Qualcomm (NASDAQ:QCOM) Trading Down 3.2% - Should You Sell?

Key Points

• Qualcomm shares fell 3.2% on Tuesday, trading as low as $177.45 before last changing hands at $178.10, well below the prior close of $183.98.
• Analysts remain mixed on the stock: Qualcomm currently carries a consensus “Hold” rating with an average price target of $221.31, even as several firms recently raised their targets.
• The company reported better-than-expected quarterly EPS of $2.65 versus the $2.56 consensus, and it also has a $20 billion share repurchase authorization in place, signaling management support for the stock.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price fell 3.2% on Tuesday . The company traded as low as $177.45 and last traded at $178.10. 12,781,957 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 16,838,730 shares. The stock had previously closed at $183.98.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on QCOM shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Qualcomm in a research note on Wednesday, June 24th. Susquehanna boosted their price objective on shares of Qualcomm from $160.00 to $190.00 and gave the stock a "neutral" rating in a report on Thursday, June 25th. Robert W. Baird set a $300.00 target price on shares of Qualcomm in a research report on Friday, May 1st. Oppenheimer lowered shares of Qualcomm from a "market perform" rating to a "market perform" rating in a research report on Friday, May 8th. Finally, Citigroup lifted their price target on shares of Qualcomm from $160.00 to $198.00 and gave the company a "neutral" rating in a research report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, twenty have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Qualcomm presently has a consensus rating of "Hold" and an average price target of $221.31.

Qualcomm Stock Down 3.2%

The stock has a market cap of $187.72 billion, a price-to-earnings ratio of 19.36, a P/E/G ratio of 5.63 and a beta of 1.63. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The firm's 50 day moving average is $209.68 and its two-hundred day moving average is $168.38.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, topping analysts' consensus estimates of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The company had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. During the same quarter in the prior year, the company posted $2.85 EPS. The business's revenue for the quarter was down 3.5% compared to the same quarter last year. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, sell-side analysts predict that Qualcomm Incorporated will post 7.96 EPS for the current year.

Qualcomm announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to repurchase up to 14.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the company's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total value of $529,750.00. Following the completion of the transaction, the executive vice president directly owned 28,184 shares in the company, valued at approximately $5,972,189.60. This represents a 8.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $201.77, for a total transaction of $167,267.33. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 19,221 shares of company stock valued at $3,592,440. Insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

A number of hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC boosted its position in Qualcomm by 116.6% during the 4th quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company's stock worth $2,666,000 after acquiring an additional 9,343 shares during the period. Revolve Wealth Partners LLC raised 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 valued at $391,000 after purchasing an additional 340 shares in the last quarter. Sivia Capital Partners LLC raised its stake in shares of Qualcomm by 44.3% during the second quarter. Sivia Capital Partners LLC now owns 3,325 shares of the wireless technology company's stock valued at $530,000 after purchasing an additional 1,020 shares in the last quarter. Main Street Financial Solutions LLC lifted its holdings 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 worth $920,000 after purchasing an additional 333 shares during the period. Finally, Transamerica Financial Advisors LLC lifted its holdings 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 worth $1,083,000 after purchasing an additional 603 shares during the period. Institutional investors and hedge funds 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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