Qualcomm (NASDAQ:QCOM) Trading Up 4.3% - Time to Buy?

Key Points

• Qualcomm shares rose 4.3% in midday trading, reaching as high as $226.46 after closing at $211.72 the prior session. Trading volume was below average, with about 13.9 million shares changing hands.
• Analyst sentiment remains mixed: several firms recently adjusted ratings and targets, including Daiwa Securities upgrading QCOM to outperform with a $225 target and Morgan Stanley initiating coverage with an overweight rating. Overall, MarketBeat shows a Hold consensus and an average price target of $184.29.
• Qualcomm reported quarterly earnings of $2.65 per share, topping estimates, while revenue came in roughly in line at $10.60 billion. The company also increased its quarterly dividend to $0.92 per share and authorized a $20 billion share repurchase program.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares were up 4.3% during mid-day trading on Monday . The stock traded as high as $226.46 and last traded at $220.81. Approximately 13,861,170 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 16,233,130 shares. The stock had previously closed at $211.72.

Analyst Upgrades and Downgrades

Several analysts have issued reports on QCOM shares. BNP Paribas Exane lowered Qualcomm to a "neutral" rating in a research note on Wednesday, April 29th. Citigroup boosted their target price on Qualcomm from $140.00 to $160.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. Daiwa Securities Group upgraded Qualcomm from a "neutral" rating to an "outperform" rating and set a $225.00 target price on the stock in a research note on Friday, May 8th. JPMorgan Chase & Co. boosted their target price on Qualcomm from $140.00 to $160.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. Finally, Morgan Stanley started coverage on Qualcomm in a research note on Friday, May 8th. They issued an "overweight" rating on the stock. Fifteen research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $184.29.

Qualcomm Stock Performance

The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.61 and a current ratio of 2.37. The company has a market capitalization of $232.73 billion, a P/E ratio of 24.00, a price-to-earnings-growth ratio of 26.19 and a beta of 1.59. The business has a 50 day moving average of $184.43 and a 200-day moving average of $164.85.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating 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 period in the previous year, the company posted $2.85 EPS. The firm'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 8 EPS for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be paid a $0.92 dividend. The ex-dividend date is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a yield of 1.7%. This is an increase from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is currently 40.00%.

Qualcomm declared that its Board of Directors has authorized a share repurchase program 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 purchase up to 14.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the company's stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $130.34, for a total value of $325,850.00. Following the transaction, the executive vice president directly owned 30,684 shares in the company, valued at $3,999,352.56. This represents a 7.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the company's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the transaction, the executive vice president owned 39,735 shares in the company, valued at $7,065,677.70. This represents a 7.45% decrease in their ownership of the stock. 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. Insiders have sold 21,806 shares of company stock valued at $3,928,958 over the last 90 days. 0.05% of the stock is owned by insiders.

Hedge Funds Weigh In On Qualcomm

A number of institutional investors have recently added to or reduced their stakes in QCOM. Richardson Financial Services Inc. boosted its holdings in shares of Qualcomm by 90.9% in the 4th 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 in the last quarter. Torren Management LLC purchased a new position in shares of Qualcomm in the 4th quarter worth about $29,000. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after purchasing an additional 170 shares in the last quarter. Birchwood Financial Partners Inc. purchased a new position in shares of Qualcomm in the 4th quarter worth about $31,000. Finally, Commonwealth Retirement Investments LLC purchased a new position in shares of Qualcomm in the 4th quarter worth about $32,000. 74.35% of the stock is currently owned by institutional investors.

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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