Qualcomm (NASDAQ:QCOM) Shares Down 3.4% - Time to Sell?

Key Points

• Qualcomm shares fell 3.4% to about $162.17 in mid-day trading, with volume roughly 44% below the average session volume.
• Analyst sentiment remains mixed but centers on a “Hold” consensus, with an average price target of $203.63; recent targets range from $160 to $270.
• Qualcomm slightly missed quarterly EPS expectations despite revenue beating forecasts, while revenue declined 4% year over year. The company also declared a quarterly dividend of $0.92 per share, equivalent to a 2.3% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price dropped 3.4% during mid-day trading on Monday . The company traded as low as $162.08 and last traded at $162.17. 9,216,400 shares were traded during trading, a decline of 44% from the average session volume of 16,368,268 shares. The stock had previously closed at $167.86.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Zacks Research raised Qualcomm from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Susquehanna lowered their price target on Qualcomm from $190.00 to $160.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. JPMorgan Chase & Co. upped their price target on shares of Qualcomm from $160.00 to $265.00 and gave the stock a "neutral" rating in a research note on Friday, June 5th. Argus set a $220.00 price objective on shares of Qualcomm in a research report on Friday, May 1st. Finally, Benchmark reduced their price objective on shares of Qualcomm from $300.00 to $270.00 and set a "buy" rating for the company in a research note on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twenty-one have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Qualcomm has a consensus rating of "Hold" and a consensus target price of $203.63.

Qualcomm Stock Performance

The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $170.32 billion, a P/E ratio of 18.77, a P/E/G ratio of 15.41 and a beta of 1.65. The business has a fifty day moving average price of $189.92 and a 200-day moving average price of $167.53.

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 business had revenue of $9.95 billion during the quarter, compared to analysts' expectations of $9.69 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.Qualcomm's quarterly revenue was down 4.0% compared to the same quarter last year. During the same period last year, the firm posted $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, sell-side analysts expect that Qualcomm Incorporated will post 7.78 EPS for the current year.

Qualcomm Dividend Announcement

The business also recently disclosed 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. This represents a $3.68 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm's payout ratio is presently 42.59%.

Insider Activity at Qualcomm

In related news, CAO Patricia Y. Grech sold 829 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $201.77, for a total transaction of $167,267.33. The sale was disclosed in a filing 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 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 completion of the sale, the executive vice president directly owned 36,535 shares of the company's stock, valued at approximately $5,372,106.40. This trade represents a 8.05% decrease in their position. 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. Insiders have sold a total of 11,529 shares of company stock worth $2,112,945 over the last quarter. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

Institutional investors and hedge funds have recently modified their holdings of the company. Richardson Financial Services Inc. boosted its position in Qualcomm by 90.9% in 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 last quarter. Torren Management LLC purchased a new stake in shares of Qualcomm during the 4th quarter valued at about $29,000. Caitong International Asset Management Co. Ltd lifted its stake in shares of Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after purchasing an additional 170 shares during the period. Birchwood Financial Partners Inc. bought a new position in shares of Qualcomm in the 4th quarter worth approximately $31,000. Finally, Commonwealth Retirement Investments LLC purchased a new position in shares of Qualcomm in the fourth quarter worth approximately $32,000. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

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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