Qualcomm (NASDAQ:QCOM) Price Target Cut to $205.00 by Analysts at Rosenblatt Securities

Key Points

• Rosenblatt cut Qualcomm’s price target from $235 to $205 but kept its Buy rating; the new target implies about 29% upside from the prior close.
• Analyst views are mixed: Qualcomm has a consensus Hold rating and an average price target of $199.97. Shares fell $14.82 to $158.37 on Thursday.
• Quarterly EPS and revenue slightly beat estimates, but revenue declined 8.4% year over year. Weak handset trends, margin concerns and anticipated Apple business losses weigh on the outlook, despite growth opportunities in automotive and data centers.

Qualcomm (NASDAQ:QCOM - Get Free Report) had its target price lowered by equities researchers at Rosenblatt Securities from $235.00 to $205.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the wireless technology company's stock. Rosenblatt Securities's price objective would suggest a potential upside of 29.44% from the company's previous close.

Several other research firms have also issued reports on QCOM. TD Cowen lifted their price target on shares of Qualcomm from $175.00 to $200.00 and gave the stock a "buy" rating in a research report on Monday, October 19th. Robert W. Baird set a $320.00 price objective on Qualcomm in a research report on Thursday. Sanford C. Bernstein reduced their price objective on Qualcomm from $165.00 to $155.00 and set a "market perform" rating for the company in a research note on Monday. Susquehanna decreased their target price on Qualcomm from $185.00 to $165.00 and set a "neutral" rating on the stock in a report on Thursday. Finally, Oppenheimer set a $200.00 target price on Qualcomm in a research report on Monday, July 27th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $199.97.

Qualcomm Price Performance

Qualcomm stock traded down $14.82 during midday trading on Thursday, hitting $158.37. The company's stock had a trading volume of 23,032,651 shares, compared to its average volume of 15,096,307. Qualcomm has a 12 month low of $121.99 and a 12 month high of $259.92. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $169.12 billion, a PE ratio of 18.27, a price-to-earnings-growth ratio of 3.70 and a beta of 1.70. The stock's 50-day moving average price is $178.23 and its 200-day moving average price is $169.48.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share for the quarter, beating the consensus estimate of $2.16 by $0.01. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The company had revenue of $10.44 billion during the quarter, compared to analyst estimates of $10.12 billion. During the same quarter last year, the firm posted $3.00 EPS. The business's revenue for the quarter was down 8.4% on a year-over-year basis. Analysts anticipate that Qualcomm will post 7.71 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $182.85, for a total transaction of $457,125.00. Following the completion of the sale, the executive vice president directly owned 18,184 shares in the company, valued at approximately $3,324,944.40. This trade represents a 12.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the company's stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $200.00, for a total value of $2,000,000.00. Following the completion of the transaction, the chief executive officer owned 177,568 shares in the company, valued at $35,513,600. This represents a 5.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 30,258 shares of company stock worth $5,727,616. 0.05% of the stock is owned by corporate insiders.

Institutional Trading of Qualcomm

Institutional investors have recently made changes to their positions in the stock. Baxter Bros Inc. bought a new stake in Qualcomm in the second quarter worth $17,844,000. Y Intercept Hong Kong Ltd purchased a new stake in Qualcomm during the second quarter valued at about $28,068,000. Tensor Edge Capital LLC bought a new position in shares of Qualcomm during the second quarter valued at about $147,315,000. Sawyer & Company Inc bought a new position in shares of Qualcomm during the third quarter valued at about $2,403,000. Finally, Robinson Value Management Ltd. grew its stake in shares of Qualcomm by 40.5% during the third quarter. Robinson Value Management Ltd. now owns 34,184 shares of the wireless technology company's stock valued at $6,291,000 after buying an additional 9,858 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Qualcomm News Summary

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s fiscal Q4 adjusted EPS of $2.17 and revenue of about $10.44 billion topped consensus. Automotive revenue surged about 89%, and management highlighted data-center expansion, including a target of $5 billion in fiscal 2027 revenue. QCOM Q4 Earnings Beat Estimates on Robust Automotive Growth
• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for Starlink Mobile’s planned U.S. terrestrial 5G network—a major infrastructure opportunity that could diversify Qualcomm beyond smartphones. SpaceX signs deal with Qualcomm to provide network technology for U.S. mobile service
• Negative Sentiment: The results were overshadowed by weak profit guidance and pressure on chip margins. Handset revenue fell sharply (reported at about 26% in one account), while Apple’s expected move away from Qualcomm products threatens a key source of sales. Revenue was down 8.4% year over year, and growth in automotive and data centers has not yet made up for handset weakness. Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
• Negative Sentiment: Investors are also concerned that newer businesses carry lower margins, and that smartphone demand is being weighed down by memory shortages. Susquehanna lowered its price target to $165 and assigned a neutral rating. A broader chip-sector sell-off added to the pressure. Qualcomm slides after earnings, leading post-election chip stock sell-off

About Qualcomm

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.

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