Investors Buy High Volume of Call Options on Qualcomm (NASDAQ:QCOM)

Key Points

• 120,444 call options were bought on Qualcomm on Friday — about a 165% increase versus typical daily call volume, signaling unusually strong bullish options interest.
• QCOM shares jumped $15.33 to $149.28 on above-average volume (14.9M vs. 11.0M avg) after the company reported quarterly EPS of $3.50 that beat estimates and set Q2 guidance of $2.45–$2.65.
• Qualcomm raised its quarterly dividend to $0.92 (annualized $3.68, ~2.5% yield) and the board authorized a $20 billion share buyback, equal to roughly 14.5% of outstanding stock.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock traders purchased 120,444 call options on the company. This represents an increase of approximately 165% compared to the typical daily volume of 45,525 call options.

Qualcomm Price Performance

QCOM traded up $15.33 during trading on Friday, hitting $149.28. 14,895,267 shares of the company traded hands, compared to its average volume of 11,047,175. The company has a market cap of $159.28 billion, a PE ratio of 30.79 and a beta of 1.28. The stock's 50-day simple moving average is $134.17 and its two-hundred day simple moving average is $155.58. Qualcomm has a 1 year low of $121.99 and a 1 year high of $205.95. The company has a current ratio of 2.51, a quick ratio of 1.83 and a debt-to-equity ratio of 0.64.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The wireless technology company reported $3.50 EPS for the quarter, topping analysts' consensus estimates of $3.38 by $0.12. Qualcomm had a net margin of 11.96% and a return on equity of 44.09%. The business had revenue of $12.25 billion during the quarter, compared to analysts' expectations of $12.16 billion. During the same period last year, the company posted $3.41 EPS. The business's revenue was up 4.7% on a year-over-year basis. Qualcomm has set its Q2 2026 guidance at 2.450-2.650 EPS. As a group, sell-side analysts anticipate that Qualcomm will post 8.25 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be paid a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is 73.55%.

Qualcomm announced that its board has initiated a stock buyback program on Tuesday, March 17th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the wireless technology company to buy up to 14.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's management believes its shares are undervalued.

Insider Activity

In related news, EVP Heather S. Ace sold 3,200 shares of the business's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $137.00, for a total transaction of $438,400.00. Following the transaction, the executive vice president owned 16,393 shares in the company, valued at $2,245,841. The trade was a 16.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Akash J. Palkhiwala sold 3,333 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $137.65, for a total transaction of $458,787.45. Following the sale, the executive vice president directly owned 35,599 shares in the company, valued at $4,900,202.35. The trade was a 8.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 9,118 shares of company stock worth $1,233,705 in the last quarter. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. waypoint wealth counsel increased its position in Qualcomm by 2.2% during the 3rd quarter. waypoint wealth counsel now owns 2,863 shares of the wireless technology company's stock valued at $476,000 after purchasing an additional 61 shares during the period. Greykasell Wealth Strategies Inc. increased its position in Qualcomm by 1.5% during the 3rd quarter. Greykasell Wealth Strategies Inc. now owns 4,126 shares of the wireless technology company's stock valued at $686,000 after purchasing an additional 61 shares during the period. Baron Wealth Management LLC increased its position in Qualcomm by 4.5% during the 3rd quarter. Baron Wealth Management LLC now owns 1,431 shares of the wireless technology company's stock valued at $238,000 after purchasing an additional 62 shares during the period. Certified Advisory Corp increased its position in Qualcomm by 0.6% during the 3rd quarter. Certified Advisory Corp now owns 10,085 shares of the wireless technology company's stock valued at $1,678,000 after purchasing an additional 62 shares during the period. Finally, Elser Financial Planning Inc increased its position in Qualcomm by 3.7% during the 3rd quarter. Elser Financial Planning Inc now owns 1,759 shares of the wireless technology company's stock valued at $297,000 after purchasing an additional 63 shares during the period. Institutional investors own 74.35% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently commented on QCOM. Sanford C. Bernstein reiterated a "market perform" rating and set a $140.00 price target (down from $175.00) on shares of Qualcomm in a report on Thursday, March 26th. Zacks Research downgraded shares of Qualcomm from a "hold" rating to a "strong sell" rating in a research report on Tuesday, January 27th. Barclays started coverage on shares of Qualcomm in a research report on Wednesday. They set an "underweight" rating and a $130.00 price objective on the stock. UBS Group lowered their price objective on shares of Qualcomm from $160.00 to $150.00 and set a "neutral" rating on the stock in a research report on Tuesday. Finally, Daiwa Securities Group downgraded shares of Qualcomm from an "outperform" rating to a "neutral" rating and set a $140.00 price objective on the stock. in a research report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $158.25.

Qualcomm Company Profile

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.

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