Activist investor firm Jana Partners says Qualcomm should speed up a stock repurchase, look for ways to cut costs, and consider splitting itself up.
In a letter sent to investors, Jana Partners said Qualcomm has two "excellent" businesses in its chip design and wireless intellectual property units, but it described Qualcomm's stock performance as underwhelming.
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Qualcomm said in March that it would buy back $10 billion in stock over the next year and possibly another $5 billion afterward. Jana said the $10 billion stock repurchase should happen sooner, and it said Qualcomm should reduce its expenses at the same time and then buy back another $5 billion in shares.
The New York firm also said Qualcomm should consider changing its corporate structure, possibly by combining its chipset and IP licensing business or considering a partial or full separation of those businesses.
It said Qualcomm should also shrink its board and bring in new directors.
Qualcomm said in a news release that its combination of businesses creates more value for shareholders. The San Diego company said its board of directors reviews its corporate structure on a regular basis.
Jana Partners said it has invested more than $2 billion in Qualcomm and described itself as one of the company's largest shareholders. That suggests the company has acquired a much bigger stake in the company in 2015. The firm owned 4.4 million shares of Qualcomm at the end of 2014, which would be worth about $300 million as of Monday's close. That's good for a 0.3-percent stake in the company.
Shares of Qualcomm lost 43 cents to $68.73 on Monday. The stock has fallen 7.5 percent in 2015.