Akuna also saw increased positions of other major investors such as Nuveen and Goldman Sachs, which is an indicator of a good institutional backup and boosts sentiment in the market on the share.
Recently, Qualcomm reported better-than-expected earnings of two dollars and 77 cents per share, which indicated robust demand for its technology. Revenue was up above 10% year after year with good business on mobile chips, as well as growing traction in niches such as automotive and the Internet of Things. The firm has the ability to sustain a dividend payout of more than 2%, and it also has solid cash flows, making it an attractive company to both growth and income investors.
From a valuation point of view, the stocks are trading at fair multiples as it has a good earnings growth and a high return on equity. Qualcomm, with its mid-teen price to earnings ratio, positions itself well versus its rivals in the semiconductor business, many of whom fetch higher premiums at no better profit rate. Analysts are split, as most hold ratings, although a sizable number continue to see upside opportunity and targets significantly outside the current trading range.
Ahead, Qualcomm needs to rely on its capabilities in 5G adoption, the ability to expand into automotive and the internet of things, and the capacity to protect margins against formidable rivals.
Institutional purchase and stable financial performance continue to present a bullish background, which gives the stock the potential to remain strong as long as the company continues reporting stability in earnings and growth in emerging markets.
RWA Wealth Partners LLC grew its stake in QUALCOMM Incorporated (NASDAQ: QCOM – Free Report) by 22.0% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 224,868 shares of the wireless technology company’s stock after purchasing an additional 40,609 shares during the period. RWA Wealth Partners LLC’s holdings in QUALCOMM were worth $34,542,000 at the end of the most recent reporting period.
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