Qualcomm (NASDAQ:QCOM) Stock Falls 2.9% - Time to Sell?

Key Points

• Qualcomm shares fell 2.9% to $172.83 amid concerns about weaker handset demand, declining sequential revenue and reported global layoffs, though automotive growth is helping diversify the business.
• Analyst sentiment remains mixed: TD Cowen upgraded the stock to “Buy” with a $200 target, while the broader analyst consensus is “Hold” with an average price target of $205.83.
• Qualcomm maintained its $0.92 quarterly dividend, yielding about 2.1%, and is scheduled to report fiscal fourth-quarter and full-year 2026 results on November 4, when investors will focus on handset trends, automotive growth, margins and guidance.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price traded down 2.9% during mid-day trading on Thursday. The stock traded as low as $171.93 and last traded at $172.83. 14,756,697 shares were traded during trading, a decline of 3% from the average daily volume of 15,163,333 shares. The stock had previously closed at $177.96.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Analyst sentiment improved. TD Cowen reportedly upgraded Qualcomm to “Buy” and raised its price target to $200 from $175, suggesting greater confidence in the valuation and potential upside. Qualcomm Stock Jumps on Analyst Upgrade
• Positive Sentiment: ETF investors provided buying support. Qualcomm reportedly attracted approximately $141.5 million in net ETF buying, which could help offset other near-term selling pressure. Qualcomm Sees Net ETF Buying
• Positive Sentiment: Qualcomm maintained its quarterly dividend at $0.92 per share, payable December 17 to shareholders of record December 3. The $3.68 annualized payout represents a yield of roughly 2.1% and reinforces the income appeal of the stock. Qualcomm Announces Quarterly Cash Dividend
• Neutral Sentiment: Qualcomm will report fiscal fourth-quarter and full-year 2026 results after the market closes on November 4. The announcement itself has limited impact, but investors are likely to focus on handset demand, automotive growth, margins and forward guidance. Qualcomm Schedules Fiscal 2026 Earnings Release
• Neutral Sentiment: Automotive growth is helping diversify Qualcomm beyond smartphones, but that benefit is being weighed against pressure on handset earnings and concerns about weaker smartphone shipments. Qualcomm Automotive Growth Meets Pressure on Handset Earnings
• Negative Sentiment: Revenue momentum appears weaker than Intel’s. Intel generated higher sales in each of the eight comparable quarters, while Qualcomm’s recent revenue has declined sequentially, reinforcing concerns about cyclical and handset-related weakness. Intel vs. Qualcomm: A Widening Gap in Revenue
• Negative Sentiment: An executive sold 2,500 shares worth about $437,650. The transaction occurred under a pre-arranged Rule 10b5-1 plan, reducing its signaling value, but it may still weigh modestly on investor sentiment. Qualcomm Insider Share Sale
• Negative Sentiment: Reported global layoffs underscore management’s efforts to improve performance and control costs. While restructuring could support margins over time, the cuts also signal operating pressure and may create execution risk in the near term. Qualcomm Reportedly to Cut Jobs Globally

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. The Goldman Sachs Group set a $160.00 price objective on shares of Qualcomm in a report on Thursday, July 30th. Freedom Capital upgraded shares of Qualcomm from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of Qualcomm in a research note on Monday, September 21st. Rosenblatt Securities reissued a "buy" rating and set a $235.00 target price on shares of Qualcomm in a research report on Wednesday, September 9th. Finally, Wells Fargo & Company reduced their target price on shares of Qualcomm from $265.00 to $170.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $205.83.

Qualcomm Price Performance

The stock has a market cap of $184.55 billion, a PE ratio of 20.00, a P/E/G 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. The firm's 50 day moving average price is $175.97 and its two-hundred day moving average price is $181.04.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.23 by ($0.02). The business had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The business's revenue for the quarter was down 4.0% on a year-over-year basis. During the same period last year, the firm earned $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, research analysts expect that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Thursday, December 3rd. Qualcomm's dividend payout ratio is presently 42.59%.

Insider Buying and Selling

In related news, EVP Heather S. Ace sold 3,200 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $147.04, for a total transaction of $470,528.00. Following the sale, the executive vice president owned 36,535 shares of the company's stock, valued at approximately $5,372,106.40. This represents a 8.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the 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 completion of the sale, the executive vice president owned 18,184 shares in the company, valued at $3,324,944.40. This represents a 12.09% decrease in their ownership of the stock. 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 three months. Insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of QCOM. BlackRock Inc. bought a new position in Qualcomm in the 2nd quarter worth about $17,583,115,000. State Street Corp raised its holdings in shares of Qualcomm by 1.3% in the 2nd quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company's stock valued at $9,750,123,000 after acquiring an additional 671,537 shares in the last quarter. Van ECK Associates Corp boosted its position in shares of Qualcomm by 22.7% during the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company's stock valued at $3,178,872,000 after acquiring an additional 3,179,720 shares during the last quarter. Amundi boosted its position in shares of Qualcomm by 94.1% during the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock valued at $1,884,071,000 after acquiring an additional 4,942,908 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Qualcomm during the 2nd quarter valued at about $1,523,930,000. 74.35% of the stock is owned by institutional investors.

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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