QUALCOMM (NASDAQ:QCOM) Trading Down 1% - Here's Why

Key Points

• QUALCOMM's stock dropped 1% during mid-day trading on Wednesday, falling to $160.38, with trading volume declining by 75% compared to its average.
• Several analysts have adjusted their target prices for QUALCOMM, with a consensus rating of "Hold" and an average price target of $183.95.
• A quarterly dividend of $0.89 per share was announced, with an annualized yield of 2.23%, to be paid on September 25th to shareholders of record on September 4th.

QUALCOMM Incorporated (NASDAQ:QCOM - Get Free Report) dropped 1% during mid-day trading on Wednesday . The company traded as low as $160.57 and last traded at $160.38. Approximately 2,107,886 shares traded hands during trading, a decline of 75% from the average daily volume of 8,312,731 shares. The stock had previously closed at $162.08.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on QCOM shares. Susquehanna cut their target price on shares of QUALCOMM from $210.00 to $190.00 and set a "positive" rating for the company in a report on Thursday, May 1st. Robert W. Baird dropped their target price on shares of QUALCOMM from $250.00 to $216.00 and set an "outperform" rating for the company in a report on Thursday, May 1st. UBS Group lifted their price target on QUALCOMM from $145.00 to $165.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Seaport Res Ptn raised shares of QUALCOMM to a "hold" rating in a research report on Friday, May 9th. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $150.00 price target on shares of QUALCOMM in a report on Thursday, May 1st. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat.com, QUALCOMM has a consensus rating of "Hold" and an average price target of $183.95.

QUALCOMM Stock Down 1.7%

The firm's 50 day moving average price is $154.91 and its two-hundred day moving average price is $155.05. The company has a debt-to-equity ratio of 0.48, a quick ratio of 2.08 and a current ratio of 2.73. The company has a market cap of $174.92 billion, a P/E ratio of 16.26, a price-to-earnings-growth ratio of 2.07 and a beta of 1.26.

QUALCOMM (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The wireless technology company reported $2.85 EPS for the quarter, beating analysts' consensus estimates of $2.82 by $0.03. QUALCOMM had a return on equity of 40.11% and a net margin of 26.11%. The business had revenue of $10.98 billion during the quarter, compared to analyst estimates of $10.58 billion. During the same period in the prior year, the firm posted $2.44 EPS. QUALCOMM's quarterly revenue was up 17.0% compared to the same quarter last year. Equities research analysts anticipate that QUALCOMM Incorporated will post 9.39 EPS for the current fiscal year.

QUALCOMM Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Thursday, September 4th will be given a dividend of $0.89 per share. The ex-dividend date of this dividend is Thursday, September 4th. This represents a $3.56 dividend on an annualized basis and a yield of 2.23%. QUALCOMM's dividend payout ratio is presently 36.25%.

Insider Buying and Selling

In other QUALCOMM news, insider Heather S. Ace sold 1,600 shares of the company's stock in a transaction dated Friday, May 2nd. The shares were sold at an average price of $137.74, for a total transaction of $220,384.00. Following the completion of the sale, the insider directly owned 22,793 shares in the company, valued at $3,139,507.82. This represents a 6.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, major shareholder Inc/De Qualcomm sold 412,500 shares of the stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $16.00, for a total value of $6,600,000.00. The disclosure for this sale can be found here. Insiders sold a total of 424,099 shares of company stock worth $8,310,735 over the last ninety days. 0.08% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Eagle Strategies LLC grew its holdings in shares of QUALCOMM by 4.3% during the 4th quarter. Eagle Strategies LLC now owns 1,427 shares of the wireless technology company's stock worth $219,000 after acquiring an additional 59 shares during the period. Clark Capital Management Group Inc. raised its holdings in QUALCOMM by 3.6% in the fourth quarter. Clark Capital Management Group Inc. now owns 1,717 shares of the wireless technology company's stock worth $264,000 after purchasing an additional 59 shares in the last quarter. Capital Advantage Inc. lifted its position in QUALCOMM by 2.8% during the second quarter. Capital Advantage Inc. now owns 2,353 shares of the wireless technology company's stock valued at $375,000 after buying an additional 64 shares during the period. Rise Advisors LLC boosted its holdings in shares of QUALCOMM by 6.7% during the 1st quarter. Rise Advisors LLC now owns 1,048 shares of the wireless technology company's stock valued at $161,000 after buying an additional 66 shares in the last quarter. Finally, Bell Investment Advisors Inc grew its position in shares of QUALCOMM by 4.6% in the 1st quarter. Bell Investment Advisors Inc now owns 1,504 shares of the wireless technology company's stock worth $231,000 after buying an additional 66 shares during the period. Hedge funds and other institutional investors own 74.35% of the company's stock.

QUALCOMM Company Profile

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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