Qualcomm (NASDAQ:QCOM) Shares Down 1.9% - Here's What Happened

Key Points

• Qualcomm shares fell 1.9% on Tuesday, trading between $179.00 and $182.97 after closing at $186.48 the prior day.
• Recent analyst activity has been mixed but generally supportive, with several firms raising price targets; however, the consensus rating remains Hold and the average price target is $220.45.
• The company reported quarterly EPS and revenue that slightly beat estimates, but revenue still declined 3.5% year over year. Qualcomm also has a $20 billion share repurchase authorization, which signals management sees value in the stock.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) dropped 1.9% on Tuesday . The stock traded as low as $179.00 and last traded at $182.97. 15,531,083 shares traded hands during trading, a decline of 9% from the average daily volume of 17,031,117 shares. The stock had previously closed at $186.48.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Roth Capital started coverage on shares of Qualcomm in a report on Friday, May 8th. They issued a "buy" rating for the company. Daiwa Securities Group upgraded shares of Qualcomm from a "neutral" rating to an "outperform" rating and set a $225.00 price objective for the company in a research note on Friday, May 8th. Argus set a $220.00 target price on Qualcomm in a research report on Friday, May 1st. Morgan Stanley raised Qualcomm from an "underweight" rating to an "equal weight" rating and boosted their target price for the company from $146.00 to $231.00 in a report on Thursday, June 25th. Finally, Wells Fargo & Company raised their price target on Qualcomm from $230.00 to $265.00 and gave the stock an "equal weight" rating in a research note on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twenty have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $220.45.

Qualcomm Price Performance

The company has a 50-day moving average of $205.65 and a 200-day moving average of $167.87. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.61 and a current ratio of 2.37. The stock has a market cap of $192.85 billion, a price-to-earnings ratio of 19.89, a PEG ratio of 5.24 and a beta of 1.63.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.56 by $0.09. The company had revenue of $10.60 billion for the quarter, compared to the consensus estimate of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The company's revenue was down 3.5% on a year-over-year basis. During the same period last year, the business posted $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, equities research analysts predict that Qualcomm Incorporated will post 7.96 earnings per share for the current year.

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

Insider Activity

In other news, CAO Patricia Y. Grech sold 829 shares of the firm's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $201.77, for a total value of $167,267.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total transaction of $569,024.00. Following the transaction, the executive vice president owned 39,735 shares in the company, valued at approximately $7,065,677.70. This trade represents a 7.45% 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. Over the last quarter, insiders sold 21,721 shares of company stock valued at $3,918,290. 0.05% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Baron Wealth Management LLC acquired a new stake in Qualcomm in the second quarter valued at $248,000. GK Wealth Management LLC purchased a new position in shares of Qualcomm in the 2nd quarter valued at about $238,000. GAMMA Investing LLC boosted its holdings in Qualcomm by 27.4% during the second quarter. GAMMA Investing LLC now owns 28,085 shares of the wireless technology company's stock worth $5,190,000 after buying an additional 6,033 shares in the last quarter. Grant Private Wealth Management Inc grew its position in Qualcomm by 37.8% during the second quarter. Grant Private Wealth Management Inc now owns 5,659 shares of the wireless technology company's stock worth $1,046,000 after buying an additional 1,553 shares during the period. Finally, Prota Financial LLC purchased a new position in Qualcomm in the second quarter valued at about $231,000. Hedge funds and other institutional investors 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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