Qualcomm Price Target Cut During Worst Month in Years

Evercore ISI slashed its QCOM price target

May 31, 2019 at 9:50 AM
facebook X logo linkedin


Qualcomm, Inc. (NASDAQ:QCOM) topped out above $90 earlier this month after the chipmaker settled with Apple (AAPL) in a patent dispute -- marking QCOM stock's highest mark since January 2000. The shares quickly retreated on news of an antitrust court ruling, last seen down 1.6% at $65.56 -- putting them on track for their worst monthly performance since February 2002.

This may be what prompted Evercore ISI this morning to slash its QCOM price target to $90 from $105, though this still represents a 35% premium to last night's close. Most analysts are bullish on Qualcomm, with 12 of 19 maintaining a "buy" or better rating. Plus, the average 12-month price target is in line with Evercore's new target price.

In the options pits, put traders have been active in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM's 10-day put/call volume ratio of 0.68 ranks in the 92nd annual percentile, meaning puts have been bought to open relative to calls at a quicker-than-usual clip.

However, put writers have been present, too. More specifically, the June 62.50 put has seen the biggest increase in open interest over this two-week time frame, and data from the major exchanges confirms notable sell-to-open activity here. By using this neutral-to-bullish options strategy, speculators expect QCOM to remain above the $62.50 level through June options expiration.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI