QUALCOMM (NASDAQ:QCOM) Shares Down 4.4% - Here's Why

Key Points

• QUALCOMM's stock price decreased by 4.4% during trading, closing at $172.84, after reaching a peak of $180.72. This marks a significant volume increase, with over 12 million shares traded.
• Analysts have set new price targets for QUALCOMM; while JPMorgan Chase & Co. raised its target to $210.00, Mizuho reduced theirs to $185.00, indicating a range of expectations from an "overweight" to "outperform" rating.
• The company announced a quarterly dividend of $0.89, with a record date of December 4th, which implies an annual dividend yield of 2.1%.

QUALCOMM Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price fell 4.4% during trading on Tuesday . The company traded as low as $172.29 and last traded at $172.84. 12,140,335 shares traded hands during trading, an increase of 40% from the average session volume of 8,643,163 shares. The stock had previously closed at $180.72.

Analysts Set New Price Targets

A number of brokerages have commented on QCOM. JPMorgan Chase & Co. increased their target price on QUALCOMM from $200.00 to $210.00 and gave the company an "overweight" rating in a report on Tuesday. Mizuho decreased their price objective on QUALCOMM from $190.00 to $185.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Rosenblatt Securities restated a "buy" rating and set a $225.00 price objective on shares of QUALCOMM in a report on Tuesday, October 28th. UBS Group set a $165.00 price objective on QUALCOMM in a report on Monday, October 27th. Finally, Citigroup raised their price objective on QUALCOMM from $170.00 to $175.00 and gave the stock a "neutral" rating in a report on Tuesday, October 28th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, QUALCOMM currently has a consensus rating of "Moderate Buy" and a consensus target price of $184.41.

QUALCOMM Stock Down 4.4%

The stock has a market cap of $186.49 billion, a price-to-earnings ratio of 16.67, a PEG ratio of 2.59 and a beta of 1.23. The company has a quick ratio of 2.38, a current ratio of 3.19 and a debt-to-equity ratio of 0.54. The stock has a fifty day moving average of $166.34 and a two-hundred day moving average of $157.13.

QUALCOMM Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 18th. Investors of record on Thursday, December 4th will be issued a $0.89 dividend. The ex-dividend date is Thursday, December 4th. This represents a $3.56 dividend on an annualized basis and a yield of 2.1%. QUALCOMM's dividend payout ratio (DPR) is presently 34.33%.

Insider Transactions at QUALCOMM

In related news, CAO Patricia Y. Grech sold 273 shares of QUALCOMM stock in a transaction on Friday, September 12th. The stock was sold at an average price of $161.42, for a total value of $44,067.66. Following the transaction, the chief accounting officer owned 404 shares in the company, valued at approximately $65,213.68. This trade represents a 40.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Cristiano R. Amon sold 150,000 shares of QUALCOMM stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $165.56, for a total value of $24,834,000.00. Following the completion of the transaction, the chief executive officer owned 149,304 shares in the company, valued at $24,718,770.24. The trade was a 50.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 163,169 shares of company stock worth $26,978,998 over the last ninety days. 0.08% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of QCOM. Brighton Jones LLC lifted its stake in shares of QUALCOMM by 116.6% during the fourth quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company's stock worth $2,666,000 after purchasing an additional 9,343 shares in the last quarter. Revolve Wealth Partners LLC lifted its stake in shares of QUALCOMM by 15.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company's stock worth $391,000 after purchasing an additional 340 shares in the last quarter. Envestnet Asset Management Inc. lifted its stake in shares of QUALCOMM by 0.7% during the first quarter. Envestnet Asset Management Inc. now owns 2,415,408 shares of the wireless technology company's stock worth $371,031,000 after purchasing an additional 16,791 shares in the last quarter. TD Private Client Wealth LLC lifted its stake in shares of QUALCOMM by 6.1% during the first quarter. TD Private Client Wealth LLC now owns 7,399 shares of the wireless technology company's stock worth $1,137,000 after purchasing an additional 428 shares in the last quarter. Finally, Callan Capital LLC increased its position in shares of QUALCOMM by 10.8% during the first quarter. Callan Capital LLC now owns 3,160 shares of the wireless technology company's stock worth $485,000 after acquiring an additional 309 shares during the last quarter. Institutional investors and hedge funds own 74.35% of the company's stock.

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.

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