Qualcomm Incorporated $QCOM Holdings Cut by Narwhal Capital Management

Key Points

• Narwhal Capital Management cut its Qualcomm stake by 28.9% in the third quarter, selling 13,967 shares; it retained 34,325 shares valued at about $6.3 million.
• Qualcomm beat quarterly estimates with EPS of $2.17 and revenue of $10.44 billion, but revenue fell 8.4% year over year. The company also declared a quarterly dividend of $0.92 per share.
• Analyst sentiment is mostly neutral: 21 of 40 analysts rate the stock a Hold, with a consensus price target of $197.13; several firms recently lowered their targets.

Narwhal Capital Management reduced its position in shares of Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 28.9% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 34,325 shares of the wireless technology company's stock after selling 13,967 shares during the period. Narwhal Capital Management's holdings in Qualcomm were worth $6,317,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of QCOM. ABS Investment Management LLC purchased a new stake in shares of Qualcomm in the 2nd quarter valued at approximately $34,000. ABS Direct Equity Fund LLC acquired a new stake in shares of Qualcomm during the 2nd quarter worth approximately $34,000. Mizuho Securities Co. Ltd. acquired a new stake in shares of Qualcomm during the 3rd quarter worth approximately $35,000. Team Financial Group LLC acquired a new stake in shares of Qualcomm during the 3rd quarter worth approximately $38,000. Finally, Burk Holdings LLC raised its position in shares of Qualcomm by 191.7% during the 2nd quarter. Burk Holdings LLC now owns 210 shares of the wireless technology company's stock valued at $39,000 after buying an additional 138 shares during the period. 74.35% of the stock is owned by hedge funds and other institutional investors.

Qualcomm Trading Up 1.2%

Shares of QCOM stock opened at $173.53 on Wednesday. Qualcomm Incorporated has a 1-year low of $121.99 and a 1-year high of $259.92. The firm has a market cap of $185.68 billion, a PE ratio of 13.66, a price-to-earnings-growth ratio of 2.71 and a beta of 1.70. The company has a 50-day moving average of $178.31 and a two-hundred day moving average of $169.68. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.86 and a quick ratio of 1.14.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its quarterly 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. 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 business's revenue was down 8.4% on a year-over-year basis. During the same period in the previous year, the firm earned $3.00 EPS. On average, analysts predict that Qualcomm Incorporated will post 7.15 EPS for the current year.

Qualcomm Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors 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 dividend payout ratio (DPR) is presently 28.98%.

Wall Street Analyst Weigh In

A number of research analysts recently commented on QCOM shares. 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. JPMorgan Chase & Co. lowered their price objective on Qualcomm from $215.00 to $200.00 and set a "neutral" rating for the company in a research report on Thursday, November 5th. Morgan Stanley cut their target price on Qualcomm from $231.00 to $220.00 and set an "equal weight" rating for the company in a research note on Thursday, July 30th. The Goldman Sachs Group restated a "neutral" rating on shares of Qualcomm in a research report on Thursday, November 5th. Finally, Cantor Fitzgerald decreased their price target on Qualcomm from $200.00 to $165.00 and set a "neutral" rating on the stock in a research note on Monday, July 27th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twenty-one have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Qualcomm has an average rating of "Hold" and a consensus target price of $197.13.

Insider Transactions at Qualcomm

In other Qualcomm news, EVP Heather S. Ace sold 3,200 shares of the company's stock in a transaction on Monday, November 9th. The stock was sold at an average price of $165.42, for a total transaction of $529,344.00. Following the transaction, the executive vice president directly owned 39,379 shares in the company, valued at $6,514,074.18. This represents a 7.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, CAO Patricia Y. Grech sold 208 shares of the company's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $170.00, for a total value of $35,360.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 32,520 shares of company stock worth $6,101,411 in the last three months. Company insiders own 0.05% of the company's stock.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Automotive revenue reportedly reached a record $1.99 billion, up 89%, and Qualcomm expects non-handset revenue to grow more than 60% in fiscal 2027. Those businesses could help offset softness in smartphones. Article
• Positive Sentiment: ETFs recorded $28.3 million in net QCOM purchases on Nov. 5, with more funds adding shares than trimming them—one indication of institutional demand. Article
• Neutral Sentiment: EVP Heather Ace sold 3,200 shares under a pre-arranged Rule 10b5-1 plan and retained 39,379 shares, making the transaction a less direct signal about her view of the company. SEC filing
• Negative Sentiment: Freedom Broker downgraded Qualcomm from Buy to Hold and cut its price target to $185 from $200, citing expectations that investment in newer growth businesses will pressure margins longer than anticipated. Article
• Negative Sentiment: Handset revenue reportedly fell 26%, while earnings guidance was below expectations, renewing concerns about the company’s dependence on its smartphone-chip business. Article

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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