2,976,982 Shares in Qualcomm Incorporated $QCOM Bought by Alphabet Inc.

Key Points

• Alphabet purchased 2,976,982 Qualcomm shares in the third quarter, worth about $547.9 million; the position represents 0.28% of Qualcomm and 0.6% of Alphabet’s portfolio.
• Qualcomm reported quarterly revenue of $10.44 billion and EPS of $2.17, edging past analyst estimates, but revenue fell 8.4% year over year and EPS was down from $3.00 a year earlier.
• Qualcomm is pursuing growth beyond smartphones, including data-center targets of $5 billion in fiscal 2027 and $15 billion in fiscal 2029; investors remain cautious about handset weakness and the uncertainty, costs, and potential margin pressure of that expansion.

Alphabet Inc. purchased a new stake in shares of Qualcomm Incorporated (NASDAQ:QCOM - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 2,976,982 shares of the wireless technology company's stock, valued at approximately $547,884,000. Qualcomm accounts for approximately 0.6% of Alphabet Inc.'s portfolio, making the stock its 6th biggest holding. Alphabet Inc. owned about 0.28% of Qualcomm as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of QCOM. ABS Investment Management LLC acquired a new position in Qualcomm during the 2nd quarter valued at about $34,000. ABS Direct Equity Fund LLC bought a new position in Qualcomm in the 2nd quarter worth about $34,000. Mizuho Securities Co. Ltd. bought a new position in Qualcomm in the 3rd quarter worth about $35,000. Team Financial Group LLC acquired a new stake in shares of Qualcomm in the third quarter valued at approximately $38,000. Finally, Burk Holdings LLC increased its stake in shares of Qualcomm by 191.7% in the second quarter. Burk Holdings LLC now owns 210 shares of the wireless technology company's stock valued at $39,000 after purchasing an additional 138 shares during the period. Institutional investors own 74.35% of the company's stock.

Qualcomm Price Performance

NASDAQ:QCOM opened at $177.14 on Friday. The company has a quick ratio of 1.14, a current ratio of 1.86 and a debt-to-equity ratio of 0.42. The business's 50-day moving average price is $178.65 and its 200 day moving average price is $169.90. Qualcomm Incorporated has a 52-week low of $121.99 and a 52-week high of $259.92. The firm has a market cap of $189.54 billion, a P/E ratio of 13.95, a PEG ratio of 2.07 and a beta of 1.70.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share for the quarter, beating analysts' consensus estimates of $2.16 by $0.01. Qualcomm had a net margin of 31.60% and a return on equity of 30.62%. The company had revenue of $10.44 billion during the quarter, compared to the consensus estimate of $10.12 billion. During the same period in the prior year, the company earned $3.00 EPS. Qualcomm's revenue was down 8.4% on a year-over-year basis. As a group, sell-side analysts predict that Qualcomm Incorporated will post 6.75 earnings per share for the current fiscal year.

Qualcomm Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be given a dividend of $0.92 per share. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. Qualcomm's payout ratio is 28.98%.

Insider Activity at Qualcomm

In other news, CEO Cristiano Amon sold 10,000 shares of the company's stock in a transaction on Friday, September 25th. The stock was sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the chief executive officer directly owned 177,568 shares of the company's stock, valued at $35,513,600. This represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $175.06, for a total transaction of $437,650.00. Following the completion of the transaction, the executive vice president directly owned 20,799 shares in the company, valued at approximately $3,641,072.94. This trade represents a 10.73% decrease in their ownership of the stock. 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. Insiders sold 32,520 shares of company stock valued at $6,101,411 over the last ninety days. Company insiders own 0.05% of the company's stock.

Qualcomm News Roundup

These are some of the QCOM news items that stood out recently:

• Positive Sentiment: CEO Cristiano Amon defended Qualcomm’s data-center opportunity, expressing confidence in targets of $5 billion in fiscal 2027 sales and $15 billion by fiscal 2029. If achieved, the business could diversify revenue beyond smartphones. Qualcomm CEO on data-center goal
• Positive Sentiment: Qualcomm’s 5G partnership with SpaceX could create a new opportunity in network equipment. Amon called it a partnership that could drive innovation, though its commercial impact is not yet clear. Qualcomm CEO on SpaceX deal
• Negative Sentiment: Despite a quarterly earnings beat, reports cited handset weakness and uncertainty around data-center growth in explaining a sharp recent selloff. Investors are also weighing customer concentration, investment needs and potential margin pressure as Qualcomm ramps its data-center business. Qualcomm selloff and uncertainty

Analyst Ratings Changes

Several equities analysts have recently issued reports on QCOM shares. Piper Sandler reiterated a "neutral" rating on shares of Qualcomm in a research report on Thursday, November 5th. Zacks Research lowered Qualcomm from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 15th. Rosenblatt Securities lowered their target price on Qualcomm from $235.00 to $205.00 and set a "buy" rating on the stock in a research report on Thursday, November 5th. Sanford C. Bernstein cut their target price on Qualcomm from $165.00 to $155.00 and set a "market perform" rating on the stock in a research note on Monday, November 2nd. Finally, Cantor Fitzgerald reduced their price target on Qualcomm from $200.00 to $165.00 and set a "neutral" rating for the company in a research report on Monday, July 27th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twenty-one have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $197.13.

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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