Alta Advisers Ltd Purchases 3,325 Shares of Qualcomm Incorporated $QCOM

Key Points

• Alta Advisers increased its Qualcomm stake by 77.7% in the third quarter, purchasing 3,325 shares and bringing its holdings to 7,606 shares, valued at about $1.4 million.
• Qualcomm reported quarterly revenue of $10.44 billion and EPS of $2.17, slightly topping analyst expectations, but revenue fell 8.4% year over year. Weak handset-chip demand and cautious profit outlook remain concerns despite growth opportunities in automotive and data centers.
• Analyst sentiment is mixed, with Qualcomm carrying a consensus “Hold” rating and an average price target of $197.55; the company also announced a quarterly dividend of $0.92 per share.

Alta Advisers Ltd grew its position in Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 77.7% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 7,606 shares of the wireless technology company's stock after buying an additional 3,325 shares during the period. Alta Advisers Ltd's holdings in Qualcomm were worth $1,400,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in QCOM. BlackRock Inc. acquired a new stake in shares of Qualcomm during the 2nd quarter worth approximately $17,583,115,000. Bank of New York Mellon Corp acquired a new position in Qualcomm in the second quarter valued at approximately $1,523,930,000. Deutsche Bank AG acquired a new position in Qualcomm in the second quarter valued at approximately $1,178,349,000. Amundi lifted its holdings in Qualcomm by 94.1% in the second quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock valued at $1,884,071,000 after buying an additional 4,942,908 shares during the period. Finally, Van ECK Associates Corp boosted its stake in Qualcomm by 22.7% in the second 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 last quarter. 74.35% of the stock is owned by institutional investors and hedge funds.

Qualcomm Stock Performance

Shares of Qualcomm stock opened at $156.75 on Friday. The company has a market capitalization of $167.38 billion, a PE ratio of 22.41, a PEG ratio of 3.90 and a beta of 1.70. Qualcomm Incorporated has a 12 month low of $121.99 and a 12 month high of $259.92. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46. The stock's fifty day simple moving average is $178.09 and its 200 day simple moving average is $169.47.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.16 by $0.01. Qualcomm had a return on equity of 31.91% and a net margin of 31.60%. The firm had revenue of $10.44 billion during the quarter, compared to analysts' expectations of $10.12 billion. During the same period in the previous year, the firm earned $3.00 earnings per share. The company's revenue was down 8.4% on a year-over-year basis. On average, research analysts predict that Qualcomm Incorporated will post 7.17 EPS for the current year.

Qualcomm Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be paid a $0.92 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 annualized dividend and a yield of 2.3%. Qualcomm's payout ratio is presently 42.59%.

Insider Transactions at Qualcomm

In other Qualcomm news, CAO Patricia Grech sold 208 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $170.00, for a total transaction of $35,360.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano Amon sold 10,000 shares of the firm's stock in a transaction that occurred 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 transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 30,258 shares of company stock worth $5,727,616. 0.05% of the stock is currently owned by insiders.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reported fiscal Q4 revenue of about $10.44 billion and adjusted EPS of $2.17, slightly exceeding consensus. Automotive revenue grew strongly, and management sees potential for substantial data-center revenue growth. Article: 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. 5G network, a multiyear deal that offers diversification beyond smartphone chips. Article: SpaceX signs deal with Qualcomm to provide network technology for U.S. mobile service
• Neutral Sentiment: Analysts cut price targets following results, though views remain mixed: UBS and JPMorgan moved to neutral, while TD Cowen and Rosenblatt retained buy ratings. The revisions reflect increased caution but still imply potential upside from the cited share price.
• Negative Sentiment: The earnings beat was overshadowed by weaker profit guidance and falling handset-chip demand. Revenue declined year over year, with handset weakness—including reduced Apple-related revenue—contributing to the pressure; memory and component costs may also weigh on margins. Article: Qualcomm slumps as weak smartphone chip sales overshadow data-center momentum
• Negative Sentiment: Investors may also be wary that data-center expansion requires heavy investment and could dilute near-term margins, while automotive and other newer businesses have yet to offset handset weakness fully. Article: Qualcomm's Data Center Investments Could Weigh on Near-Term Margins, RBC Says

Analyst Upgrades and Downgrades

QCOM has been the subject of a number of analyst reports. Citigroup lowered their target price on shares of Qualcomm from $198.00 to $175.00 and set a "neutral" rating for the company in a report on Wednesday, July 29th. JPMorgan Chase & Co. cut their price target on Qualcomm from $215.00 to $200.00 and set a "neutral" rating on the stock in a research note on Thursday. Susquehanna cut their price target on Qualcomm from $185.00 to $165.00 and set a "neutral" rating on the stock in a research note on Thursday. Weiss Ratings restated a "hold (c)" rating on shares of Qualcomm in a research report on Monday, September 21st. Finally, Robert W. Baird set a $320.00 price objective on Qualcomm in a research note on Thursday. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $197.55.

Qualcomm Profile

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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