QCOM Brushes Off Earnings Beat, Receives Downgrade

Plenty of other analysts chimed in with price-target adjustments as well

Deputy Editor
Feb 4, 2021 at 10:43 AM
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The shares of Qualcomm, Inc (NASDAQ:QCOM) are down 8.3% at $148.75 at last check, despite the chip company's better-than-expected fiscal first-quarter report. After Qualcomm's sales missed expectations, investors were likely put off by the company's dismal sales growth expectations for the first half of 2021. To follow, Citigroup downgraded the stock to "neutral" from "buy," amid a series of price-target adjustments. More specifically, no fewer than five analysts raised their price targets on QCOM, while no fewer than four, including Citigroup, cut their price objectives. 

Today's gap lower has QCOM just below the 60-day moving average, a trendline of support since early May. Still up around 62% year-over-year, the stock has been seeing pressure at the $167 region -- home to its Jan. 20 all-time high of $167.94. 

Analysts were mostly bullish on Qualcomm stock coming into today, with 12 of the 19 in coverage at a "buy" or better rating, and the remaining seven a tepid "hold." Furthermore, before today, the 12-month consensus price target was $172.67 -- a 17.3% premium to current levels. 

Meanwhile, the options pits have been more bearish than usual. QCOM's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 77% of readings from the past year. This shows puts being picked up at a relatively faster-than-usual pace. 

 

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