Qualcomm (NASDAQ:QCOM) Trading Down 1.4% - What's Next?

Key Points

• Shares fell 1.4% to $135.56 on mid-day trading with volume about 7% above average, while analysts' views are mixed — consensus rating is "Hold" with an average price target of $159.48 and individual targets ranging from $100 to $200.
• Qualcomm beat quarterly expectations, reporting $3.50 EPS (vs. $3.38 est.) and $12.25B revenue (vs. $12.16B est.), and set Q2 guidance of $2.45–$2.65 EPS; analysts expect about 8.25 EPS for the fiscal year.
• The company is increasing shareholder returns, raising the quarterly dividend to $0.92 ($3.68 annual, ~2.7% yield) and authorizing a $20 billion buyback (up to ~14.5% of outstanding shares).

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) fell 1.4% during mid-day trading on Tuesday . The stock traded as low as $135.05 and last traded at $135.56. 11,842,522 shares traded hands during trading, an increase of 7% from the average session volume of 11,050,553 shares. The stock had previously closed at $137.52.

Analysts Set New Price Targets

QCOM has been the topic of several research reports. Piper Sandler reaffirmed an "overweight" rating and issued a $200.00 target price on shares of Qualcomm in a research report on Thursday, February 5th. TD Cowen dropped their price target on Qualcomm from $190.00 to $150.00 and set a "buy" rating for the company in a report on Thursday, February 5th. Bank of America started coverage on Qualcomm in a report on Tuesday, March 10th. They issued an "underperform" rating and a $145.00 price objective on the stock. Sanford C. Bernstein reissued a "market perform" rating and set a $140.00 target price (down from $175.00) on shares of Qualcomm in a report on Thursday, March 26th. Finally, Seaport Research Partners restated a "sell" rating and issued a $100.00 price target on shares of Qualcomm in a research note on Monday, March 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $159.48.

Qualcomm Stock Performance

The stock has a 50 day moving average of $134.45 and a 200 day moving average of $156.11. The company has a quick ratio of 1.83, a current ratio of 2.51 and a debt-to-equity ratio of 0.64. The firm has a market cap of $144.64 billion, a price-to-earnings ratio of 28.01 and a beta of 1.28.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its earnings results on Wednesday, February 4th. The wireless technology company reported $3.50 EPS for the quarter, beating the consensus estimate of $3.38 by $0.12. The firm had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.16 billion. Qualcomm had a net margin of 11.96% and a return on equity of 44.09%. The business's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period last year, the firm earned $3.41 EPS. Qualcomm has set its Q2 2026 guidance at 2.450-2.650 EPS. As a group, analysts anticipate that Qualcomm Incorporated will post 8.25 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 paid a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Thursday, June 4th. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is 73.55%.

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

Insider Transactions at Qualcomm

In related news, EVP Akash J. Palkhiwala sold 3,333 shares of the company's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $137.65, for a total transaction of $458,787.45. Following the completion of the transaction, the executive vice president directly owned 35,599 shares in the company, valued at $4,900,202.35. This represents a 8.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $137.00, for a total transaction of $438,400.00. Following the completion of the transaction, the executive vice president directly owned 16,393 shares of the company's stock, valued at approximately $2,245,841. The trade was a 16.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 9,118 shares of company stock valued at $1,233,705 in the last three months. Company insiders own 0.05% of the company's stock.

Institutional Trading of Qualcomm

Hedge funds and other institutional investors have recently modified their holdings of the stock. Harbor Capital Advisors Inc. increased its holdings in Qualcomm by 72.2% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 155 shares of the wireless technology company's stock worth $26,000 after purchasing an additional 65 shares in the last quarter. Cloud Capital Management LLC bought a new stake in shares of Qualcomm during the third quarter worth about $27,000. Richardson Financial Services Inc. grew its holdings in shares of Qualcomm by 90.9% during 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 acquired a new position in shares of Qualcomm in the fourth quarter valued at approximately $29,000. Finally, Caitong International Asset Management Co. Ltd increased its stake in shares of Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock valued at $29,000 after buying an additional 170 shares during the period. Institutional investors own 74.35% of the company's stock.

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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