Qualcomm (NASDAQ:QCOM) Shares Down 1.2% - Here's Why

Key Points

• Qualcomm shares fell 1.2% to $160.19 in below-average trading volume, extending weakness below the stock’s 50-day moving average of $181.61.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $203.63; recent targets ranged from $160 to $265.
• Qualcomm slightly missed quarterly EPS estimates while revenue exceeded expectations, and revenue declined 4% year over year. The company also declared a quarterly dividend of $0.92 per share, representing a 2.3% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price was down 1.2% on Tuesday . The company traded as low as $156.73 and last traded at $160.19. Approximately 11,049,105 shares were traded during trading, a decline of 31% from the average daily volume of 16,020,411 shares. The stock had previously closed at $162.18.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Bank of America lifted their price objective on Qualcomm from $165.00 to $195.00 and gave the company an "underperform" rating in a research report on Tuesday, June 23rd. The Goldman Sachs Group set a $160.00 price target on Qualcomm in a research note on Thursday, July 30th. JPMorgan Chase & Co. lifted their price target on Qualcomm from $160.00 to $265.00 and gave the company a "neutral" rating in a report on Friday, June 5th. Melius Research set a $220.00 price objective on shares of Qualcomm in a research note on Monday, May 18th. Finally, Wells Fargo & Company cut their price objective on shares of Qualcomm from $265.00 to $170.00 and set an "equal weight" rating on the stock in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twenty have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $203.63.

Qualcomm Stock Down 1.2%

The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46. The firm has a market capitalization of $168.24 billion, a PE ratio of 18.54, a price-to-earnings-growth ratio of 15.25 and a beta of 1.65. The firm has a 50-day moving average of $181.61 and a two-hundred day moving average of $167.88.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing analysts' consensus estimates 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 net margin of 21.01% and a return on equity of 38.36%. 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, equities research analysts forecast that Qualcomm Incorporated will post 7.76 EPS for the current year.

Qualcomm Announces Dividend

The company 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 is Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.3%. Qualcomm's payout ratio is presently 42.59%.

Insider Transactions at Qualcomm

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $163.26, for a total transaction of $408,150.00. Following the transaction, the executive vice president directly owned 20,684 shares of the company's stock, valued at $3,376,869.84. The trade was a 10.78% decrease in their ownership of the stock. The sale was disclosed in a filing 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 stock was 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. 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. In the last quarter, insiders sold 11,529 shares of company stock worth $1,991,345. 0.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Qualcomm

Hedge funds have recently made changes to their positions in the business. Torren Management LLC purchased a new position in Qualcomm in the fourth quarter valued at about $29,000. Caitong International Asset Management Co. Ltd boosted its position 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 buying an additional 170 shares during the period. Birchwood Financial Partners Inc. purchased a new stake in shares of Qualcomm in the fourth quarter worth about $31,000. ABS Investment Management LLC acquired a new stake in shares of Qualcomm in the second quarter valued at about $34,000. Finally, Commonwealth Retirement Investments LLC acquired a new stake in shares of Qualcomm in the fourth quarter valued at about $32,000. Hedge funds and other institutional investors own 74.35% of the company's stock.

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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