Shares of Qualcomm Incorporated (QCOM) gained 1.3% in Tuesday’s extended trade after the company approved a stock repurchase program of $10 billion. The plan comes with no expiration date and is in addition to a previous program, which was announced in July 2018 and has $0.9 billion of outstanding repurchase authority.
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Qualcomm develops and sells wireless telecommunications products and services that are used in mobile devices and other wireless products. (See Qualcomm stock charts on TipRanks)
The repurchases under the new plan will be carried out as and when determined by the company in the open market or private transactions. Also, the repurchases will be made using the company’s available cash balance and may be commenced or suspended from time to time at Qualcomm’s discretion without prior notice.
Following the news, Wells Fargo analyst Gary Mobley maintained a Hold rating on Qualcomm and lowered the price target to $138 (12.2% upside potential) from $155.
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The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 10 Buys and 4 Holds. The average Qualcomm price target of $176.54 implies 43.6% upside potential from current levels.
QCOM scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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