Qualcomm (NASDAQ:QCOM) Shares Up 1.4% - Should You Buy?

Key Points

• Qualcomm shares rose 1.4% to $164.43 in mid-day trading, though trading volume was 24% below its average.
• Investors face an earnings catalyst on Wednesday, with results and guidance likely to shape expectations. AI and potential data-center expansion offer growth possibilities, while smartphone weakness, rising costs, and margin pressure pose near-term risks.
• Analysts have a consensus Hold rating and an average price target of $205.48. Qualcomm also declared a quarterly dividend of $0.92 per share, equivalent to a 2.2% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price shot up 1.4% during mid-day trading on Tuesday. The company traded as high as $165.28 and last traded at $164.43. 11,343,455 shares traded hands during trading, a decline of 24% from the average daily volume of 15,010,481 shares. The stock had previously closed at $162.08.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm Ventures joined a $700 million funding round for AI startup Hark, connecting the chipmaker with efforts to develop AI models, software and hardware for future consumer assistant devices. Qualcomm Joins Hark Funding Round
• Positive Sentiment: Qualcomm may be pursuing data-center opportunities with major hyperscalers, which could provide a future growth engine and help counter weakness in handsets; timing and scale remain uncertain. Qualcomm and AI Opportunities
• Neutral Sentiment: Wednesday’s earnings report is an immediate catalyst that could reset expectations. Investors will focus on the company’s outlook as well as its quarterly results. Qualcomm Gears Up for Earnings
• Negative Sentiment: Qualcomm shares have fallen sharply amid selling across semiconductor stocks, with one report noting they were more than 37% below their year-to-date high and had lost a key technical support level. Qualcomm Loses Support Ahead of Earnings
• Negative Sentiment: Analysts cite smartphone-market weakness, rising costs and margin pressure as near-term risks that could overshadow Qualcomm’s AI and data-center ambitions. Qualcomm’s Q4 Earnings Challenges

Wall Street Analyst Weigh In

Several equities research analysts have commented on the company. Arete Research upgraded Qualcomm to a "strong-buy" rating in a research note on Friday, October 16th. Cantor Fitzgerald decreased their price target on shares of Qualcomm from $200.00 to $165.00 and set a "neutral" rating for the company in a research note on Monday, July 27th. The Goldman Sachs Group set a $160.00 price objective on shares of Qualcomm in a report on Thursday, July 30th. Zacks Research lowered shares of Qualcomm from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 15th. Finally, Susquehanna boosted their price objective on shares of Qualcomm from $160.00 to $185.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 21st. Three 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 given a Sell rating to the stock. According to MarketBeat.com, Qualcomm presently has a consensus rating of "Hold" and an average target price of $205.48.

Qualcomm Trading Up 1.4%

The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02. The firm has a fifty day moving average price of $177.86 and a 200 day moving average price of $169.42. The company has a market cap of $175.58 billion, a price-to-earnings ratio of 19.03, a P/E/G ratio of 4.12 and a beta of 1.65.

Qualcomm Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders 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 yield of 2.2%. Qualcomm's dividend payout ratio (DPR) is currently 42.59%.

Insider Activity

In other news, EVP Ann Chaplin sold 1,827 shares of the company's stock in a transaction dated Friday, October 16th. The shares were sold at an average price of $174.75, for a total value of $319,268.25. Following the sale, the executive vice president directly owned 25,770 shares of the company's stock, valued at approximately $4,503,307.50. This represents a 6.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano Amon sold 10,000 shares of Qualcomm stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $200.00, for a total value of $2,000,000.00. Following the transaction, the chief executive officer owned 177,568 shares of the company's stock, valued at $35,513,600. The trade was a 5.33% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,258 shares of company stock valued at $5,727,616 over the last quarter. 0.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Qualcomm

Institutional investors and hedge funds have recently modified their holdings of the stock. ABS Investment Management LLC purchased a new stake in Qualcomm during the second quarter valued at approximately $34,000. ABS Direct Equity Fund LLC acquired a new stake in Qualcomm in the second quarter valued at approximately $34,000. Your Advocates Ltd. LLP purchased a new position in Qualcomm in the first quarter worth $26,000. Team Financial Group LLC purchased a new position in Qualcomm in the third quarter worth $38,000. Finally, Burk Holdings LLC increased its position in shares of Qualcomm by 191.7% during the second quarter. Burk Holdings LLC now owns 210 shares of the wireless technology company's stock worth $39,000 after purchasing an additional 138 shares in the last quarter. 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 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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