Qualcomm (NASDAQ:QCOM) Stock Price Down 1.6% - Should You Sell?

Key Points

• Qualcomm shares fell 1.6% to $162.08, with trading volume below average. The stock’s consensus analyst rating is “Hold,” although the average price target of $205.48 implies significant upside.
• Analyst opinions are mixed: TD Cowen raised its target to $200 and maintained a “Buy” rating, while Zacks issued a “Strong Sell” rating and Bernstein lowered its target to $155.
• Qualcomm declared a quarterly dividend of $0.92 per share, equivalent to a 2.3% annualized yield. Insiders have sold $5.7 million worth of shares over the past 90 days, while institutional investors own 74.35% of the company.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares fell 1.6% during trading on Monday. The stock traded as low as $161.46 and last traded at $162.08. Approximately 10,917,731 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 15,048,443 shares. The stock had previously closed at $164.79.

Wall Street Analysts Forecast Growth

QCOM has been the topic of several recent research reports. The Goldman Sachs Group set a $160.00 price target on Qualcomm in a research report on Thursday, July 30th. Zacks Research downgraded Qualcomm from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 15th. Morgan Stanley dropped their price objective on Qualcomm from $231.00 to $220.00 and set an "equal weight" rating for the company in a research note on Thursday, July 30th. TD Cowen increased their price objective on Qualcomm from $175.00 to $200.00 and gave the company a "buy" rating in a research note on Monday, October 19th. Finally, Sanford C. Bernstein cut their target price on shares of Qualcomm from $165.00 to $155.00 and set a "market perform" rating on the stock in a report on Monday. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $205.48.

Qualcomm Trading Down 1.6%

The stock has a market capitalization of $173.08 billion, a P/E ratio of 18.76, a price-to-earnings-growth ratio of 3.71 and a beta of 1.70. The stock has a 50-day moving average price of $177.83 and a two-hundred day moving average price of $169.44. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be issued a $0.92 dividend. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 annualized dividend and a yield of 2.3%. Qualcomm's payout ratio is 42.59%.

Insider Activity at Qualcomm

In other news, CAO Patricia Y. Grech sold 625 shares of Qualcomm stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the sale, the chief accounting officer owned 208 shares of the company's stock, valued at approximately $33,872.80. The trade was a 75.03% decrease in their position. The sale was disclosed in a document filed 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 dated 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 transaction, the executive vice president directly owned 18,184 shares of the company's stock, valued at approximately $3,324,944.40. The trade was a 12.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 30,258 shares of company stock valued at $5,727,616 in the last 90 days. 0.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in QCOM. JFS Wealth Advisors LLC lifted its position in Qualcomm by 3.4% during the second quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company's stock valued at $295,000 after buying an additional 53 shares during the period. Canopy Partners LLC lifted its position in Qualcomm by 1.4% during the 3rd quarter. Canopy Partners LLC now owns 4,148 shares of the wireless technology company's stock valued at $763,000 after acquiring an additional 56 shares during the period. Wall Street Financial Group Inc. lifted its position in Qualcomm by 1.9% during the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company's stock valued at $564,000 after acquiring an additional 57 shares during the period. Sunbeam Capital Management LLC boosted its stake in Qualcomm by 3.7% during the second quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company's stock worth $303,000 after acquiring an additional 58 shares in the last quarter. Finally, LaFleur & Godfrey LLC grew its holdings in Qualcomm by 3.6% in the third quarter. LaFleur & Godfrey LLC now owns 1,656 shares of the wireless technology company's stock worth $305,000 after purchasing an additional 58 shares during the period. Hedge funds and other institutional investors own 74.35% of the company's stock.

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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