Retirement Systems of Alabama Sells 419,047 Shares of Qualcomm Incorporated $QCOM

Key Points

• Retirement Systems of Alabama cut its Qualcomm stake by 65.2% in the third quarter, selling 419,047 shares and retaining 223,981 shares worth about $41.2 million.
• Qualcomm narrowly beat quarterly earnings and revenue estimates, reporting EPS of $2.17 and revenue of $10.44 billion; revenue was down 8.4% year over year. Analysts’ consensus rating was Hold, with an average price target of $197.13.
• Qualcomm declared a quarterly dividend of $0.92 per share, equivalent to $3.68 annually and a 2.1% yield.

Retirement Systems of Alabama lessened its stake in shares of Qualcomm Incorporated (NASDAQ:QCOM - Free Report) by 65.2% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 223,981 shares of the wireless technology company's stock after selling 419,047 shares during the quarter. Retirement Systems of Alabama's holdings in Qualcomm were worth $41,221,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Qualcomm during the second quarter worth about $17,583,115,000. Bank of New York Mellon Corp purchased a new position in shares of Qualcomm in the second quarter valued at approximately $1,523,930,000. Deutsche Bank AG acquired a new position in shares of Qualcomm in the second quarter valued at approximately $1,178,349,000. Amundi grew its holdings in shares of Qualcomm by 94.1% in the second quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock valued at $1,884,071,000 after purchasing an additional 4,942,908 shares in the last quarter. Finally, Van ECK Associates Corp grew its holdings in shares of Qualcomm by 22.7% in the second 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 purchasing an additional 3,179,720 shares in the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CAO Patricia Grech sold 208 shares of the firm's 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather Ace sold 3,200 shares of the firm's stock in a transaction 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 sale, the executive vice president owned 39,379 shares in the company, valued at $6,514,074.18. The trade was a 7.52% 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 90 days, insiders sold 32,520 shares of company stock worth $6,101,411. Corporate insiders own 0.05% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Robert W. Baird set a $320.00 target price on shares of Qualcomm in a research note on Thursday, November 5th. HSBC reissued a "hold" rating on shares of Qualcomm in a research report on Wednesday, July 15th. Sanford C. Bernstein decreased their price target on shares of Qualcomm from $165.00 to $155.00 and set a "market perform" rating for the company in a research report on Monday, November 2nd. TD Cowen dropped their price target on shares of Qualcomm from $200.00 to $185.00 and set a "buy" rating for the company in a research note on Thursday, November 5th. Finally, Freedom Capital raised Qualcomm from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twenty-one have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Qualcomm has a consensus rating of "Hold" and a consensus target price of $197.13.

Qualcomm Stock Performance

Shares of Qualcomm stock opened at $173.53 on Wednesday. Qualcomm Incorporated has a one year low of $121.99 and a one year high of $259.92. The company has a market cap of $185.68 billion, a PE ratio of 13.66, a P/E/G ratio of 2.71 and a beta of 1.70. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.14 and a current ratio of 1.86. The business has a 50-day simple moving average of $178.31 and a 200-day simple moving average of $169.68.

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

Qualcomm Announces Dividend

The company also recently disclosed 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. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. Qualcomm's dividend payout ratio is currently 28.98%.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Automotive revenue reportedly reached a record $1.99 billion, up 89%, and Qualcomm expects non-handset revenue to grow more than 60% in fiscal 2027. Those businesses could help offset softness in smartphones. Article
• Positive Sentiment: ETFs recorded $28.3 million in net QCOM purchases on Nov. 5, with more funds adding shares than trimming them—one indication of institutional demand. Article
• Neutral Sentiment: EVP Heather Ace sold 3,200 shares under a pre-arranged Rule 10b5-1 plan and retained 39,379 shares, making the transaction a less direct signal about her view of the company. SEC filing
• Negative Sentiment: Freedom Broker downgraded Qualcomm from Buy to Hold and cut its price target to $185 from $200, citing expectations that investment in newer growth businesses will pressure margins longer than anticipated. Article
• Negative Sentiment: Handset revenue reportedly fell 26%, while earnings guidance was below expectations, renewing concerns about the company’s dependence on its smartphone-chip business. Article

Qualcomm Profile

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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