Qualcomm Incorporated $QCOM Shares Purchased by AIA Group Ltd

Key Points

• AIA Group raised its Qualcomm stake by 75.1% in the third quarter, adding 5,333 shares to reach 12,432 shares valued at about $2.29 million.
• Qualcomm’s latest quarterly EPS and revenue slightly beat analyst expectations, but revenue declined 8.4% year over year; handset weakness and cautious guidance weighed on the outlook.
• A multiyear SpaceX agreement to supply platforms for Starlink Mobile’s U.S. terrestrial 5G network offers a potential growth opportunity beyond smartphones.

AIA Group Ltd increased its position in Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 75.1% in the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 12,432 shares of the wireless technology company's stock after acquiring an additional 5,333 shares during the quarter. AIA Group Ltd's holdings in Qualcomm were worth $2,288,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of QCOM. Baxter Bros Inc. purchased a new stake in Qualcomm during the 2nd quarter valued at about $17,844,000. Y Intercept Hong Kong Ltd bought a new stake in Qualcomm in the second quarter valued at approximately $28,068,000. Tensor Edge Capital LLC bought a new stake in shares of Qualcomm in the 2nd quarter worth approximately $147,315,000. Sawyer & Company Inc purchased a new position in shares of Qualcomm during the 3rd quarter worth approximately $2,403,000. Finally, Robinson Value Management Ltd. raised its holdings in Qualcomm by 40.5% in the third quarter. Robinson Value Management Ltd. now owns 34,184 shares of the wireless technology company's stock worth $6,291,000 after purchasing an additional 9,858 shares in the last quarter. 74.35% of the stock is owned by institutional investors.

Insiders Place Their Bets

In related news, EVP Ann C. Chaplin sold 1,827 shares of Qualcomm stock in a transaction that occurred on Friday, October 16th. The stock was sold at an average price of $174.75, for a total transaction of $319,268.25. Following the completion of the transaction, the executive vice president directly owned 25,770 shares in the company, valued at $4,503,307.50. The trade was a 6.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $162.85, for a total transaction of $101,781.25. Following the transaction, the chief accounting officer directly owned 208 shares in the company, valued at $33,872.80. The trade was a 75.03% decrease in their position. 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. Over the last ninety days, insiders sold 30,258 shares of company stock worth $5,727,616. 0.05% of the stock is owned by corporate insiders.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms for Starlink Mobile’s U.S. terrestrial 5G network under a multiyear agreement. Qualcomm called it its largest 5G initiative to date, creating an opportunity to expand beyond phones. SpaceX deal
• Positive Sentiment: Fiscal Q4 adjusted EPS of $2.17 slightly exceeded the $2.16 consensus, while revenue also topped estimates. Q4 results
• Negative Sentiment: Investors reacted to muted earnings guidance, with a memory shortage weighing on smartphone sales. Handset revenue dropped 26%, dragging down overall results; total revenue fell about 8% year over year and EPS declined from $3.00 a year earlier. Earnings outlook and handset weakness
• Negative Sentiment: Automotive revenue grew 90%, but the business remains too small to offset the handset slowdown, leaving near-term growth and profitability under pressure. Phone chip sales analysis

Analysts Set New Price Targets

QCOM has been the topic of several recent analyst reports. Robert W. Baird set a $400.00 target price on Qualcomm in a research note on Thursday, July 30th. Freedom Capital upgraded shares of Qualcomm from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Susquehanna lifted their target price on Qualcomm from $160.00 to $185.00 and gave the company a "neutral" rating in a research note on Wednesday, October 21st. The Goldman Sachs Group restated a "neutral" rating on shares of Qualcomm in a research report on Thursday. Finally, Morgan Stanley cut their price target on shares of Qualcomm from $231.00 to $220.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $205.48.

Qualcomm Price Performance

NASDAQ:QCOM opened at $173.19 on Thursday. The firm's fifty day moving average is $178.23 and its two-hundred day moving average is $169.48. The firm has a market cap of $184.94 billion, a price-to-earnings ratio of 20.05, a PEG ratio of 3.70 and a beta of 1.70. 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 Incorporated has a one year low of $121.99 and a one year high of $259.92.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.01. The business had revenue of $10.44 billion during the quarter, compared to analysts' expectations of $10.12 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The company's revenue for the quarter was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.00 EPS. Research analysts expect that Qualcomm Incorporated will post 7.71 EPS for the current year.

Qualcomm Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be paid a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, December 3rd. Qualcomm's dividend payout ratio is presently 42.59%.

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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