Qualcomm Incorporated $QCOM Stock Position Lowered by Alps Advisors Inc.

Key Points

• Alps Advisors cut its Qualcomm position by 46.9% in the third quarter, selling 21,436 shares and retaining 24,257 shares valued at about $4.46 million.
• Qualcomm modestly beat quarterly estimates, reporting $10.44 billion in revenue and $2.17 in adjusted EPS, but revenue fell 8.4% year over year and earnings declined from the prior-year quarter.
• Analyst sentiment is mixed: the consensus rating is Hold with an average price target of $197.55, while concerns include weak guidance, handset softness and rising component costs.

Alps Advisors Inc. trimmed its holdings in Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 46.9% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 24,257 shares of the wireless technology company's stock after selling 21,436 shares during the period. Alps Advisors Inc.'s holdings in Qualcomm were worth $4,464,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Qualcomm during the 2nd quarter valued at about $17,583,115,000. State Street Corp raised its holdings in Qualcomm by 1.3% in the 2nd quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company's stock valued at $9,750,123,000 after acquiring an additional 671,537 shares during the last quarter. Van ECK Associates Corp raised its holdings in Qualcomm by 22.7% in the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company's stock valued at $3,178,872,000 after acquiring an additional 3,179,720 shares during the last quarter. Amundi lifted its stake in Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock worth $1,884,071,000 after purchasing an additional 4,942,908 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in Qualcomm in the 2nd quarter worth approximately $1,523,930,000. 74.35% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Qualcomm

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

Qualcomm Price Performance

Shares of QCOM stock opened at $165.41 on Monday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.86 and a quick ratio of 1.14. The firm's 50-day moving average is $178.11 and its two-hundred day moving average is $169.52. Qualcomm Incorporated has a 12 month low of $121.99 and a 12 month high of $259.92. The company has a market capitalization of $176.99 billion, a PE ratio of 13.02, a price-to-earnings-growth ratio of 2.61 and a beta of 1.70.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings results 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. Qualcomm had a net margin of 31.60% and a return on equity of 30.62%. The business had revenue of $10.44 billion during the quarter, compared to analysts' expectations of $10.12 billion. During the same quarter in the prior year, the company posted $3.00 EPS. The business's revenue for the quarter was down 8.4% on a year-over-year basis. Analysts predict that Qualcomm Incorporated will post 7.16 earnings per share for the current year.

Qualcomm Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be issued a $0.92 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a yield of 2.2%. Qualcomm's dividend payout ratio is currently 28.98%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on QCOM. Rosenblatt Securities lowered their target price on Qualcomm from $235.00 to $205.00 and set a "buy" rating on the stock in a report on Thursday. Benchmark cut their price target on Qualcomm from $300.00 to $270.00 and set a "buy" rating for the company in a report on Monday, July 27th. Oppenheimer set a $200.00 price objective on Qualcomm in a research report on Monday, July 27th. The Goldman Sachs Group reiterated a "neutral" rating on shares of Qualcomm in a research report on Thursday. Finally, TD Cowen lowered their price objective on Qualcomm from $200.00 to $185.00 and set a "buy" rating on the stock in a research note on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $197.55.

Insiders Place Their Bets

In related news, CEO Cristiano Amon sold 10,000 shares of the stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $200.00, for a total value of $2,000,000.00. Following the completion of the transaction, the chief executive officer directly owned 177,568 shares in the company, valued at approximately $35,513,600. This represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Grech sold 625 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $162.85, for a total value of $101,781.25. Following the completion of the transaction, the chief accounting officer owned 208 shares of the company's stock, valued at $33,872.80. The trade was a 75.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 31,820 shares of company stock valued at $5,980,217. 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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