UG Investment Advisers Ltd. Acquires 217,042 Shares of Qualcomm Incorporated $QCOM

Key Points

• UG Investment Advisers opened a major Qualcomm position, buying 217,042 shares worth about $39.9 million in the third quarter. Qualcomm now represents 44.3% of the firm’s holdings and is its largest position.
• Institutional investors and hedge funds own 74.35% of Qualcomm. Analysts’ consensus rating is “Hold,” with an average price target of $197.13.
• Qualcomm narrowly beat quarterly earnings and revenue expectations, reporting EPS of $2.17 and revenue of $10.44 billion, though revenue fell 8.4% year over year. The company announced a quarterly dividend of $0.92 per share.

UG Investment Advisers Ltd. bought a new position in shares of Qualcomm Incorporated (NASDAQ:QCOM - Free Report) in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 217,042 shares of the wireless technology company's stock, valued at approximately $39,944,000. Qualcomm comprises about 44.3% of UG Investment Advisers Ltd.'s holdings, making the stock its largest position.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Van Strum & Towne Inc. boosted its position in shares of Qualcomm by 5.6% during the 3rd quarter. Van Strum & Towne Inc. now owns 23,902 shares of the wireless technology company's stock valued at $4,399,000 after purchasing an additional 1,260 shares in the last quarter. Alphabet Inc. acquired a new stake in Qualcomm during the third quarter worth approximately $547,884,000. Three Bridge Wealth Advisors LLC bought a new stake in Qualcomm in the third quarter worth approximately $47,000. Maryland State Retirement & Pension System increased its holdings in Qualcomm by 13.7% in the third quarter. Maryland State Retirement & Pension System now owns 64,768 shares of the wireless technology company's stock worth $11,920,000 after purchasing an additional 7,785 shares in the last quarter. Finally, Ritholtz Wealth Management lifted its stake in Qualcomm by 3.6% in the third quarter. Ritholtz Wealth Management now owns 24,586 shares of the wireless technology company's stock valued at $4,525,000 after buying an additional 860 shares during the period. Institutional investors and hedge funds own 74.35% of the company's stock.

Insider Activity

In related news, CAO Patricia Y. Grech sold 208 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $170.00, for a total value of $35,360.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction on Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the chief executive officer directly owned 177,568 shares of the company's stock, valued at approximately $35,513,600. The trade was a 5.33% 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. Over the last 90 days, insiders have sold 32,520 shares of company stock valued at $6,101,411. Corporate insiders own 0.05% of the company's stock.

Wall Street Analyst Weigh In

QCOM has been the topic of a number of research analyst reports. KeyCorp restated a "sector weight" rating on shares of Qualcomm in a report on Wednesday, September 9th. Piper Sandler reaffirmed a "neutral" rating on shares of Qualcomm in a research report on Thursday, November 5th. Citigroup lowered their price objective on shares of Qualcomm from $198.00 to $175.00 and set a "neutral" rating for the company in a research note on Wednesday, July 29th. TD Cowen dropped their target price on shares of Qualcomm from $200.00 to $185.00 and set a "buy" rating on the stock in a research report on Thursday, November 5th. Finally, Royal Bank Of Canada increased their target price on shares of Qualcomm from $160.00 to $180.00 and gave the stock a "sector perform" rating in a research note on Wednesday, September 9th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twenty-one have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Qualcomm currently has a consensus rating of "Hold" and a consensus target price of $197.13.

Qualcomm News Summary

Investors following QCOM have been watching these news items:

• Positive Sentiment: Qualcomm’s 5G partnership with SpaceX could create a new opportunity in network equipment. Amon called it a partnership that could drive innovation, though its commercial impact is not yet clear. Qualcomm CEO on SpaceX deal
• Neutral Sentiment: The SpaceX opportunity faces execution and competitive hurdles: one analysis warns that building a challenger to major mobile carriers could be difficult, and a possible Boost Mobile acquisition remains speculative. SpaceX deal and carrier challenges
• Negative Sentiment: Despite a quarterly earnings beat, reports cited handset weakness and uncertainty around data-center growth in explaining a sharp recent selloff. Investors are also weighing customer concentration, investment needs and potential margin pressure as Qualcomm ramps its data-center business. Qualcomm selloff and uncertainty

Qualcomm Stock Performance

Shares of Qualcomm stock opened at $177.14 on Friday. Qualcomm Incorporated has a one year low of $121.99 and a one year high of $259.92. The firm has a market capitalization of $189.54 billion, a price-to-earnings ratio of 13.95, a PEG ratio of 2.07 and a beta of 1.70. The business has a 50-day simple moving average of $178.65 and a 200 day simple moving average of $169.90. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.86 and a quick ratio of 1.14.

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, topping analysts' consensus estimates of $2.16 by $0.01. The business had revenue of $10.44 billion for the quarter, compared to the consensus estimate of $10.12 billion. Qualcomm had a return on equity of 30.62% and a net margin of 31.60%. The firm's revenue for the quarter was down 8.4% on a year-over-year basis. During the same period in the prior year, the business earned $3.00 EPS. On average, research analysts anticipate that Qualcomm Incorporated will post 6.75 earnings per share for the current fiscal year.

Qualcomm Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be issued a dividend of $0.92 per share. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.1%. Qualcomm's payout ratio is currently 28.98%.

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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