Qualcomm Incorporated $QCOM Stock: King Luther Capital Management Corp Decreases Holdings

Key Points

• King Luther Capital Management reduced its Qualcomm stake by 1.3% in the third quarter, selling 5,793 shares and retaining 438,488 shares valued at about $80.7 million. Institutional investors overall own 74.35% of the stock, with other funds both adding to and trimming positions.
• Qualcomm slightly beat quarterly earnings and revenue estimates, reporting EPS of $2.17 and revenue of $10.44 billion, though revenue fell 8.4% year over year.
• Analysts have a consensus “Hold” rating on Qualcomm, with an average price target of $197.13. The company also announced a quarterly dividend of $0.92 per share, equivalent to a 2.1% yield.

King Luther Capital Management Corp cut its holdings in Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 1.3% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 438,488 shares of the wireless technology company's stock after selling 5,793 shares during the period. King Luther Capital Management Corp's holdings in Qualcomm were worth $80,699,000 as of its most recent filing with the SEC.

A number of other hedge funds have also bought and sold shares of the business. Maryland State Retirement & Pension System lifted its position in shares of Qualcomm by 13.7% during the 3rd quarter. Maryland State Retirement & Pension System now owns 64,768 shares of the wireless technology company's stock valued at $11,920,000 after acquiring an additional 7,785 shares during the period. Ritholtz Wealth Management increased its position in shares of Qualcomm by 3.6% in the third quarter. Ritholtz Wealth Management now owns 24,586 shares of the wireless technology company's stock worth $4,525,000 after purchasing an additional 860 shares during the period. UNIVEST FINANCIAL Corp increased its position in shares of Qualcomm by 18.1% in the third quarter. UNIVEST FINANCIAL Corp now owns 2,214 shares of the wireless technology company's stock worth $407,000 after purchasing an additional 340 shares during the period. Joel Isaacson & Co. LLC raised its stake in Qualcomm by 1.4% in the third quarter. Joel Isaacson & Co. LLC now owns 7,380 shares of the wireless technology company's stock valued at $1,358,000 after purchasing an additional 100 shares in the last quarter. Finally, Jefferies Financial Group Inc. raised its stake in Qualcomm by 1,650.5% in the third quarter. Jefferies Financial Group Inc. now owns 319,824 shares of the wireless technology company's stock valued at $58,860,000 after purchasing an additional 301,554 shares in the last quarter. 74.35% of the stock is owned by institutional investors.

More Qualcomm News

Investors following QCOM have been watching these news items:

• Positive Sentiment: ETFs bought $293.8 million of Qualcomm shares on Nov. 9, with 35 funds buying and 17 selling, pointing to net institutional demand. Article
• Neutral Sentiment: Qualcomm is pursuing AI data-center opportunities that could represent as much as $50 billion in market potential. Bank of America acknowledged the ambitions but maintained an “underperform” rating, reflecting uncertainty about the company’s ability to turn the opportunity into results. Article
• Negative Sentiment: Qualcomm’s handset business remains a concern as it shrinks, leaving investors to assess whether automotive and other newer businesses can offset pressure in the company’s core market. Article

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. KeyCorp reaffirmed a "sector weight" rating on shares of Qualcomm in a research report on Wednesday, September 9th. Susquehanna decreased their target price on shares of Qualcomm from $185.00 to $165.00 and set a "neutral" rating on the stock in a report on Thursday, November 5th. Zacks Research cut shares of Qualcomm from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 15th. Robert W. Baird set a $320.00 price target on shares of Qualcomm in a report on Thursday, November 5th. Finally, Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a "buy" rating on the stock in a research report on Monday, July 27th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twenty-one have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $197.13.

Qualcomm Price Performance

Qualcomm stock opened at $176.57 on Thursday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.14 and a current ratio of 1.86. Qualcomm Incorporated has a 52 week low of $121.99 and a 52 week high of $259.92. The stock has a market capitalization of $188.93 billion, a P/E ratio of 13.90, a price-to-earnings-growth ratio of 1.92 and a beta of 1.70. The stock has a fifty day moving average of $178.51 and a 200-day moving average of $169.78.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share for the quarter, beating the consensus estimate of $2.16 by $0.01. The business had revenue of $10.44 billion for the quarter, compared to analyst estimates of $10.12 billion. Qualcomm had a return on equity of 30.62% and a net margin of 31.60%. Qualcomm's revenue was down 8.4% compared to the same quarter last year. During the same period last year, the firm posted $3.00 earnings per share. On average, sell-side analysts expect that Qualcomm Incorporated will post 7.15 earnings per share for the current fiscal year.

Qualcomm Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders 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 2.1%. Qualcomm's payout ratio is presently 28.98%.

Insider Buying and Selling

In related news, EVP Heather S. Ace sold 3,200 shares of the company's stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $165.42, for a total transaction of $529,344.00. Following the completion of 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the company's stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $175.06, for a total transaction of $437,650.00. Following the transaction, the executive vice president owned 20,799 shares of the company's stock, valued at approximately $3,641,072.94. This represents a 10.73% 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 32,520 shares of company stock worth $6,101,411 in the last quarter. Corporate insiders own 0.05% of the company's stock.

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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