Qualcomm Stock Bounces Off Annual Lows After Buyback Announcement

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Qualcomm announced a $10 billion stock repurchase program

Qualcomm, Inc. (NASDAQ:QCOM) announced this morning a new $10 billion stock repurchase program, which will add to the buyback program announced in July 2018. The existing program has $900 million of its repurchase authority remaining, and the new buyback plan has no expiration date. 

QCOM is rising after the announcement, and was last seen up 1.8% a $125.21. The security yesterday touched a one-year low of $121.05, and still has every major moving average to contend with. Year-to-date, the equity is down 19.3%. 

Options bears have taken advantage of this negative price action. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM sports a 10-day put/call volume ratio that stands in the 89th percentile of its annual range. In other words, puts are being picked up at a quicker-than-usual clip. 

Analysts are still optimistic, however. Of the 17 in coverage, 11 consider the stock a “buy” or better, with not a single “sell” rating on the books. Additionally the 12-month consensus price target of $180.55 is a 44.2% premium to last night’s close.