Qualcomm said It will repurchase an aggregate of $5 billion shares of common stock for an initial delivery about 57.7 million shares as part of the repurchase plan. The company plans to use proceeds from its recent $10 billion debt offering to fund the accelerated buyback.
"These repurchases represent a significant step towards meeting our goal of repurchasing $10 billion of common stock by March 2016, in addition to our commitment to return a minimum of 75% of free cash flow to stockholders through dividends and repurchases," CEO Steve Mollenkopf said. "The board and the management team remain committed to returning capital to stockholders and believe we can continue to do so as we invest to create longer term stockholder value."
About 12.7 million shares of Qualcomm were traded by 11:30 a.m. Thursday, above the company's average trading volume of about 11.4 million shares.
TheStreet Ratings team rates QUALCOMM INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUALCOMM INC (QCOM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."