A Reversal for QUALCOMM, Inc. Is Not Near. Professional Options Traders Are Bearish

In today’s session QUALCOMM, Inc. (QCOM) recorded an unusually high (1,086) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious QCOM decrease. With 1,086 contracts traded and 68554 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: QCOM170120P00040000 closed last at: $1.55 or 9.9% down. The stock increased 0.29% or $0.15 during the last trading session, hitting $51.14. About 7.31 million shares traded hands. QUALCOMM, Inc. (NASDAQ:QCOM) has declined 7.76% since August 24, 2015 and is downtrending. It has underperformed by 16.78% the S&P500.

Analysts await QUALCOMM, Inc. (NASDAQ:QCOM) to reports earnings on April, 20 after the close. They expect $0.82 EPS, down 35.94% or $0.46 from last year’s $1.28 per share. QCOM’s profit will be $1.23B for 15.59 P/E if the $0.82 EPS becomes reality. After $0.85 actual EPS reported by QUALCOMM, Inc. for the previous quarter, Wall Street now forecasts -3.53% negative EPS growth.

Out of 28 analysts covering Qualcomm Inc. (NASDAQ:QCOM), 20 rate it “Buy”, 1 “Sell”, while 14 “Hold”. This means 57% are positive. Qualcomm Inc. was the topic in 45 analyst reports since July 23, 2015 according to StockzIntelligence Inc.

The institutional sentiment decreased to 0.63 in 2015 Q3. Its down 0.30, from 0.93 in 2015Q2. The ratio is negative, as 154 funds sold all QUALCOMM, Inc. shares owned while 677 reduced positions. 93 funds bought stakes while 428 increased positions. They now own 1.06 billion shares or 14.12% less from 1.24 billion shares in 2015Q2.

Jana Partners Llc holds 17.29% of its portfolio in QUALCOMM, Inc. for 28.55 million shares. Orbis Investment Management (U.S.) Llc owns 213,730 shares or 10.41% of their US portfolio. Moreover, Penn Davis Mcfarland Inc has 9.19% invested in the company for 650,023 shares. The United Kingdom-based Generation Investment Management Llp has invested 8.8% in the stock. Spo Advisory Corp, a California-based fund reported 9.44 million shares.

Since March 11, 2015, the stock had 0 insider buys, and 1 sale for $150,066 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 $76.90 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 16.93 P/E ratio. AllPlay helps manufacturers create devices and services.

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