Qorvo (NASDAQ:QRVO) Shares Gap Up on Earnings Beat

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) gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 traded.

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

Wall Street Analysts Forecast Growth

QRVO has been the subject of a number of recent research reports. Citigroup reissued a "sell" rating on shares of Qorvo in a report on Tuesday, June 10th. Barclays increased their price objective on Qorvo from $70.00 to $90.00 and gave the company an "equal weight" rating in a research report on Wednesday. Loop Capital increased their price objective on Qorvo from $75.00 to $90.00 and gave the company a "hold" rating in a research report on Wednesday. Craig Hallum restated a "buy" rating on shares of Qorvo in a research report on Wednesday. Finally, Benchmark raised their price target on Qorvo from $95.00 to $125.00 and gave the stock a "buy" rating in a research report on Wednesday. Three investment analysts have rated the stock with a sell rating, eleven have given a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, Qorvo currently has a consensus rating of "Hold" and a consensus target price of $95.35.

Insider Activity at Qorvo

In other news, Director John R. Harding sold 1,450 shares of the business's stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $70.09, for a total value of $101,630.50. Following the completion of the sale, the director owned 7,597 shares in the company, valued at approximately $532,473.73. The trade was a 16.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.41% of the company's stock.

Institutional Trading of Qorvo

Several large investors have recently bought and sold shares of the stock. City Holding Co. acquired a new position in Qorvo during the first quarter worth $25,000. Banque Transatlantique SA purchased a new position in Qorvo during the first quarter worth about $27,000. Larson Financial Group LLC boosted its stake in Qorvo by 222.6% during the first quarter. Larson Financial Group LLC now owns 429 shares of the semiconductor company's stock worth $31,000 after buying an additional 296 shares during the period. Huntington National Bank boosted its stake in shares of Qorvo by 47.1% in the fourth quarter. Huntington National Bank now owns 453 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 145 shares during the period. Finally, Curat Global LLC purchased a new position in shares of Qorvo in the first quarter valued at approximately $34,000. Hedge funds and other institutional investors own 88.57% of the company's stock.

Qorvo Trading Up 0.5%

The company has a quick ratio of 1.95, a current ratio of 2.81 and a debt-to-equity ratio of 0.45. The company's fifty day moving average is $83.05 and its two-hundred day moving average is $76.07. The stock has a market cap of $7.80 billion, a price-to-earnings ratio of 99.12, a PEG ratio of 2.31 and a beta of 1.39.

About Qorvo

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.