Qualcomm (NASDAQ:QCOM) EVP Ann Chaplin Sells 1,501 Shares of Company Stock

Key Points

• Qualcomm EVP Ann Chaplin sold 1,501 shares for approximately $242,472 under a pre-arranged Rule 10b5-1 plan, reducing her stake by 5.22% to 27,271 shares.
• Qualcomm narrowly beat quarterly EPS and revenue estimates, reporting $2.17 per share and $10.44 billion in revenue; both earnings and revenue declined year over year.
• Analyst sentiment is mostly cautious, with a consensus “Hold” rating and a $197.55 average price target. Several firms recently lowered their targets.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) EVP Ann Chaplin sold 1,501 shares of the business's stock in a transaction on Friday, November 6th. The stock was sold at an average price of $161.54, for a total value of $242,471.54. Following the completion of the sale, the executive vice president directly owned 27,271 shares in the company, valued at $4,405,357.34. This represents a 5.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Qualcomm Price Performance

Shares of QCOM traded up $8.66 during trading hours on Friday, hitting $165.41. 19,673,504 shares of the company were exchanged, compared to its average volume of 15,203,176. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28. Qualcomm Incorporated has a one year low of $121.99 and a one year high of $259.92. The company has a market capitalization of $176.63 billion, a PE ratio of 13.02, a PEG ratio of 3.90 and a beta of 1.70. The firm has a fifty day simple moving average of $178.09 and a 200-day simple moving average of $169.47.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.01. The firm had revenue of $10.44 billion for the quarter, compared to analysts' expectations of $10.12 billion. Qualcomm had a net margin of 31.60% and a return on equity of 31.91%. The company's quarterly revenue was down 8.4% compared to the same quarter last year. During the same period in the previous year, the company posted $3.00 EPS. As a group, sell-side analysts predict that Qualcomm Incorporated will post 7.17 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. Stockholders of record on Thursday, December 3rd will be paid a $0.92 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.2%. Qualcomm's payout ratio is presently 28.98%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on QCOM shares. Sanford C. Bernstein cut their price objective on Qualcomm from $165.00 to $155.00 and set a "market perform" rating for the company in a report on Monday. Barclays reduced their target price on Qualcomm from $180.00 to $150.00 and set an "underweight" rating on the stock in a report on Thursday. Susquehanna decreased their price target on shares of Qualcomm from $185.00 to $165.00 and set a "neutral" rating for the company in a research note on Thursday. Cantor Fitzgerald lowered their target price on shares of Qualcomm from $200.00 to $165.00 and set a "neutral" rating on the stock in a report on Monday, July 27th. Finally, KeyCorp reissued a "sector weight" rating on shares of Qualcomm in a report on Wednesday, September 9th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, Qualcomm has an average rating of "Hold" and an average target price of $197.55.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s fiscal Q4 adjusted EPS of $2.17 and revenue of $10.44 billion edged past consensus estimates. Automotive growth and the company’s data-center ambitions offer potential to diversify beyond mobile chips. Article: Is Qualcomm Stock Worth Buying After Mixed Q4 Results?
• Positive Sentiment: Alphabet disclosed a $548 million Qualcomm stake, a potentially supportive signal of institutional interest. Article: Alphabet discloses $548 million worth of Qualcomm stake
• Positive Sentiment: The shares’ recovery also comes as markets claw back some of Thursday’s broad technology selloff, which was driven partly by concerns that post-election data-center regulation could slow AI investment. Article: OpenAI, Arm and Qualcomm executives react to post-midterm AI sell-off
• Neutral Sentiment: Qualcomm’s SpaceX agreement to supply technology for a planned terrestrial 5G network adds a potential new customer and use case, though its financial contribution is not yet clear. Article: SpaceX Makes Its Biggest Move Yet Against Telecom Giants With Qualcomm 5G Deal
• Negative Sentiment: Despite the earnings beat, revenue and EPS were down year over year, and investors remain concerned about soft guidance, falling handset demand, Apple’s shift toward in-house modems and rising component costs pressuring margins. Article: Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
• Negative Sentiment: Analyst caution may limit the recovery: Susquehanna cut its target to $165 and maintained a neutral rating, while a Seeking Alpha contributor downgraded QCOM from Strong Buy to Hold, citing few near-term catalysts and macro risks. Article: Qualcomm: Right Tech, Wrong Market Timing - Moving To The Sidelines

Institutional Investors Weigh In On Qualcomm

Several large investors have recently modified their holdings of QCOM. Your Advocates Ltd. LLP purchased a new stake in Qualcomm during the first quarter valued at approximately $26,000. ABS Investment Management LLC bought a new position in shares of Qualcomm in the second quarter worth about $34,000. ABS Direct Equity Fund LLC purchased a new stake in Qualcomm during the 2nd quarter valued at approximately $34,000. Mizuho Securities Co. Ltd. purchased a new position in shares of Qualcomm during the third quarter valued at about $35,000. Finally, Team Financial Group LLC bought a new stake in Qualcomm in the 3rd quarter worth approximately $38,000. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Qualcomm Company 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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