Primecap Management Co. CA Sells 466,337 Shares of Qualcomm Incorporated $QCOM

Key Points

• Primecap Management cut its Qualcomm stake by 66.1% in the second quarter, selling 466,337 shares and retaining 239,250 shares valued at approximately $44.2 million. Institutional investors collectively own 74.35% of Qualcomm.
• Analyst sentiment remains mixed, with the stock carrying an average rating of “Hold” and an average price target of $203.76. Recent targets range from $220 to $400, alongside both buy and hold recommendations.
• Qualcomm reported quarterly revenue of $9.95 billion, exceeding estimates, but its $2.21 EPS slightly missed expectations and revenue declined 4% year over year. The company declared a quarterly dividend of $0.92 per share, representing a 2.2% yield.

Primecap Management Co. CA decreased its position in Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 66.1% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 239,250 shares of the wireless technology company's stock after selling 466,337 shares during the quarter. Primecap Management Co. CA's holdings in Qualcomm were worth $44,211,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also bought and sold shares of the company. Baxter Bros Inc. bought a new stake in shares of Qualcomm during the 2nd quarter valued at about $17,844,000. MUFG Securities EMEA plc increased its position in shares of Qualcomm by 112.2% during the fourth quarter. MUFG Securities EMEA plc now owns 43,986 shares of the wireless technology company's stock valued at $7,524,000 after buying an additional 23,262 shares during the period. Swedbank AB raised its stake in Qualcomm by 1.5% in the fourth quarter. Swedbank AB now owns 1,533,420 shares of the wireless technology company's stock worth $262,291,000 after buying an additional 23,110 shares in the last quarter. Sequoia Financial Advisors LLC raised its stake in Qualcomm by 5.7% in the fourth quarter. Sequoia Financial Advisors LLC now owns 143,690 shares of the wireless technology company's stock worth $24,578,000 after buying an additional 7,804 shares in the last quarter. Finally, Valley Wealth Managers Inc. lifted its holdings in Qualcomm by 6.1% in the fourth quarter. Valley Wealth Managers Inc. now owns 40,009 shares of the wireless technology company's stock worth $6,844,000 after buying an additional 2,288 shares during the period. 74.35% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. HSBC reaffirmed a "hold" rating on shares of Qualcomm in a research report on Wednesday, July 15th. Tigress Financial raised their target price on Qualcomm from $270.00 to $280.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Morgan Stanley dropped their price target on Qualcomm from $231.00 to $220.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Robert W. Baird set a $400.00 price objective on Qualcomm in a report on Thursday, July 30th. Finally, Monness Crespi & Hardt raised Qualcomm to a "buy" rating in a research report on Thursday, June 25th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twenty have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $203.76.

Qualcomm Price Performance

Shares of NASDAQ QCOM opened at $163.72 on Thursday. The company has a 50 day simple moving average of $174.96 and a two-hundred day simple moving average of $168.48. Qualcomm Incorporated has a fifty-two week low of $121.99 and a fifty-two week high of $259.92. The company has a market capitalization of $171.94 billion, a price-to-earnings ratio of 18.95, a P/E/G ratio of 14.82 and a beta of 1.65. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing analysts' consensus estimates of $2.23 by ($0.02). The company had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.69 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.The business's revenue for the quarter was down 4.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.77 earnings per share. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. Analysts expect that Qualcomm Incorporated will post 7.74 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.2%. Qualcomm's dividend payout ratio (DPR) is presently 42.59%.

Insider Transactions at Qualcomm

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction dated Tuesday, July 14th. The shares were sold at an average price of $180.81, for a total transaction of $452,025.00. Following the completion of the sale, the executive vice president directly owned 23,184 shares in the company, valued at approximately $4,191,899.04. This trade represents a 9.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 625 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the sale, the chief accounting officer owned 208 shares of the company's stock, valued at approximately $33,872.80. This represents a 75.03% 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. Insiders sold a total of 11,325 shares of company stock valued at $1,925,859 in the last quarter. 0.05% of the stock is owned by insiders.

Qualcomm 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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