Qualcomm (NASDAQ:QCOM) Stock Price Up 5.5% - Here's Why

Key Points

• Qualcomm shares rose 5.5% to $165.41, with trading volume 28% above average.
• Fiscal Q4 adjusted EPS of $2.17 and revenue of $10.44 billion narrowly beat analyst estimates. Alphabet also disclosed a $548 million stake, while automotive growth and data-center ambitions could diversify Qualcomm beyond smartphones.
• Despite the earnings beat, revenue and EPS declined year over year, and concerns include soft guidance, weaker handset demand, Apple’s move to in-house modems, and margin pressure. Analysts’ consensus rating remains Hold.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price traded up 5.5% during trading on Friday. The company traded as high as $167.47 and last traded at $165.41. 19,462,588 shares traded hands during mid-day trading, an increase of 28% from the average session volume of 15,176,346 shares. The stock had previously closed at $156.75.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s fiscal Q4 adjusted EPS of $2.17 and revenue of $10.44 billion edged past consensus estimates. Automotive growth and the company’s data-center ambitions offer potential to diversify beyond mobile chips. Article: Is Qualcomm Stock Worth Buying After Mixed Q4 Results?
• Positive Sentiment: Alphabet disclosed a $548 million Qualcomm stake, a potentially supportive signal of institutional interest. Article: Alphabet discloses $548 million worth of Qualcomm stake
• Positive Sentiment: The shares’ recovery also comes as markets claw back some of Thursday’s broad technology selloff, which was driven partly by concerns that post-election data-center regulation could slow AI investment. Article: OpenAI, Arm and Qualcomm executives react to post-midterm AI sell-off
• Neutral Sentiment: Qualcomm’s SpaceX agreement to supply technology for a planned terrestrial 5G network adds a potential new customer and use case, though its financial contribution is not yet clear. Article: SpaceX Makes Its Biggest Move Yet Against Telecom Giants With Qualcomm 5G Deal
• Negative Sentiment: Despite the earnings beat, revenue and EPS were down year over year, and investors remain concerned about soft guidance, falling handset demand, Apple’s shift toward in-house modems and rising component costs pressuring margins. Article: Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
• Negative Sentiment: Analyst caution may limit the recovery: Susquehanna cut its target to $165 and maintained a neutral rating, while a Seeking Alpha contributor downgraded QCOM from Strong Buy to Hold, citing few near-term catalysts and macro risks. Article: Qualcomm: Right Tech, Wrong Market Timing - Moving To The Sidelines

Analyst Upgrades and Downgrades

Several research firms have weighed in on QCOM. HSBC reaffirmed a "hold" rating on shares of Qualcomm in a research note on Wednesday, July 15th. Morgan Stanley decreased their target price on Qualcomm from $231.00 to $220.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Piper Sandler reaffirmed a "neutral" rating on shares of Qualcomm in a research note on Thursday. Royal Bank Of Canada upped their price target on Qualcomm from $160.00 to $180.00 and gave the stock a "sector perform" rating in a research note on Wednesday, September 9th. Finally, Evercore set a $159.00 price target on Qualcomm in a report on Thursday, July 30th. 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 company. According to data from MarketBeat.com, Qualcomm has a consensus rating of "Hold" and a consensus price target of $197.55.

Qualcomm Price Performance

The stock has a market capitalization of $176.63 billion, a P/E ratio of 13.02, a price-to-earnings-growth ratio of 3.90 and a beta of 1.70. The business has a fifty day simple moving average of $178.09 and a 200 day simple moving average of $169.47. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.01. Qualcomm had a return on equity of 31.91% and a net margin of 31.60%. The company had revenue of $10.44 billion for the quarter, compared to analysts' expectations of $10.12 billion. Qualcomm's quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.00 earnings per share. On average, analysts expect that Qualcomm Incorporated will post 7.17 earnings per share for the current year.

Qualcomm Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, December 3rd. Qualcomm's dividend payout ratio (DPR) is presently 28.98%.

Insider Activity

In related news, CEO Cristiano Amon sold 10,000 shares of the business's stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the transaction, the chief executive officer directly owned 177,568 shares in the company, valued at approximately $35,513,600. The trade was a 5.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann Chaplin sold 1,827 shares of the stock in a transaction dated 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 owned 25,770 shares of the company's stock, valued at approximately $4,503,307.50. This trade represents a 6.62% 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 a total of 31,759 shares of company stock valued at $5,970,088 in the last three months. 0.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

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

Qualcomm Company Profile

Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications.

Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.

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