Qualcomm Incorporated $QCOM Stock Sold by VestGen Advisors LLC

Key Points

• VestGen Advisors reduced its Qualcomm stake by 33% in the third quarter, selling 9,705 shares and retaining 19,700 shares valued at approximately $3.6 million. Institutional investors collectively own 74.35% of QCOM.
• Qualcomm’s growth prospects are expanding beyond smartphones, with strong automotive performance and potential AI, edge-computing, and custom-silicon opportunities. However, concerns include expected earnings declines, soft auto-chip guidance, and recent insider selling.
• Analysts maintain a generally cautious outlook, with Qualcomm receiving an average “Hold” rating and a $205.83 price target. The stock recently traded at $185.41, while the company announced a quarterly dividend of $0.92 per share, yielding about 2% annually.

VestGen Advisors LLC lessened its stake in shares of Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 33.0% in the third quarter, according to its most recent filing with the SEC. The fund owned 19,700 shares of the wireless technology company's stock after selling 9,705 shares during the period. VestGen Advisors LLC's holdings in Qualcomm were worth $3,626,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Qualcomm in the second quarter worth about $17,583,115,000. State Street Corp raised its holdings in shares of Qualcomm by 1.3% during the second 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 period. Van ECK Associates Corp lifted its position in shares of 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 in the last quarter. Amundi lifted its position in shares of Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock valued at $1,884,071,000 after acquiring an additional 4,942,908 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Qualcomm in the 2nd quarter worth approximately $1,523,930,000. 74.35% of the stock is owned by institutional investors.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s investment case is broadening beyond smartphones. Recent coverage highlighted a 61% surge in automotive revenue, record automotive sales, and two hyperscaler custom-silicon agreements that could create longer-term growth in AI data centers and edge computing. Qualcomm Stock Has an AI Opportunity Most Nvidia Investors May Be Overlooking Qualcomm Automotive Revenue Hits Record
• Positive Sentiment: Ariel Global Fund identified Qualcomm as offering potential across AI, automotive, and edge computing. That view suggests some institutional investors see the shares as undervalued if these businesses reduce the company’s dependence on handset demand. Qualcomm Offers AI, Automotive, and Edge-Computing Growth Potential
• Neutral Sentiment: Analyst coverage comparing Qualcomm with IBM emphasized that both companies are pursuing AI growth, but differing valuations, competitive pressures, and execution prospects leave the relative upside uncertain. IBM vs. Qualcomm: Which AI Tech Giant Has More Upside Now?
• Neutral Sentiment: Technical coverage noted that QCOM reclaimed an important price level and edged higher, but questioned whether the move can hold without stronger fundamental confirmation. Qualcomm Reclaims a Key Level
• Negative Sentiment: Qualcomm’s upcoming fiscal fourth-quarter report is expected to show declining earnings, creating a near-term catalyst risk. The company’s latest quarter already included an earnings-per-share miss and a 4% year-over-year revenue decline, despite revenue exceeding expectations. Qualcomm Q4 Earnings Expected to Decline
• Negative Sentiment: Weak guidance from automotive-chip supplier NXP revived concerns about slowing auto-chip demand, pressuring semiconductor stocks including Qualcomm. Soft Guidance Revives Auto Chip Worries

Insider Transactions at Qualcomm

In related news, CAO Patricia Grech sold 625 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the transaction, the chief accounting officer owned 208 shares of the company's stock, valued at approximately $33,872.80. This trade represents a 75.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash Palkhiwala sold 2,500 shares of the firm's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $182.85, for a total transaction of $457,125.00. Following the transaction, the executive vice president owned 18,184 shares in the company, valued at $3,324,944.40. This represents a 12.09% decrease in their position. 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 a total of 33,458 shares of company stock valued at $6,198,144 in the last ninety days. 0.05% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several research firms have weighed in on QCOM. Wells Fargo & Company lowered their price objective on shares of Qualcomm from $265.00 to $170.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 30th. Robert W. Baird set a $400.00 target price on Qualcomm in a report on Thursday, July 30th. Cantor Fitzgerald decreased their target price on Qualcomm from $200.00 to $165.00 and set a "neutral" rating for the company in a research report on Monday, July 27th. Evercore set a $159.00 price target on Qualcomm in a report on Thursday, July 30th. Finally, Benchmark lowered their price target on Qualcomm from $300.00 to $270.00 and set a "buy" rating on the stock in a report on Monday, July 27th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $205.83.

Qualcomm Stock Performance

Shares of QCOM opened at $185.41 on Friday. The company's 50 day moving average price is $177.75 and its 200 day moving average price is $169.46. Qualcomm Incorporated has a 52 week low of $121.99 and a 52 week high of $259.92. The company has a market capitalization of $197.99 billion, a PE ratio of 21.46, a PEG ratio of 4.12 and a beta of 1.65. 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 (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing the consensus estimate of $2.23 by ($0.02). The company had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The firm's quarterly revenue was down 4.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.77 EPS. Research analysts expect that Qualcomm Incorporated will post 7.71 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be given a $0.92 dividend. This represents a $3.68 annualized dividend and a yield of 2.0%. 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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