Qualcomm (NASDAQ:QCOM) Shares Down 6.1% Following Insider Selling

Key Points

• Qualcomm shares fell 6.1% in mid-day trading after insider selling news, with volume jumping to 24.3 million shares, well above its average session volume.
• EVP Akash J. Palkhiwala sold 2,500 shares at an average price of $211.90, a transaction worth about $529,750, and the sale was made under a pre-arranged Rule 10b5-1 plan.
• Despite the selloff, Qualcomm recently beat quarterly earnings and revenue estimates and also raised its dividend, while analysts remain mixed with a consensus rating of “Hold.”

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) fell 6.1% during mid-day trading on Thursday following insider selling activity. The company traded as low as $199.66 and last traded at $200.08. 24,318,218 shares traded hands during mid-day trading, an increase of 63% from the average session volume of 14,928,271 shares. The stock had previously closed at $213.17.

Specifically, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total transaction of $529,750.00. Following the completion of the transaction, the executive vice president directly owned 28,184 shares of the company's stock, valued at approximately $5,972,189.60. This trade represents a 8.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of research firms have recently commented on QCOM. UBS Group downgraded shares of Qualcomm from a "neutral" rating to an "underperform" rating in a report on Friday, May 8th. JPMorgan Chase & Co. raised their price objective on shares of Qualcomm from $140.00 to $160.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. TD Cowen lifted their price target on shares of Qualcomm from $150.00 to $200.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Argus set a $220.00 price target on shares of Qualcomm in a report on Friday, May 1st. Finally, Rosenblatt Securities reissued a "buy" rating and set a $190.00 price target on shares of Qualcomm in a report on Thursday, April 30th. Fourteen investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $180.37.

Qualcomm News Summary

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm posted stronger-than-expected fiscal second-quarter results, with EPS and revenue both slightly ahead of estimates, helping reassure investors that core fundamentals remain solid. Why Is Qualcomm (QCOM) Stock Soaring Today
• Positive Sentiment: Analysts turned more constructive after the results, citing Qualcomm’s data center processor progress, custom silicon wins with hyperscalers, and easing US-China tariff tensions as reasons for additional upside. Qualcomm: The Cheapest AI Winner (Rating Upgrade)
• Positive Sentiment: Qualcomm’s new Snapdragon platforms and AI features are supporting the view that its smartphone business can still grow while the company expands into higher-growth markets. QUALCOMM Incorporated (QCOM) Eyes Smartphone Growth with New Snapdragon Platforms
• Positive Sentiment: Wall Street analysts have recently raised price targets and upgraded the stock, reinforcing the bullish case after the latest rally. Qualcomm (QCOM) price target increased by 12.91% to 180.60
• Neutral Sentiment: Insider selling by EVP Akash Palkhiwala was disclosed, but it was done under a pre-arranged trading plan and is not necessarily a bearish signal. Qualcomm NASDAQ: QCOM EVP Sells $529,750.00 in Stock
• Negative Sentiment: Some commentary suggests the semiconductor rally may be cooling, and Qualcomm could remain volatile if investors rotate out of AI chip winners. Wall Street Is Worried About a ‘Sizzling' Semiconductor Trade
• Negative Sentiment: Reports also note ongoing concerns about competition and smartphone-related headwinds, which could limit how far the recent move can extend. Wall Street analysts update Qualcomm's stock price target for the next 12 months

Qualcomm Stock Down 6.1%

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 $210.88 billion, a price-to-earnings ratio of 21.75, a PEG ratio of 26.05 and a beta of 1.49. The firm's 50-day simple moving average is $144.88 and its two-hundred day simple moving average is $157.33.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $10.60 billion during the quarter, compared to analysts' expectations of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter last year, the company posted $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, sell-side analysts expect that Qualcomm Incorporated will post 7.99 EPS for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. The ex-dividend date is Thursday, June 4th. This represents a $3.68 annualized dividend and a dividend yield of 1.8%. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is presently 38.70%.

Qualcomm declared that its Board of Directors has initiated a share buyback plan on Tuesday, March 17th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the wireless technology company to reacquire up to 14.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of QCOM. Brighton Jones LLC lifted its stake in Qualcomm by 116.6% in the fourth quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company's stock valued at $2,666,000 after buying an additional 9,343 shares in the last quarter. Revolve Wealth Partners LLC lifted its stake in Qualcomm by 15.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company's stock valued at $391,000 after buying an additional 340 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in Qualcomm by 44.3% in the second quarter. Sivia Capital Partners LLC now owns 3,325 shares of the wireless technology company's stock valued at $530,000 after buying an additional 1,020 shares in the last quarter. Main Street Financial Solutions LLC lifted its stake in Qualcomm by 6.1% in the second quarter. Main Street Financial Solutions LLC now owns 5,778 shares of the wireless technology company's stock valued at $920,000 after buying an additional 333 shares in the last quarter. Finally, Transamerica Financial Advisors LLC lifted its stake in Qualcomm by 9.7% in the second quarter. Transamerica Financial Advisors LLC now owns 6,800 shares of the wireless technology company's stock valued at $1,083,000 after buying an additional 603 shares in the last quarter. 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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