Qorvo (NASDAQ:QRVO) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Qorvo (NASDAQ:QRVO) reported earnings of $0.92 per share, exceeding analysts' expectations of $0.62, and generated revenue of $818.80 million compared to predictions of $775.61 million.
• The company's stock opened at $91.29 following the earnings announcement, up from a previous close of $84.67, and last traded at $86.39 with a considerable trading volume.
• Analysts have mixed sentiments, with price targets raised by some brokerages, while others downgraded their ratings, resulting in a consensus rating of "Hold" and target price of $97.68 for Qorvo stock.

Qorvo, Inc. (NASDAQ:QRVO - Get Free Report)'s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $84.67, but opened at $91.29. Qorvo shares last traded at $86.39, with a volume of 1,748,770 shares trading hands.

The semiconductor company reported $0.92 EPS for the quarter, beating the consensus estimate of $0.62 by $0.30. Qorvo had a net margin of 2.21% and a return on equity of 12.63%. The firm had revenue of $818.80 million for the quarter, compared to the consensus estimate of $775.61 million. During the same period in the previous year, the company earned $0.87 earnings per share. The company's quarterly revenue was down 7.7% on a year-over-year basis.

Analyst Ratings Changes

Several equities analysts have commented on QRVO shares. Citigroup reiterated a "sell" rating on shares of Qorvo in a report on Tuesday, June 10th. Benchmark boosted their target price on shares of Qorvo from $95.00 to $125.00 and gave the company a "buy" rating in a research report on Wednesday, July 30th. Susquehanna reissued a "neutral" rating and issued a $95.00 target price (up previously from $90.00) on shares of Qorvo in a research report on Wednesday, July 30th. Loop Capital boosted their target price on shares of Qorvo from $75.00 to $90.00 and gave the company a "hold" rating in a research report on Wednesday, July 30th. Finally, Needham & Company LLC boosted their target price on shares of Qorvo from $90.00 to $104.00 and gave the company a "buy" rating in a research report on Wednesday, July 30th. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $95.35.

Insider Activity

In other news, Director John R. Harding sold 1,450 shares of the company's stock in a transaction that occurred on Wednesday, May 7th. The stock was sold at an average price of $70.09, for a total value of $101,630.50. Following the completion of the transaction, the director owned 7,597 shares of the company's stock, valued at $532,473.73. This represents a 16.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 0.41% of the stock is owned by corporate insiders.

Institutional Trading of Qorvo

A number of institutional investors and hedge funds have recently added to or reduced their stakes in QRVO. Jericho Capital Asset Management L.P. acquired a new stake in Qorvo during the 1st quarter valued at approximately $168,980,000. Contour Asset Management LLC acquired a new stake in Qorvo during the 1st quarter valued at approximately $151,698,000. Ameriprise Financial Inc. increased its position in Qorvo by 102.0% during the 4th quarter. Ameriprise Financial Inc. now owns 3,597,546 shares of the semiconductor company's stock valued at $251,577,000 after purchasing an additional 1,816,811 shares during the period. Vulcan Value Partners LLC increased its position in Qorvo by 53.7% during the 4th quarter. Vulcan Value Partners LLC now owns 2,581,296 shares of the semiconductor company's stock valued at $180,487,000 after purchasing an additional 902,353 shares during the period. Finally, The Manufacturers Life Insurance Company increased its position in Qorvo by 2,096.5% during the 1st quarter. The Manufacturers Life Insurance Company now owns 498,122 shares of the semiconductor company's stock valued at $36,069,000 after purchasing an additional 475,444 shares during the period. Institutional investors and hedge funds own 88.57% of the company's stock.

Qorvo Price Performance

The firm has a market cap of $7.79 billion, a price-to-earnings ratio of 98.95, a P/E/G ratio of 1.64 and a beta of 1.35. The business's 50-day simple moving average is $83.24 and its two-hundred day simple moving average is $76.18. The company has a current ratio of 2.81, a quick ratio of 2.01 and a debt-to-equity ratio of 0.45.

Qorvo Company Profile

Qorvo, Inc engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets.