Qualcomm (NASDAQ:QCOM) Shares Climb 1.3% - Should You Buy?

Key Points

• Qualcomm shares rose 1.3% to $185.41, trading above both their 50-day ($177.28) and 200-day ($169.42) moving averages, though volume was 46% below average.
• Analyst sentiment remains mixed: Qualcomm has an average rating of “Hold” and a consensus price target of $205.83, with most analysts rating the stock Buy or Hold.
• The company reported $2.21 in quarterly EPS, narrowly missing estimates, while revenue of $9.95 billion exceeded expectations but declined 4% year over year. Qualcomm also declared a quarterly dividend of $0.92 per share, representing a 2.0% yield.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) traded up 1.3% during mid-day trading on Thursday. The company traded as high as $185.59 and last traded at $185.41. 8,098,133 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 15,023,960 shares. The stock had previously closed at $182.97.

Analyst Ratings Changes

Several analysts have weighed in on the company. Sanford C. Bernstein reiterated a "market perform" rating on shares of Qualcomm in a research note on Wednesday, September 9th. Susquehanna raised their price objective on Qualcomm from $160.00 to $185.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 21st. The Goldman Sachs Group set a $160.00 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 report on Monday, July 27th. Finally, Piper Sandler started coverage on Qualcomm in a research report on Wednesday, September 9th. They issued a "neutral" rating and a $190.00 target price on the stock. Three analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Qualcomm presently has an average rating of "Hold" and a consensus target price of $205.83.

Qualcomm Stock Performance

The firm's fifty day simple moving average is $177.28 and its 200 day simple moving average is $169.42. The company has a market capitalization of $197.99 billion, a PE ratio of 21.46, a price-to-earnings-growth ratio of 3.96 and a beta of 1.65. 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 (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 analysts' consensus estimates of $2.23 by ($0.02). The company had revenue of $9.95 billion for the quarter, compared to analysts' expectations of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The business's quarterly revenue was down 4.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.77 EPS. On average, research analysts predict that Qualcomm Incorporated will post 7.71 EPS for the current year.

Qualcomm Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be issued a dividend of $0.92 per share. 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 (DPR) is 42.59%.

Insider Activity at Qualcomm

In other Qualcomm news, CAO Patricia Y. Grech sold 625 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $162.85, for a total value of $101,781.25. Following the sale, the chief accounting officer owned 208 shares in the company, valued at approximately $33,872.80. This represents a 75.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $182.85, for a total transaction of $457,125.00. Following the sale, the executive vice president directly owned 18,184 shares in the company, valued at $3,324,944.40. The trade was 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 sold 33,458 shares of company stock valued at $6,198,144 in the last 90 days. 0.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Qualcomm

Several large investors have recently made changes to their positions in the company. Trek Financial LLC boosted its position in Qualcomm by 44.2% in the 3rd quarter. Trek Financial LLC now owns 2,707 shares of the wireless technology company's stock valued at $498,000 after buying an additional 830 shares during the last quarter. Bank Julius Baer & Co. Ltd Zurich boosted its holdings in Qualcomm by 17.0% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 895,323 shares of the wireless technology company's stock valued at $164,794,000 after purchasing an additional 130,386 shares during the last quarter. Virtue Capital Management LLC grew its stake in Qualcomm by 3.4% during the 3rd quarter. Virtue Capital Management LLC now owns 2,826 shares of the wireless technology company's stock valued at $520,000 after purchasing an additional 92 shares in the last quarter. Columbia Bank increased its holdings in Qualcomm by 3.5% during the 3rd quarter. Columbia Bank now owns 2,171 shares of the wireless technology company's stock worth $400,000 after purchasing an additional 74 shares during the last quarter. Finally, Hoey Investments Inc. increased its holdings in Qualcomm by 8.0% during the 3rd quarter. Hoey Investments Inc. now owns 1,347 shares of the wireless technology company's stock worth $248,000 after purchasing an additional 100 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

About Qualcomm

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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