Qualcomm (NASDAQ:QCOM) Trading Up 7.3% - Still a Buy?

Key Points

• Qualcomm shares rose 7.3% to about $162.67 in mid-day trading, but remain below their 50-day moving average of $196.48 and 200-day moving average of $167.51.
• Analyst sentiment is mixed: Qualcomm has an average rating of “Hold” and an average price target of $203.63, despite several Buy or Outperform ratings and recent target-price cuts.
• The company slightly missed quarterly earnings expectations, reporting $2.21 per share versus $2.23 expected, while revenue of $9.95 billion exceeded estimates but declined 4% year over year. Qualcomm also declared a quarterly dividend of $0.92 per share, yielding approximately 2.3% annually.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price traded up 7.3% during mid-day trading on Tuesday . The stock traded as high as $163.48 and last traded at $162.67. Approximately 15,342,678 shares traded hands during mid-day trading, a decline of 7% from the average session volume of 16,562,367 shares. The stock had previously closed at $151.57.

Analyst Ratings Changes

QCOM has been the topic of a number of recent research reports. Benchmark decreased their price objective on Qualcomm from $300.00 to $270.00 and set a "buy" rating on the stock in a report on Monday, July 27th. Evercore set a $159.00 target price on Qualcomm in a report on Thursday, July 30th. Wells Fargo & Company cut their target price on Qualcomm from $265.00 to $170.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Daiwa Securities Group upgraded Qualcomm from a "neutral" rating to an "outperform" rating and set a $225.00 target price for the company in a research report on Friday, May 8th. Finally, DZ Bank raised Qualcomm from a "hold" rating to a "buy" rating and set a $265.00 price target on the stock in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twenty-one have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Qualcomm presently has an average rating of "Hold" and an average target price of $203.63.

Qualcomm Stock Performance

The stock has a market capitalization of $170.80 billion, a price-to-earnings ratio of 18.83 and a beta of 1.65. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The stock's 50-day simple moving average is $196.48 and its 200 day simple moving average is $167.51.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing the consensus estimate of $2.23 by ($0.02). Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.The firm had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.69 billion. During the same period in the prior year, the company posted $2.77 earnings per share. Qualcomm'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. Analysts expect that Qualcomm Incorporated will post 7.89 earnings per share for the current fiscal year.

Qualcomm Dividend Announcement

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

Insider Activity at Qualcomm

In other Qualcomm news, CAO Patricia Y. Grech sold 829 shares of Qualcomm stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 business's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $147.04, for a total value of $470,528.00. Following the completion of the transaction, the executive vice president directly owned 36,535 shares in the company, valued at approximately $5,372,106.40. This represents a 8.05% decrease in their position. 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 sold 11,529 shares of company stock valued at $2,112,945 in the last three months. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP acquired a new position in shares of Qualcomm during the first quarter worth approximately $26,000. Richardson Financial Services Inc. increased its holdings 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 valued at $29,000 after purchasing an additional 80 shares in the last quarter. Torren Management LLC acquired a new stake in shares of Qualcomm in the fourth quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd raised its position in 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 during the last quarter. Finally, Birchwood Financial Partners Inc. bought a new position in Qualcomm in the 4th quarter worth approximately $31,000. 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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