Legato Capital Management LLC Acquires 6,917 Shares of Qualcomm Incorporated $QCOM

Key Points

• Legato Capital Management increased its Qualcomm stake by 24.7% in the fourth quarter, buying 6,917 additional shares and bringing its total holdings to 34,943 shares worth about $5.98 million.
• Qualcomm reported better-than-expected quarterly earnings, with EPS of $2.65 topping estimates and revenue of $10.60 billion roughly in line with forecasts, even though revenue declined 3.5% year over year.
• The company also announced a $20 billion share buyback and raised its quarterly dividend to $0.92 per share, signaling confidence in its capital returns to shareholders.

Legato Capital Management LLC boosted its holdings in Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 24.7% during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 34,943 shares of the wireless technology company's stock after acquiring an additional 6,917 shares during the quarter. Qualcomm accounts for about 0.5% of Legato Capital Management LLC's investment portfolio, making the stock its 26th largest position. Legato Capital Management LLC's holdings in Qualcomm were worth $5,977,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the business. Lloyd Advisory Services LLC. bought a new position in Qualcomm in the 4th quarter worth about $124,000. LSV Asset Management increased its stake in Qualcomm by 1.7% in the 4th quarter. LSV Asset Management now owns 3,461,770 shares of the wireless technology company's stock worth $592,136,000 after acquiring an additional 58,630 shares during the last quarter. Platt Wealth Management LLC bought a new position in Qualcomm in the 4th quarter worth about $484,000. Advisory Alpha LLC increased its stake in Qualcomm by 8.1% in the 4th quarter. Advisory Alpha LLC now owns 6,425 shares of the wireless technology company's stock worth $1,099,000 after acquiring an additional 481 shares during the last quarter. Finally, Evoke Wealth LLC increased its stake in Qualcomm by 28.4% in the 4th quarter. Evoke Wealth LLC now owns 31,528 shares of the wireless technology company's stock worth $5,393,000 after acquiring an additional 6,964 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors.

Qualcomm Stock Performance

Shares of NASDAQ QCOM opened at $238.16 on Friday. The stock has a market cap of $251.02 billion, a price-to-earnings ratio of 25.89, a P/E/G ratio of 26.43 and a beta of 1.49. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. Qualcomm Incorporated has a 1-year low of $121.99 and a 1-year high of $247.90. The stock's 50-day moving average is $154.82 and its 200 day moving average is $158.89.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping analysts' consensus estimates of $2.56 by $0.09. The business had revenue of $10.60 billion for the quarter, compared to analysts' expectations of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business's quarterly revenue was down 3.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, sell-side analysts anticipate that Qualcomm Incorporated will post 7.99 EPS for the current fiscal year.

Qualcomm announced that its board has authorized a stock buyback plan on Tuesday, March 17th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the wireless technology company to purchase up to 14.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Qualcomm Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a $0.92 dividend. The ex-dividend date is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.5%. This is an increase from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is 38.70%.

Insiders Place Their Bets

In other news, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the sale, the chief executive officer directly owned 197,568 shares in the company, valued at approximately $35,562,240. This trade represents a 4.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of Qualcomm stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 19,306 shares of company stock valued at $3,435,583 in the last 90 days. 0.05% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Citigroup upped their target price on Qualcomm from $140.00 to $160.00 and gave the stock a "neutral" rating in a research note on Thursday, April 30th. DZ Bank lowered Qualcomm from a "buy" rating to a "hold" rating and set a $195.00 target price on the stock. in a research note on Friday, May 8th. Morgan Stanley began coverage on Qualcomm in a research note on Friday, May 8th. They issued an "overweight" rating on the stock. Piper Sandler reissued an "overweight" rating and set a $200.00 price objective on shares of Qualcomm in a report on Thursday, February 5th. Finally, Sanford C. Bernstein reissued a "market perform" rating and set a $140.00 price objective (down from $175.00) on shares of Qualcomm in a report on Thursday, March 26th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $181.79.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Stellantis expanded its multi-year technology partnership with Qualcomm, strengthening Qualcomm’s position in AI-enabled connected and autonomous vehicles. Qualcomm soars 12% as Stellantis deepens AI vehicle partnership
• Positive Sentiment: Analysts and market commentary highlighted Qualcomm’s strong comeback and suggested the rally may continue, with some calling for meaningful further upside. Prediction: Analysts Say Qualcomm Stock Is Set For A Massive Breakout
• Neutral Sentiment: Additional coverage framed Qualcomm as a beneficiary of broader AI and mobile-chip enthusiasm, with shares moving alongside other chip names such as Skyworks and Qorvo. Qualcomm Surges 12%, Skyworks Rallies 9%, Qorvo Rises 7%
• Neutral Sentiment: Insider and congressional stock sales were disclosed, but they appear modest relative to Qualcomm’s size and some transactions were pre-arranged, so the impact is likely limited. Patricia Grech Sells 829 Shares of Qualcomm NASDAQ: QCOM Stock

Qualcomm Company Profile

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.

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