QUALCOMM (NASDAQ:QCOM) Trading Down 1% - Should You Sell?

Key Points

• QUALCOMM's stock declined 1% recently, trading at $145.19 after hitting a low of $144.11 during the day, with trading volume significantly below average at 2.43 million shares.
• Bank of America and JPMorgan Chase have adjusted their price targets for QUALCOMM to $200.00, while UBS set a target of $165.00, indicating mixed outlooks from analysts.
• QUALCOMM announced a quarterly dividend of $0.89 per share, with a payout ratio of 34.33%, scheduled for payment on September 25th.

QUALCOMM Incorporated (NASDAQ:QCOM - Get Free Report)'s share price dropped 1% during mid-day trading on Wednesday . The stock traded as low as $144.11 and last traded at $145.19. Approximately 2,433,011 shares were traded during trading, a decline of 71% from the average daily volume of 8,489,800 shares. The stock had previously closed at $146.71.

Wall Street Analyst Weigh In

A number of research firms have weighed in on QCOM. Wells Fargo & Company cut their price target on QUALCOMM from $175.00 to $140.00 and set an "underweight" rating on the stock in a research note on Thursday, May 1st. Piper Sandler decreased their target price on QUALCOMM from $190.00 to $175.00 and set an "overweight" rating for the company in a research note on Thursday, July 31st. Seaport Res Ptn upgraded shares of QUALCOMM to a "hold" rating in a research note on Friday, May 9th. Loop Capital reduced their price objective on shares of QUALCOMM from $180.00 to $155.00 and set a "hold" rating for the company in a research report on Thursday, May 1st. Finally, Citigroup reiterated a "hold" rating on shares of QUALCOMM in a research note on Thursday, July 17th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, QUALCOMM currently has an average rating of "Hold" and an average target price of $181.10.

QUALCOMM Stock Down 0.1%

The firm has a market cap of $157.18 billion, a PE ratio of 14.06, a P/E/G ratio of 2.14 and a beta of 1.23. The company has a quick ratio of 2.38, a current ratio of 3.19 and a debt-to-equity ratio of 0.54. The firm's 50 day moving average is $155.08 and its 200-day moving average is $154.58.

QUALCOMM (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The wireless technology company reported $2.77 EPS for the quarter, beating analysts' consensus estimates of $2.71 by $0.06. The business had revenue of $10.37 billion during the quarter, compared to the consensus estimate of $10.33 billion. QUALCOMM had a return on equity of 40.35% and a net margin of 26.77%. The business's revenue for the quarter was up 10.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.33 earnings per share. As a group, equities research analysts expect that QUALCOMM Incorporated will post 9.39 earnings per share for the current fiscal year.

QUALCOMM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Thursday, September 4th will be issued a dividend of $0.89 per share. The ex-dividend date is Thursday, September 4th. This represents a $3.56 annualized dividend and a dividend yield of 2.4%. QUALCOMM's payout ratio is presently 34.33%.

Insider Buying and Selling

In other news, CFO Akash J. Palkhiwala sold 3,333 shares of the stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $161.28, for a total transaction of $537,546.24. Following the transaction, the chief financial officer owned 46,446 shares of the company's stock, valued at approximately $7,490,810.88. This trade represents a 6.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Heather S. Ace sold 1,600 shares of QUALCOMM stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $146.40, for a total value of $234,240.00. Following the completion of the transaction, the insider owned 21,193 shares of the company's stock, valued at approximately $3,102,655.20. The trade was a 7.02% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 424,099 shares of company stock valued at $8,352,355. Corporate insiders own 0.08% of the company's stock.

Institutional Investors Weigh In On QUALCOMM

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in QUALCOMM by 0.6% during the first quarter. Vanguard Group Inc. now owns 114,368,470 shares of the wireless technology company's stock valued at $17,568,141,000 after buying an additional 638,284 shares in the last quarter. Kingstone Capital Partners Texas LLC boosted its holdings in QUALCOMM by 656,661.0% in the second quarter. Kingstone Capital Partners Texas LLC now owns 58,773,542 shares of the wireless technology company's stock worth $9,360,274,000 after purchasing an additional 58,764,593 shares in the last quarter. Northern Trust Corp lifted its holdings in QUALCOMM by 12.7% in the 4th quarter. Northern Trust Corp now owns 13,289,513 shares of the wireless technology company's stock worth $2,041,535,000 after purchasing an additional 1,493,076 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in QUALCOMM by 6.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 10,422,341 shares of the wireless technology company's stock valued at $1,600,976,000 after acquiring an additional 641,654 shares during the period. Finally, Invesco Ltd. grew its stake in shares of QUALCOMM by 2.2% in the first quarter. Invesco Ltd. now owns 9,846,093 shares of the wireless technology company's stock worth $1,512,458,000 after acquiring an additional 215,900 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors.

QUALCOMM Company Profile

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products.