Qualcomm, Inc. (NASDAQ: QCOM) is having a strong start to the trading session this morning, and for good reason. The company announced that it has entered into an accelerated share repurchase plan, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The share repurchase plan;
- what we’re seeing form QCOM as a result; and
- what we’ll be watching for with regard to the stock ahead.
QCOM Announces Accelerated Share Repurchase Plan
As mentioned above, Qualcomm is having a strong start to the trading session this morning after the company announced that it has entered into a series of accelerated share repurchase agreements. The agreements were signed with Bank of America, Citibank, and Morgan Stanley, outlining the repurchase of an aggregate of $16 billion of QCOM common stock. In a statement, Steve Mollenkopf, CEO at QCOM, had the following to offer:
We are pleased to initiate this significant accelerated share repurchase as we continue to execute on our previously announced $30 billion stock repurchase program… We remain on track to complete a large majority of the announced program by the end of fiscal 2019. The Board and the management team remain committed to returning capital to stockholders while we also continue to invest to create longer term stockholder value.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of QCOM, the news proved to be overwhelmingly positive. After all, a $16 billion share buyback is no small number and it shows that the company is confident in its growth as it continues to keep its interests aligned with those of investors. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:20), QCOM is trading at $74.00 per share after a gain of $2.25 per share or 3.14% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on QCOM. In particular, we’re interested in following the company as it works to maintain its leadership position in the face of competition with companies like NVDA and AMD. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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