Qualcomm (NASDAQ:QCOM) Trading Down 1.4% After Insider Selling

Key Points

• Qualcomm shares fell 1.4% to $158.53 after Chief Accounting Officer Patricia Y. Grech sold 625 shares for approximately $101,781 under a pre-arranged Rule 10b5-1 trading plan.
• Analysts maintain a consensus “Hold” rating with a $203.63 price target, although views range from “Sell” to “Strong Buy.”
• Qualcomm reported quarterly revenue of $9.95 billion, exceeding expectations, but earnings per share of $2.21 slightly missed estimates and revenue declined 4% year over year; the company also declared a $0.92 quarterly dividend.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price dropped 1.4% on Monday after an insider sold shares in the company. The company traded as low as $156.23 and last traded at $158.53. Approximately 8,776,190 shares were traded during mid-day trading, a decline of 45% from the average daily volume of 15,852,934 shares. The stock had previously closed at $160.75.

Specifically, CAO Patricia Y. Grech sold 625 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $162.85, for a total transaction of $101,781.25. Following the sale, the chief accounting officer directly owned 208 shares of the company's stock, valued at $33,872.80. The trade was a 75.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

QCOM has been the subject of a number of analyst reports. Argus set a $220.00 price objective on shares of Qualcomm in a research note on Friday, May 1st. Melius Research set a $220.00 target price on shares of Qualcomm in a research report on Monday, May 18th. The Goldman Sachs Group set a $160.00 price target on shares of Qualcomm in a research report on Thursday, July 30th. Dbs Bank raised shares of Qualcomm to a "moderate buy" rating in a research note on Tuesday, July 7th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $160.00 price objective on shares of Qualcomm in a research report on Thursday, April 30th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twenty have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $203.63.

Qualcomm Stock Performance

The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28. The firm has a market capitalization of $166.49 billion, a price-to-earnings ratio of 18.35, a PEG ratio of 14.84 and a beta of 1.65. The firm's fifty day moving average is $178.26 and its 200 day moving average is $168.12.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing analysts' consensus estimates of $2.23 by ($0.02). Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The company had revenue of $9.95 billion for the quarter, compared to analysts' expectations of $9.69 billion. During the same period in the previous year, the firm posted $2.77 earnings per share. The business's revenue for the quarter was down 4.0% on a year-over-year basis. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, analysts predict that Qualcomm Incorporated will post 7.74 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.92 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.3%. Qualcomm's dividend payout ratio is 42.59%.

Hedge Funds Weigh In On Qualcomm

A number of hedge funds have recently modified their holdings of QCOM. Baxter Bros Inc. acquired a new stake in shares of Qualcomm in the second quarter valued at approximately $17,844,000. MUFG Securities EMEA plc raised its stake in Qualcomm by 112.2% in the 4th quarter. MUFG Securities EMEA plc now owns 43,986 shares of the wireless technology company's stock valued at $7,524,000 after acquiring an additional 23,262 shares during the period. Swedbank AB raised its stake in Qualcomm by 1.5% in the 4th quarter. Swedbank AB now owns 1,533,420 shares of the wireless technology company's stock valued at $262,291,000 after acquiring an additional 23,110 shares during the period. Sequoia Financial Advisors LLC lifted its holdings in Qualcomm by 5.7% during the 4th quarter. Sequoia Financial Advisors LLC now owns 143,690 shares of the wireless technology company's stock valued at $24,578,000 after purchasing an additional 7,804 shares during the last quarter. Finally, Valley Wealth Managers Inc. lifted its holdings in Qualcomm by 6.1% during the 4th quarter. Valley Wealth Managers Inc. now owns 40,009 shares of the wireless technology company's stock valued at $6,844,000 after purchasing an additional 2,288 shares during the last quarter. 74.35% of the stock is owned by institutional investors and hedge funds.

Qualcomm Company Profile

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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