Qorvo Inc (NASDAQ:QRVO), a leading provider of core technologies and RF solutions for mobile, infrastructure and defense applications, today announced it has entered into an accelerated share repurchase program (ASR) with Bank of America, N.A. (BofA), to repurchase $500 millionof Qorvo’s common stock.
Under the terms of the ASR, Qorvo has agreed to repurchase $500 million in total of its common stock from BofA, $250 million of which will be subject to a maximum and minimum share price. The final number of shares to be repurchased will be based generally on Qorvo’s volume-weighted average stock price, less a discount, during the term of the ASR. The ASR is expected to be completed in the first quarter of Qorvo’s fiscal year 2017. The ASR is part of the Company’s previously announced $1 billion share repurchase program approved by its Board of Directors in November 2015. After giving effect to the ASR, approximately $250 million will remain authorized under this program for future repurchases. (Original Source)
Shares of Qorvo closed yesterday at $40.78, up $3.23 or 8.60%. QRVO has a 1-year high of $88.35 and a 1-year low of $33.30. The stock’s 50-day moving average is $40.88 and its 200-day moving average is $49.17.
On the ratings front, Qorvo has been the subject of a number of recent research reports. In a report issued on February 10, Needham analyst Quinn Bolton reiterated a Buy rating on QRVO, with a price target of $54, which represents a potential upside of 32.4% from where the stock is currently trading. Separately, on February 5, BMO’s Tim Long maintained a Buy rating on the stock and has a price target of $50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Quinn Bolton and Tim Long have a total average return of 13.7% and 0.6% respectively. Bolton has a success rate of 55.6% and is ranked #75 out of 3610 analysts, while Long has a success rate of 38.9% and is ranked #1485.
Overall, one research analyst has rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 10 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $62.00 which is 52.0% above where the stock closed yesterday.
Qorvo Inc is a provider of technologies and RF solutions for mobile, infrastructure and aerospace/defense applications.