Qualcomm Incorporated $QCOM Stock: Cullinan Associates Inc. Boosts Holdings

Key Points

• Cullinan Associates increased its Qualcomm stake by 11.3% in the third quarter, adding 5,629 shares to hold 55,373 shares valued at about $10.2 million. Institutional investors own 74.35% of the stock.
• Qualcomm beat quarterly estimates with $2.17 in EPS and $10.44 billion in revenue, but revenue fell 8.4% year over year and earnings declined from the prior-year quarter. The company declared a $0.92 quarterly dividend, equal to a 2.2% yield.
• Analysts’ consensus rating is Hold, with an average price target of $197.55; several firms recently cut their targets amid concerns including handset softness, costs, and margins.

Cullinan Associates Inc. raised its stake in shares of Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 11.3% in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 55,373 shares of the wireless technology company's stock after purchasing an additional 5,629 shares during the period. Cullinan Associates Inc.'s holdings in Qualcomm were worth $10,191,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of QCOM. ABS Investment Management LLC bought a new stake in shares of Qualcomm in the 2nd quarter valued at about $34,000. ABS Direct Equity Fund LLC acquired a new stake in shares of Qualcomm in the second quarter valued at about $34,000. Team Financial Group LLC acquired a new stake in shares of Qualcomm in the third quarter valued at about $38,000. Burk Holdings LLC increased its stake in shares of Qualcomm by 191.7% in the second 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. Finally, Harborfront Financial Group LLC bought a new position in shares of Qualcomm during the second quarter worth about $41,000. 74.35% of the stock is owned by institutional investors.

Qualcomm Stock Performance

Shares of QCOM opened at $165.41 on Friday. The company has a current ratio of 1.86, a quick ratio of 1.28 and a debt-to-equity ratio of 0.42. The firm's fifty day simple moving average is $178.11 and its two-hundred day simple moving average is $169.52. Qualcomm Incorporated has a 12 month low of $121.99 and a 12 month high of $259.92. The stock has a market capitalization of $176.99 billion, a P/E ratio of 13.02, a price-to-earnings-growth ratio of 3.73 and a beta of 1.70.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.01. Qualcomm had a return on equity of 30.62% and a net margin of 31.60%. The firm had revenue of $10.44 billion during the quarter, compared to analyst estimates of $10.12 billion. During the same period last year, the company posted $3.00 EPS. The business's quarterly revenue was down 8.4% on a year-over-year basis. As a group, analysts predict that Qualcomm Incorporated will post 7.16 EPS for the current year.

Qualcomm Announces Dividend

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. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 annualized dividend and a yield of 2.2%. Qualcomm's dividend payout ratio (DPR) is currently 28.98%.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s fiscal Q4 revenue of $10.44 billion and non-GAAP EPS of $2.17 edged past estimates. Automotive growth and the company’s data-center ambitions offer potential sources of diversification. Article: Is Qualcomm Stock Worth Buying After Mixed Q4 Results?
• Positive Sentiment: A broader market recovery helped lift shares after Thursday’s sharp sell-off, as investors reassessed fears that election-related policy changes could slow data-center investment. Article: Tech executives react to post-midterm AI sell-off
• Positive Sentiment: Alphabet disclosed a $548 million Qualcomm stake, a potentially supportive signal of institutional investor interest. Article: Alphabet discloses Qualcomm stake
• Positive Sentiment: Qualcomm is also set to provide chips and software for SpaceX’s planned terrestrial mobile network, adding a potential opportunity beyond its traditional handset market. Article: SpaceX Qualcomm 5G deal
• Neutral Sentiment: EVP Ann Chaplin sold 1,501 shares under a pre-arranged Rule 10b5-1 plan and retained 27,271 shares; the planned sale may carry limited signaling weight. SEC filing
• Negative Sentiment: Despite the beat, year-over-year revenue and earnings declined, and weak profit guidance, handset softness and rising component costs are weighing on expectations. Analysts have also cut price targets, while concerns about data-center investment and margins remain. Article: Qualcomm beat earnings, but its fastest-growing businesses have a catch

Insiders Place Their Bets

In other news, CAO Patricia Grech sold 208 shares of Qualcomm stock in a transaction on Monday, August 31st. The shares were sold at an average price of $170.00, for a total value of $35,360.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 dated Friday, September 25th. The shares were sold at an average price of $200.00, for a total value of $2,000,000.00. Following the completion of the sale, the chief executive officer owned 177,568 shares of the company's stock, valued at approximately $35,513,600. This represents a 5.33% decrease in their ownership of the stock. 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. In the last three months, insiders have sold 31,820 shares of company stock valued at $5,980,217. Company insiders own 0.05% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on QCOM shares. Royal Bank Of Canada lifted their price objective on Qualcomm from $160.00 to $180.00 and gave the stock a "sector perform" rating in a research note on Wednesday, September 9th. Rosenblatt Securities reduced their target price on Qualcomm from $235.00 to $205.00 and set a "buy" rating on the stock in a report on Thursday. KeyCorp reissued a "sector weight" rating on shares of Qualcomm in a research report on Wednesday, September 9th. Benchmark lowered their price target on shares of Qualcomm from $300.00 to $270.00 and set a "buy" rating for the company in a report on Monday, July 27th. Finally, TD Cowen lowered their price target on shares of Qualcomm from $200.00 to $185.00 and set a "buy" rating for the company in a report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $197.55.

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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