company stock worth $37,443,538 over the last 90 days. 0.11% of the stock is owned by insiders.

QUALCOMM Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

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Institutional Ownership by Quarter for QUALCOMM (NASDAQ:QCOM)

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Columbia Asset Management Has $1.50 Million Position in QUALCOMM, Inc. (NASDAQ:QCOM)

Columbia Asset Management decreased its position in QUALCOMM, Inc. (NASDAQ:QCOM) by 1.6% during the first quarter, according to the company …

QUALCOMM logoColumbia Asset Management decreased its position in QUALCOMM, Inc. (NASDAQ:QCOM) by 1.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 26,271 shares of the wireless technology company’s stock after selling 425 shares during the period. Columbia Asset Management’s holdings in QUALCOMM were worth $1,498,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in QCOM. Deprince Race & Zollo Inc. boosted its holdings in QUALCOMM by 4.4% during the fourth quarter. Deprince Race & Zollo Inc. now owns 487,797 shares of the wireless technology company’s stock valued at $27,761,000 after acquiring an additional 20,448 shares during the period. Manchester Capital Management LLC raised its position in shares of QUALCOMM by 7.8% during the fourth quarter. Manchester Capital Management LLC now owns 27,763 shares of the wireless technology company’s stock valued at $1,558,000 after buying an additional 2,000 shares during the last quarter. Bailard Inc. raised its position in shares of QUALCOMM by 39.8% during the fourth quarter. Bailard Inc. now owns 22,163 shares of the wireless technology company’s stock valued at $1,261,000 after buying an additional 6,314 shares during the last quarter. Wesbanco Bank Inc. raised its position in shares of QUALCOMM by 2.7% during the fourth quarter. Wesbanco Bank Inc. now owns 11,939 shares of the wireless technology company’s stock valued at $680,000 after buying an additional 310 shares during the last quarter. Finally, Redpoint Investment Management Pty Ltd raised its position in shares of QUALCOMM by 2.5% during the fourth quarter. Redpoint Investment Management Pty Ltd now owns 111,534 shares of the wireless technology company’s stock valued at $6,347,000 after buying an additional 2,702 shares during the last quarter. Institutional investors own 76.27% of the company’s stock.

In other QUALCOMM news, President Cristiano R. Amon sold 13,466 shares of the firm’s stock in a transaction that occurred on Tuesday, April 16th. The shares were sold at an average price of $60.00, for a total value of $807,960.00. Following the transaction, the president now directly owns 37,614 shares of the company’s stock, valued at $2,256,840. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Michelle M. Sterling sold 5,560 shares of the firm’s stock in a transaction that occurred on Wednesday, May 15th. The shares were sold at an average price of $86.44, for a total transaction of $480,606.40. The disclosure for this sale can be found here. Insiders have sold 949,832 shares of company stock worth $37,443,538 over the last three months. 0.11% of the stock is owned by insiders.

QCOM has been the subject of a number of research analyst reports. Macquarie set a $90.00 price objective on shares of QUALCOMM and gave the company a “buy” rating in a research report on Thursday, May 23rd. ValuEngine raised shares of QUALCOMM from a “sell” rating to a “hold” rating in a research report on Tuesday, March 5th. Bank of America raised shares of QUALCOMM from a “neutral” rating to a “buy” rating and upped their price objective for the company from $90.00 to $105.00 in a research report on Thursday, May 2nd. Deutsche Bank reaffirmed a “hold” rating on shares of QUALCOMM in a research report on Monday, April 29th. Finally, Mizuho lowered shares of QUALCOMM from a “buy” rating to a “neutral” rating and cut their price objective for the company from $90.00 to $65.00 in a research report on Thursday, May 23rd. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average price target of $79.68.

QCOM opened at $73.10 on Monday. QUALCOMM, Inc. has a one year low of $49.10 and a one year high of $90.34. The company has a current ratio of 1.55, a quick ratio of 1.39 and a debt-to-equity ratio of 3.98. The company has a market cap of $88.41 billion, a PE ratio of 22.92, a P/E/G ratio of 1.61 and a beta of 1.59.

QUALCOMM (NASDAQ:QCOM) last released its quarterly earnings results on Wednesday, May 1st. The wireless technology company reported $0.61 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.54 by $0.07. QUALCOMM had a net margin of 11.57% and a return on equity of 56.69%. The business had revenue of $4.88 billion for the quarter, compared to analysts’ expectations of $4.83 billion. During the same period in the prior year, the firm earned $0.80 earnings per share. QUALCOMM’s revenue was down 5.9% compared to the same quarter last year. As a group, equities analysts anticipate that QUALCOMM, Inc. will post 3.3 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 27th. Stockholders of record on Thursday, June 6th will be paid a dividend of $0.62 per share. The ex-dividend date is Wednesday, June 5th. This represents a $2.48 annualized dividend and a dividend yield of 3.39%. QUALCOMM’s dividend payout ratio (DPR) is currently 77.74%.

QUALCOMM Company Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

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Institutional Ownership by Quarter for QUALCOMM (NASDAQ:QCOM)

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Altfest LJ & Co. Inc. Purchases Shares of 6181 QUALCOMM, Inc. (NASDAQ:QCOM)

Altfest L J & Co. Inc. purchased a new stake in shares of QUALCOMM, Inc. (NASDAQ:QCOM) in the 1st quarter, according to the company in its most …

QUALCOMM logoAltfest L J & Co. Inc. purchased a new stake in shares of QUALCOMM, Inc. (NASDAQ:QCOM) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 6,181 shares of the wireless technology company’s stock, valued at approximately $353,000.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. Hancock Whitney Corp lifted its holdings in QUALCOMM by 0.4% in the 1st quarter. Hancock Whitney Corp now owns 56,563 shares of the wireless technology company’s stock worth $3,227,000 after purchasing an additional 228 shares during the last quarter. Everett Harris & Co. CA lifted its holdings in shares of QUALCOMM by 2.5% during the first quarter. Everett Harris & Co. CA now owns 46,031 shares of the wireless technology company’s stock worth $2,625,000 after buying an additional 1,130 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of QUALCOMM by 7.2% during the first quarter. The Manufacturers Life Insurance Company now owns 1,165,537 shares of the wireless technology company’s stock worth $66,471,000 after buying an additional 78,696 shares during the last quarter. Neuberger Berman Group LLC lifted its holdings in shares of QUALCOMM by 12.5% during the first quarter. Neuberger Berman Group LLC now owns 934,868 shares of the wireless technology company’s stock worth $53,316,000 after buying an additional 103,507 shares during the last quarter. Finally, Banco Santander S.A. lifted its holdings in shares of QUALCOMM by 14.0% during the first quarter. Banco Santander S.A. now owns 35,828 shares of the wireless technology company’s stock worth $2,043,000 after buying an additional 4,409 shares during the last quarter. 76.27% of the stock is owned by institutional investors.

NASDAQ QCOM opened at $72.72 on Monday. The stock has a market cap of $88.41 billion, a PE ratio of 22.80, a price-to-earnings-growth ratio of 1.61 and a beta of 1.59. The company has a current ratio of 1.55, a quick ratio of 1.39 and a debt-to-equity ratio of 3.98. QUALCOMM, Inc. has a one year low of $49.10 and a one year high of $90.34.

QUALCOMM (NASDAQ:QCOM) last released its quarterly earnings results on Wednesday, May 1st. The wireless technology company reported $0.61 EPS for the quarter, topping the Zacks’ consensus estimate of $0.54 by $0.07. The company had revenue of $4.88 billion for the quarter, compared to analyst estimates of $4.83 billion. QUALCOMM had a return on equity of 56.69% and a net margin of 11.57%. QUALCOMM’s revenue was down 5.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.80 earnings per share. Research analysts anticipate that QUALCOMM, Inc. will post 3.3 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 27th. Investors of record on Thursday, June 6th will be issued a dividend of $0.62 per share. The ex-dividend date of this dividend is Wednesday, June 5th. This represents a $2.48 dividend on an annualized basis and a dividend yield of 3.41%. QUALCOMM’s payout ratio is presently 77.74%.

In other QUALCOMM news, EVP Michelle M. Sterling sold 5,560 shares of the firm’s stock in a transaction that occurred on Wednesday, May 15th. The stock was sold at an average price of $86.44, for a total value of $480,606.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Erin L. Polek sold 6,118 shares of QUALCOMM stock in a transaction that occurred on Friday, May 3rd. The stock was sold at an average price of $89.26, for a total value of $546,092.68. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 949,832 shares of company stock valued at $37,443,538. Corporate insiders own 0.11% of the company’s stock.

QCOM has been the subject of a number of research analyst reports. BidaskClub lowered QUALCOMM from a “buy” rating to a “hold” rating in a report on Tuesday, May 21st. Macquarie set a $90.00 target price on QUALCOMM and gave the company a “buy” rating in a research note on Thursday, May 23rd. Mizuho restated a “buy” rating and issued a $82.00 target price (up from $62.00) on shares of QUALCOMM in a research note on Wednesday, April 17th. Barclays upped their target price on QUALCOMM from $70.00 to $100.00 and gave the company an “overweight” rating in a research note on Wednesday, April 17th. Finally, DZ Bank upgraded QUALCOMM from a “hold” rating to a “buy” rating in a research report on Thursday, April 18th. One analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $79.68.

QUALCOMM Company Profile

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

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Institutional Ownership by Quarter for QUALCOMM (NASDAQ:QCOM)

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