Qualcomm (NASDAQ:QCOM) Shares Down 3.5% on Insider Selling

Key Points

• Qualcomm shares fell 3.5% to $172.11 after EVP Ann Chaplin sold 1,827 shares worth approximately $319,000 under a pre-arranged Rule 10b5-1 plan.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $204.10; two analysts rate the stock Strong Buy, while three rate it Sell.
• Qualcomm has potential catalysts including favorable licensing developments with Arm, Apple and Transsion, but faces pressure from a broader chip selloff, possible Samsung share loss and rising AI-chip competition.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) traded down 3.5% during mid-day trading on Friday following insider selling activity. The stock traded as low as $171.90 and last traded at $172.11. Approximately 12,462,765 shares changed hands during trading, a decline of 18% from the average session volume of 15,269,619 shares. The stock had previously closed at $178.40.

Specifically, EVP Ann Chaplin sold 1,827 shares of Qualcomm stock in a transaction on Friday, October 16th. The shares were sold at an average price of $174.75, for a total transaction of $319,268.25. Following the completion of the sale, the executive vice president directly owned 25,770 shares in the company, valued at approximately $4,503,307.50. The trade was a 6.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a "buy" rating for the company in a research report on Monday, July 27th. Freedom Capital upgraded shares of Qualcomm from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. HSBC reissued a "hold" rating on shares of Qualcomm in a report on Wednesday, July 15th. Raymond James Financial initiated coverage on shares of Qualcomm in a research report on Thursday, June 25th. They set a "strong-buy" rating for the company. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Qualcomm in a report on Monday, September 21st. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $204.10.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm appears to have prevailed in its licensing dispute with Arm. A Delaware jury found that Arm breached its license agreement with Qualcomm, supporting Qualcomm’s position in a dispute that could have affected the company’s ability to use Arm-based designs. The verdict is a potential legal and strategic win, although further proceedings may still be required. Jury finds Arm breached license agreement with Qualcomm
• Positive Sentiment: A renewed Apple licensing agreement improves revenue visibility. Qualcomm’s continued licensing relationship with Apple helps support its high-margin patent-licensing business, even as Apple works to develop more of its own modem technology. Qualcomm renews Apple license
• Positive Sentiment: Qualcomm expanded its 5G licensing coverage with Transsion through 2031. The extended agreement provides longer-term royalty visibility in emerging smartphone markets. Qualcomm, Transsion Extend 5G Patent License Deal
• Positive Sentiment: The company launched an AI-native Wi-Fi 8 gateway. The product combines next-generation connectivity with edge AI computing, supporting Qualcomm’s strategy to diversify beyond smartphones into home broadband and AI-enabled devices. Qualcomm unveils AI-native Wi-Fi 8 gateway
• Neutral Sentiment: Analysts continue to view Qualcomm as a cash-generative wireless technology company with growth opportunities in automotive, AI and other markets, but investors remain focused on the pace of its transition away from handset dependence. Qualcomm: Navigating the shift from handsets to AI
• Negative Sentiment: Sector-wide chip selling is pressuring QCOM. Qualcomm’s legal win has not prevented broader weakness across semiconductor stocks, with investors reducing exposure to chipmakers. Chip selloff following Qualcomm verdict
• Negative Sentiment: Reports that Samsung could replace Qualcomm’s chip in the Galaxy S27 Ultra if thermal issues persist raise concerns about flagship handset share and Qualcomm’s near-term mobile revenue. Samsung may swap Galaxy S27 Ultra chip
• Negative Sentiment: MediaTek’s reported progress toward an AI data-center chip pact with ByteDance highlights increasing competition in Qualcomm’s effort to build an AI and data-center business. ByteDance and MediaTek AI chip pact

Qualcomm Trading Down 3.5%

The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The company's 50-day moving average is $174.94 and its 200 day moving average is $179.38. The company has a market cap of $183.79 billion, a price-to-earnings ratio of 19.92, a price-to-earnings-growth ratio of 3.88 and a beta of 1.65.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued 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). Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The firm had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. During the same quarter last year, the company posted $2.77 EPS. The company's revenue was down 4.0% on a year-over-year basis. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. Research analysts predict that Qualcomm Incorporated will post 7.74 EPS for the current year.

Hedge Funds Weigh In On Qualcomm

A number of large investors have recently bought and sold shares of QCOM. BlackRock Inc. acquired a new position in shares of Qualcomm during the 2nd quarter worth approximately $17,583,115,000. Bank of New York Mellon Corp acquired a new stake in Qualcomm in the 2nd quarter valued at $1,523,930,000. Deutsche Bank AG acquired a new stake in Qualcomm in the 2nd quarter valued at $1,178,349,000. Amundi increased its holdings in Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock worth $1,884,071,000 after acquiring an additional 4,942,908 shares in the last quarter. Finally, Van ECK Associates Corp increased its holdings in Qualcomm by 22.7% in the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company's stock worth $3,178,872,000 after acquiring an additional 3,179,720 shares in the last quarter. Institutional investors and hedge funds own 74.35% of the company's stock.

About Qualcomm

Qualcomm Incorporated NASDAQ: QCOM is a technology company headquartered in San Diego, California, that develops wireless communications technologies, semiconductors and related software. Its products support mobile devices, connected computing, automotive systems, industrial equipment and consumer electronics.

Qualcomm's semiconductor business operates primarily through its Qualcomm CDMA Technologies segment. Its offerings include Snapdragon platforms and systems-on-chip, cellular modems, radio-frequency components, connectivity products, and processors for smartphones, personal computers, extended-reality devices, vehicles and the Internet of Things.

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