Qualcomm Incorporated (NASDAQ:QCOM) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Qualcomm, with 20 hold, 14 buy, 2 strong-buy and 2 sell ratings among 38 firms. The average 12-month price target is $203.63, though several brokerages recently lowered their targets.
• Qualcomm’s latest quarter exceeded revenue expectations with $9.95 billion in sales but narrowly missed earnings estimates, reporting $2.21 in EPS versus $2.23 expected. Revenue declined 4% year over year, and shares opened at $160.75, well below their 52-week high of $259.92.
• The company declared a quarterly dividend of $0.92 per share, equivalent to a $3.68 annual payout and a 2.3% yield. Institutional investors own 74.35% of Qualcomm, while insiders have sold 11,325 shares worth approximately $1.93 million over the past 90 days.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) has earned a consensus rating of "Hold" from the thirty-eight research firms that are currently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, twenty have assigned a hold recommendation, fourteen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $203.6333.

QCOM has been the subject of several recent research reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Qualcomm in a research note on Wednesday, June 24th. Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a "buy" rating on the stock in a research report on Monday, July 27th. Citigroup decreased their price target on shares of Qualcomm from $198.00 to $175.00 and set a "neutral" rating for the company in a report on Wednesday, July 29th. Wells Fargo & Company lowered their price objective 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. Finally, UBS Group dropped their price objective on shares of Qualcomm from $190.00 to $170.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th.

Qualcomm Stock Performance

NASDAQ:QCOM opened at $160.75 on Monday. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The business's 50 day moving average is $178.26 and its two-hundred day moving average is $168.12. Qualcomm has a 52 week low of $121.99 and a 52 week high of $259.92. The company has a market cap of $168.82 billion, a PE ratio of 18.61, a P/E/G ratio of 14.84 and a beta of 1.65.

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

Qualcomm Dividend Announcement

The business also recently announced 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 of this dividend is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.3%. Qualcomm's dividend payout ratio is 42.59%.

Insider Transactions at Qualcomm

In related news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $163.26, for a total value of $408,150.00. Following the sale, the executive vice president owned 20,684 shares of the company's stock, valued at approximately $3,376,869.84. This trade represents a 10.78% 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 Heather S. Ace sold 3,200 shares of the business'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 value of $470,528.00. Following the transaction, the executive vice president owned 36,535 shares of the company's stock, valued at $5,372,106.40. This represents a 8.05% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 11,325 shares of company stock worth $1,925,859. 0.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Qualcomm

Several hedge funds and other institutional investors have recently modified their holdings of QCOM. BlackRock Inc. acquired a new position in Qualcomm during the 2nd quarter worth $17,583,115,000. Norges Bank acquired a new position in shares of Qualcomm during the fourth quarter valued at $2,591,056,000. Bank of New York Mellon Corp acquired a new position in shares of Qualcomm during the second quarter valued at $1,523,930,000. Deutsche Bank AG bought a new stake in shares of Qualcomm during the second quarter valued at about $1,178,349,000. Finally, Wellington Management Group LLP raised its stake in shares of Qualcomm by 34.5% during the fourth quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company's stock valued at $2,861,301,000 after purchasing an additional 4,290,622 shares in the last quarter. Institutional investors and hedge funds own 74.35% of the company's stock.

About Qualcomm

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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