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

Key Points

• Qualcomm shares fell 3.2% to about $157.53 in midday trading, with volume roughly 41% below the average daily level.
• Analysts have a consensus “Hold” rating and an average price target of $203.63, despite mixed opinions ranging from “Strong Buy” to “Sell.”
• The latest quarter showed $9.95 billion in revenue, exceeding estimates, but EPS of $2.21 slightly missed expectations and revenue declined 4% year over year. Qualcomm also declared a quarterly dividend of $0.92 per share, representing a 2.3% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares dropped 3.2% during mid-day trading on Wednesday . The company traded as low as $157.10 and last traded at $157.53. Approximately 9,666,740 shares traded hands during mid-day trading, a decline of 41% from the average daily volume of 16,506,037 shares. The stock had previously closed at $162.67.

Analyst Upgrades and Downgrades

QCOM has been the topic of a number of research analyst reports. The Goldman Sachs Group set a $160.00 price target on Qualcomm in a report on Thursday, July 30th. Zacks Research raised Qualcomm from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Tigress Financial raised their price objective on Qualcomm from $270.00 to $280.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Dbs Bank upgraded shares of Qualcomm to a "moderate buy" rating in a report on Tuesday, July 7th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Qualcomm in a research report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twenty-one have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $203.63.

Qualcomm Stock Performance

The firm has a 50-day simple moving average of $194.76 and a two-hundred day simple moving average of $167.49. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $165.44 billion, a price-to-earnings ratio of 18.23, a price-to-earnings-growth ratio of 13.64 and a beta of 1.65.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing the consensus estimate of $2.23 by ($0.02). Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The firm had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.69 billion. During the same period in the previous year, the firm posted $2.77 EPS. The company's quarterly revenue was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, sell-side analysts forecast that Qualcomm Incorporated will post 7.94 earnings per share for the current fiscal year.

Qualcomm Announces Dividend

The firm 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 dividend of $0.92 per share. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.3%. Qualcomm's dividend payout ratio is 42.59%.

Insider Activity

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total transaction of $529,750.00. Following the transaction, the executive vice president directly owned 28,184 shares of the company's stock, valued at $5,972,189.60. This represents a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of the business's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 11,529 shares of company stock worth $2,112,945. 0.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Qualcomm

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP bought a new position in Qualcomm in the 1st quarter worth $26,000. Richardson Financial Services Inc. increased its stake in shares of Qualcomm by 90.9% in 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 period. Torren Management LLC acquired a new position in shares of Qualcomm during the 4th quarter worth about $29,000. Caitong International Asset Management Co. Ltd boosted its stake in Qualcomm by 17,000.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock valued at $29,000 after purchasing an additional 170 shares during the period. Finally, Birchwood Financial Partners Inc. acquired a new stake in Qualcomm in the 4th quarter valued at approximately $31,000. 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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