Zacks Research Upgrades Qualcomm (NASDAQ:QCOM) to Hold

Key Points

• Zacks Research upgraded Qualcomm from “strong sell” to “hold.” Across analysts, the stock also carries an average “hold” rating and an average price target of $197.13.
• Qualcomm reported quarterly EPS of $2.17, slightly above the $2.16 consensus, and revenue of $10.44 billion, beating estimates of $10.12 billion. Revenue was down 8.4% year over year.
• Analyst views remain mixed: Susquehanna lowered its price target to $165, while Freedom Broker cut its rating to “hold” and reduced its target to $185.

Qualcomm (NASDAQ:QCOM - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Wednesday, Zacks reports.

A number of other research analysts have also weighed in on the company. Susquehanna decreased their price objective on Qualcomm from $185.00 to $165.00 and set a "neutral" rating on the stock in a report on Thursday, November 5th. Oppenheimer set a $200.00 target price on shares of Qualcomm in a report on Monday, July 27th. Freedom Broker cut shares of Qualcomm from a "buy" rating to a "hold" rating and reduced their target price for the company from $200.00 to $185.00 in a research report on Monday. The Goldman Sachs Group reissued a "neutral" rating on shares of Qualcomm in a research note on Thursday, November 5th. Finally, Freedom Capital upgraded shares of Qualcomm from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twenty-two have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $197.13.

Qualcomm Price Performance

Shares of NASDAQ QCOM opened at $177.14 on Wednesday. The firm has a market cap of $189.54 billion, a PE ratio of 13.95, a PEG ratio of 2.07 and a beta of 1.70. The firm has a fifty day moving average of $178.65 and a 200 day moving average of $169.90. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.14 and a current ratio of 1.86. Qualcomm has a one year low of $121.99 and a one year high of $259.92.

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 (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.01. The business had revenue of $10.44 billion for the quarter, compared to the consensus estimate of $10.12 billion. Qualcomm had a net margin of 31.60% and a return on equity of 30.62%. The company's revenue was down 8.4% compared to the same quarter last year. During the same period last year, the firm posted $3.00 earnings per share. As a group, research analysts predict that Qualcomm will post 6.75 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CAO Patricia Y. Grech sold 625 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $162.85, for a total value of $101,781.25. Following the completion of the transaction, the chief accounting officer directly owned 208 shares in the company, valued at approximately $33,872.80. This represents a 75.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the firm's stock in a transaction on Monday, November 9th. The stock was sold at an average price of $165.42, for a total value of $529,344.00. Following the sale, the executive vice president directly owned 39,379 shares of the company's stock, valued at approximately $6,514,074.18. This trade represents a 7.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 32,520 shares of company stock worth $6,101,411 over the last ninety days. 0.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Qualcomm

Several large investors have recently modified their holdings of QCOM. BlackRock Inc. acquired a new position in Qualcomm in the second quarter valued at about $17,583,115,000. State Street Corp increased its position in shares of Qualcomm by 1.3% during the second quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company's stock valued at $9,750,123,000 after acquiring an additional 671,537 shares during the last quarter. Van ECK Associates Corp raised its stake in shares of Qualcomm by 22.7% in the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company's stock valued at $3,178,872,000 after acquiring an additional 3,179,720 shares during the period. Amundi raised its stake in shares of Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock valued at $1,884,071,000 after acquiring an additional 4,942,908 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Qualcomm in the 2nd quarter valued at approximately $1,523,930,000. Institutional investors and hedge funds own 74.35% of the company's stock.

Qualcomm News Summary

Investors following QCOM have been watching these news items:

• Positive Sentiment: An AI-focused Linux desktop operating system being developed for Snapdragon PCs could support Qualcomm’s push to expand beyond smartphones and into AI-capable computers. Qualcomm AI PC partnership
• Neutral Sentiment: The SpaceX opportunity faces execution and competitive hurdles: one analysis warns that building a challenger to major mobile carriers could be difficult, and a possible Boost Mobile acquisition remains speculative. SpaceX deal and carrier challenges
• Negative Sentiment: Analyst coverage remains cautious: Bank of America maintained an underperform rating, while other reports point to falling earnings estimates and margin risks. A comparison also favored Silicon Motion on performance, estimates and valuation. Bank of America remains cautious

About Qualcomm

Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications. Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.

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