Qualcomm (NASDAQ:QCOM) Shares Down 2.7% - Should You Sell?

Key Points

• Qualcomm shares fell 2.7% on Monday, trading as low as $181.81 before closing at $183.98, below the prior close of $189.16. Trading volume was lighter than usual at 12.98 million shares versus the 16.86 million average.
• Despite the drop, Wall Street sentiment is mixed but generally constructive: analysts currently rate Qualcomm a Hold on average, with a consensus price target of $221.31. Recent target hikes from firms including Benchmark and Wells Fargo suggest some upside expectations remain.
• Qualcomm reported solid latest-quarter results, beating EPS and revenue estimates, and management authorized a $20 billion share buyback. The company also has seen some insider selling, while institutional investors continue to own a large majority of the stock.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price was down 2.7% during trading on Monday . The company traded as low as $181.81 and last traded at $183.98. 12,979,703 shares changed hands during mid-day trading, a decline of 23% from the average daily volume of 16,860,680 shares. The stock had previously closed at $189.16.

Analysts Set New Price Targets

QCOM has been the topic of a number of recent research reports. Melius Research set a $220.00 price target on shares of Qualcomm in a research report on Monday, May 18th. Benchmark raised their price target on shares of Qualcomm from $225.00 to $300.00 and gave the stock a "buy" rating in a research report on Thursday, June 25th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $160.00 price objective on shares of Qualcomm in a research note on Thursday, April 30th. Wells Fargo & Company raised their price target on shares of Qualcomm from $230.00 to $265.00 and gave the stock an "equal weight" rating in a research report on Thursday, June 25th. Finally, Monness Crespi & Hardt upgraded Qualcomm to a "buy" rating in a research report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twenty have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Qualcomm presently has an average rating of "Hold" and an average price target of $221.31.

Qualcomm Price Performance

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 stock has a market capitalization of $193.90 billion, a PE ratio of 20.00, a P/E/G ratio of 5.63 and a beta of 1.63. The stock's 50-day moving average is $209.59 and its 200 day moving average is $168.32.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, beating 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%.The firm's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, equities analysts predict that Qualcomm Incorporated will post 7.96 earnings per share for the current year.

Qualcomm declared that its board has initiated 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 a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total value of $529,750.00. Following the sale, the executive vice president directly owned 28,184 shares in the company, valued at $5,972,189.60. This trade represents a 8.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 Qualcomm stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the sale, the executive vice president directly 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. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 19,221 shares of company stock valued at $3,592,440. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

A number of hedge funds have recently made changes to their positions in the business. Your Advocates Ltd. LLP acquired a new position in Qualcomm during the 1st quarter worth about $26,000. Richardson Financial Services Inc. raised its position in shares of Qualcomm by 90.9% during 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 during the fourth quarter worth about $29,000. Caitong International Asset Management Co. Ltd boosted its position in Qualcomm by 17,000.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock valued at $29,000 after purchasing an additional 170 shares during the last quarter. Finally, Birchwood Financial Partners Inc. acquired a new position in shares of Qualcomm during the 4th quarter worth about $31,000. Institutional investors and hedge funds 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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