Qualcomm (NASDAQ:QCOM) Downgraded by Freedom Capital to Hold

Key Points

• Freedom Capital downgraded Qualcomm from strong-buy to hold, adding to a mixed analyst picture that includes both recent upgrades and several cautious calls.
• Despite the downgrade, Qualcomm’s latest earnings beat estimates slightly, with EPS of $2.65 and revenue of $10.60 billion, while the company also issued Q3 guidance of $2.10 to $2.30 EPS.
• Qualcomm’s board authorized a $20 billion stock buyback, but recent insider selling by the CEO and an EVP may temper sentiment even as the stock continues to attract institutional interest.

Qualcomm (NASDAQ:QCOM - Get Free Report) was downgraded by Freedom Capital from a "strong-buy" rating to a "hold" rating in a research note issued on Wednesday,Zacks.com reports.

QCOM has been the subject of several other research reports. Cantor Fitzgerald raised their target price on Qualcomm from $135.00 to $150.00 and gave the stock a "neutral" rating in a research report on Thursday, April 30th. The Goldman Sachs Group started coverage on shares of Qualcomm in a research report on Monday, March 30th. They issued a "neutral" rating and a $135.00 price target for the company. DZ Bank lowered shares of Qualcomm from a "buy" rating to a "hold" rating and set a $195.00 price target for the company. in a research report on Friday, May 8th. Bank of America started coverage on shares of Qualcomm in a research report on Tuesday, March 10th. They issued an "underperform" rating and a $145.00 price target for the company. Finally, Wells Fargo & Company lowered shares of Qualcomm from a "positive" rating to an "underweight" rating in a research report on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, Qualcomm has an average rating of "Hold" and a consensus price target of $180.37.

Qualcomm Stock Performance

QCOM opened at $200.08 on Wednesday. The firm has a market cap of $210.88 billion, a PE ratio of 21.75, a P/E/G ratio of 26.40 and a beta of 1.49. The company has a quick ratio of 1.61, a current ratio of 2.37 and a debt-to-equity ratio of 0.54. The business has a fifty day simple moving average of $146.12 and a 200-day simple moving average of $157.55. Qualcomm has a fifty-two week low of $121.99 and a fifty-two week high of $247.90.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping the consensus estimate of $2.56 by $0.09. The business had revenue of $10.60 billion during the quarter, compared to analysts' expectations of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.Qualcomm's revenue was down 3.5% compared to the same quarter last year. During the same quarter last year, the firm posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, equities analysts predict that Qualcomm will post 7.99 EPS for the current fiscal year.

Qualcomm declared that its board has authorized a stock buyback plan on Tuesday, March 17th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the wireless technology company to repurchase up to 14.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $211.90, for a total value of $529,750.00. Following the transaction, the executive vice president directly owned 28,184 shares in the company, valued at approximately $5,972,189.60. The trade was a 8.15% decrease in their ownership of the stock. The transaction 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, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the completion of the transaction, the chief executive officer owned 197,568 shares in the company, valued at $35,562,240. The trade was a 4.82% 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 have sold 18,477 shares of company stock valued at $3,268,316 in the last three months. 0.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Qualcomm

A number of institutional investors have recently made changes to their positions in QCOM. Your Advocates Ltd. LLP bought a new position in shares of Qualcomm in the first quarter worth about $26,000. Cloud Capital Management LLC bought a new position in shares of Qualcomm in the third quarter worth about $27,000. Richardson Financial Services Inc. increased its stake in shares of Qualcomm by 90.9% in the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock worth $29,000 after purchasing an additional 80 shares during the period. Torren Management LLC bought a new position in shares of Qualcomm in the fourth quarter worth about $29,000. Finally, Caitong International Asset Management Co. Ltd increased its stake in shares of Qualcomm by 17,000.0% in the fourth 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. 74.35% of the stock is currently owned by institutional investors.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm posted better-than-expected fiscal Q2 results, with earnings and revenue both slightly ahead of estimates, which is helping support the stock.
• Positive Sentiment: New developments around Qualcomm’s data center processors and custom silicon deals are boosting hopes that the company can expand beyond smartphones into AI-driven growth markets. Why Is Qualcomm (QCOM) Stock Soaring Today
• Positive Sentiment: Several analysts raised price targets or upgraded the stock, reflecting improving confidence in Qualcomm’s outlook after the recent rally. Qualcomm (QCOM) price target increased by 12.91% to 180.60
• Positive Sentiment: Analyst coverage is increasingly focused on Qualcomm’s AI positioning, Snapdragon launches, and potential smartphone growth, which is reinforcing the bullish narrative. QUALCOMM Incorporated (QCOM) Eyes Smartphone Growth with New Snapdragon Platforms
• Neutral Sentiment: An executive vice president sold shares under a pre-arranged trading plan, which may slightly weigh on sentiment but is not necessarily a negative signal. Qualcomm NASDAQ: QCOM EVP Sells $529,750.00 in Stock
• Neutral Sentiment: Broader semiconductor volatility is also in play, with some reports saying investors are rotating out of the AI chip trade after a strong run. Intel, Qualcomm fall: investors booking gains or cautious about growing competition?
• Negative Sentiment: Some analysts are still cautious, arguing that competitive pressure remains intense and that near-term upside may already be partly priced in. Wall Street analysts update Qualcomm’s stock price target for the next 12 months

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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