QUALCOMM (NASDAQ:QCOM) Shares Down 1% - Here's Why

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) shares 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 changed hands during trading, a decline of 71% from the average daily volume of 8,489,800 shares. The stock had previously closed at $146.71.

Analyst Ratings Changes

QCOM has been the subject of several recent analyst reports. Wall Street Zen downgraded QUALCOMM from a "buy" rating to a "hold" rating in a research note on Sunday, August 3rd. Benchmark decreased their price target on QUALCOMM from $240.00 to $200.00 and set a "buy" rating for the company in a research note on Thursday, May 1st. JPMorgan Chase & Co. upped their price target on QUALCOMM from $190.00 to $200.00 and gave the stock an "overweight" rating in a research note on Monday, July 28th. UBS Group increased their target price on QUALCOMM from $145.00 to $165.00 and gave the company a "neutral" rating in a research note on Monday, July 21st. Finally, Loop Capital decreased their target price on QUALCOMM from $180.00 to $155.00 and set a "hold" rating for the company in a research note on Thursday, May 1st. One analyst has rated the stock with a sell rating, twelve have assigned a hold rating and eleven have given a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $181.10.

QUALCOMM Stock Performance

The company has a current ratio of 3.19, a quick ratio of 2.38 and a debt-to-equity ratio of 0.54. The stock has a fifty day moving average price of $155.07 and a 200-day moving average price of $154.20. The firm has a market capitalization of $159.22 billion, a price-to-earnings ratio of 14.23, a PEG ratio of 2.16 and a beta of 1.23.

QUALCOMM (NASDAQ:QCOM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The wireless technology company reported $2.77 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.71 by $0.06. QUALCOMM had a return on equity of 40.35% and a net margin of 26.77%. The business had revenue of $10.37 billion during the quarter, compared to analysts' expectations of $10.33 billion. During the same period in the prior year, the firm posted $2.33 EPS. QUALCOMM's quarterly revenue was up 10.4% compared to the same quarter last year. As a group, analysts anticipate that QUALCOMM Incorporated will post 9.39 earnings per share for the current fiscal year.

QUALCOMM Dividend Announcement

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

Insider Transactions at QUALCOMM

In other news, major shareholder Inc/De Qualcomm sold 412,500 shares of the stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $16.00, for a total value of $6,600,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Akash J. Palkhiwala sold 3,333 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $161.28, for a total value of $537,546.24. Following the completion of the transaction, the chief financial officer directly owned 46,446 shares of the company's stock, valued at approximately $7,490,810.88. The trade was a 6.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders 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

A number of hedge funds and other institutional investors have recently bought and sold shares of QCOM. Banque Transatlantique SA acquired a new stake in QUALCOMM during the 4th quarter valued at $26,000. Atlantic Edge Private Wealth Management LLC increased its holdings in QUALCOMM by 70.0% during the 1st quarter. Atlantic Edge Private Wealth Management LLC now owns 170 shares of the wireless technology company's stock valued at $26,000 after purchasing an additional 70 shares in the last quarter. Vermillion & White Wealth Management Group LLC boosted its position in QUALCOMM by 122.4% in the 1st quarter. Vermillion & White Wealth Management Group LLC now owns 169 shares of the wireless technology company's stock valued at $26,000 after buying an additional 93 shares during the last quarter. WFA Asset Management Corp bought a new position in QUALCOMM in the 1st quarter valued at $27,000. Finally, Sunbeam Capital Management LLC bought a new position in QUALCOMM in the 4th quarter valued at $29,000. 74.35% of the stock is owned by institutional investors and hedge funds.

About QUALCOMM

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.