Qualcomm (NASDAQ:QCOM) Trading Up 3.8% - Here's What Happened

Key Points

• Qualcomm shares rose 3.8% to $170.48, with trading volume below the stock’s average session volume.
• Analyst sentiment remains mixed: MarketBeat reports an average rating of “Hold” and a consensus price target of $203.76, despite several recent rating and target changes.
• Qualcomm recently reported quarterly revenue of $9.95 billion, exceeding expectations, while EPS of $2.21 slightly missed estimates; the company also declared a quarterly dividend of $0.92 per share, representing a 2.2% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price traded up 3.8% on Monday . The company traded as high as $171.38 and last traded at $170.48. 11,286,676 shares were traded during trading, a decline of 28% from the average session volume of 15,728,395 shares. The stock had previously closed at $164.19.

Analysts Set New Price Targets

QCOM has been the topic of a number of recent analyst reports. Bank of America lifted their price objective on Qualcomm from $165.00 to $195.00 and gave the stock an "underperform" rating in a research report on Tuesday, June 23rd. Lake Street Capital downgraded Qualcomm to a "hold" rating in a report on Thursday, June 25th. Raymond James Financial assumed coverage on Qualcomm in a research note on Thursday, June 25th. They issued a "strong-buy" rating for the company. Benchmark cut their price target on shares of Qualcomm from $300.00 to $270.00 and set a "buy" rating on the stock in a report on Monday, July 27th. Finally, Daiwa Securities Group raised shares of Qualcomm from a "neutral" rating to an "outperform" rating and set a $225.00 price objective on the stock in a research report on Friday, May 8th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twenty have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Qualcomm has an average rating of "Hold" and a consensus target price of $203.76.

Qualcomm Stock Performance

The company has a market capitalization of $179.04 billion, a PE ratio of 19.73, a PEG ratio of 15.16 and a beta of 1.65. 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 business's 50-day moving average is $172.49 and its 200-day moving average is $168.85.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its 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 for the quarter, compared to analysts' expectations of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. Qualcomm's revenue for the quarter was down 4.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.77 earnings per share. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, research analysts anticipate that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.2%. Qualcomm's dividend payout ratio (DPR) is presently 42.59%.

Insider Buying and Selling

In related news, CAO Patricia Y. Grech sold 625 shares of the company's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $162.85, for a total value of $101,781.25. Following the transaction, the chief accounting officer owned 208 shares in the company, valued at $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 available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the firm's stock in a transaction dated 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 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 have sold a total of 11,325 shares of company stock worth $1,925,859 in the last quarter. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Your Advocates Ltd. LLP bought a new position in Qualcomm during the first quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd grew its position in Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after purchasing an additional 170 shares during the period. Birchwood Financial Partners Inc. bought a new stake in Qualcomm in the 4th quarter worth approximately $31,000. Commonwealth Retirement Investments LLC purchased a new stake in Qualcomm during the 4th quarter valued at $32,000. Finally, ABS Investment Management LLC bought a new position in shares of Qualcomm during the 2nd quarter valued at $34,000. 74.35% of the stock is owned by institutional investors.

Qualcomm Company Profile

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.

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