Qualcomm Target of Unusually High Options Trading (NASDAQ:QCOM)

Key Points

• Qualcomm saw unusually heavy options activity on Friday, with traders buying 302,615 call options. That was about 203% above the stock’s average daily call volume.
• Sentiment around the stock was boosted by growth and AI-related news, including Stellantis expanding its technology partnership with Qualcomm for AI-enabled connected and autonomous vehicles. Analysts and commentary also suggested the recent rally could have more upside.
• The company also reported solid fundamentals and shareholder-friendly moves, including Q2 earnings that beat estimates, a new $20 billion share repurchase authorization, and a higher quarterly dividend of $0.92 per share.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock traders purchased 302,615 call options on the stock. This represents an increase of 203% compared to the average daily volume of 99,719 call options.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Stellantis expanded its multi-year technology partnership with Qualcomm, strengthening Qualcomm’s position in AI-enabled connected and autonomous vehicles. Qualcomm soars 12% as Stellantis deepens AI vehicle partnership
• Positive Sentiment: Analysts and market commentary highlighted Qualcomm’s strong comeback and suggested the rally may continue, with some calling for meaningful further upside. Prediction: Analysts Say Qualcomm Stock Is Set For A Massive Breakout
• Neutral Sentiment: Additional coverage framed Qualcomm as a beneficiary of broader AI and mobile-chip enthusiasm, with shares moving alongside other chip names such as Skyworks and Qorvo. Qualcomm Surges 12%, Skyworks Rallies 9%, Qorvo Rises 7%
• Neutral Sentiment: Insider and congressional stock sales were disclosed, but they appear modest relative to Qualcomm’s size and some transactions were pre-arranged, so the impact is likely limited. Patricia Grech Sells 829 Shares of Qualcomm NASDAQ: QCOM Stock

Insider Buying and Selling at Qualcomm

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $130.34, for a total transaction of $325,850.00. Following the completion of the transaction, the executive vice president directly owned 30,684 shares in the company, valued at approximately $3,999,352.56. This trade represents a 7.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 Qualcomm stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $201.77, for a total transaction 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. Insiders have sold a total of 19,306 shares of company stock valued at $3,435,583 over the last ninety days. Company insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Qualcomm

A number of large investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of Qualcomm during the 4th quarter worth $2,591,056,000. Wellington Management Group LLP boosted its stake in shares of Qualcomm by 141.8% during the 3rd quarter. Wellington Management Group LLP now owns 12,437,240 shares of the wireless technology company's stock worth $2,069,059,000 after acquiring an additional 7,292,783 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Qualcomm by 12.5% during the 4th quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company's stock worth $4,931,968,000 after acquiring an additional 3,221,924 shares during the last quarter. Invesco Ltd. boosted its stake in shares of Qualcomm by 28.1% during the 4th quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company's stock worth $2,163,030,000 after acquiring an additional 2,771,490 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Qualcomm by 36.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 6,552,427 shares of the wireless technology company's stock worth $1,090,025,000 after acquiring an additional 1,764,252 shares during the last quarter. Institutional investors own 74.35% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Barclays raised their price target on shares of Qualcomm from $130.00 to $150.00 and gave the company an "underweight" rating in a research report on Thursday, April 30th. Bank of America assumed coverage on shares of Qualcomm in a research report on Tuesday, March 10th. They set an "underperform" rating and a $145.00 price target for the company. BNP Paribas Exane downgraded shares of Qualcomm to a "neutral" rating in a research report on Wednesday, April 29th. Weiss Ratings reissued a "hold (c)" rating on shares of Qualcomm in a research report on Friday, March 27th. Finally, UBS Group downgraded shares of Qualcomm from a "neutral" rating to an "underperform" rating in a research report on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $181.79.

Qualcomm Trading Up 11.6%

NASDAQ:QCOM opened at $238.16 on Friday. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. Qualcomm has a 12 month low of $121.99 and a 12 month high of $247.90. The company has a market cap of $251.02 billion, a PE ratio of 25.89, a price-to-earnings-growth ratio of 26.43 and a beta of 1.49. The company has a 50 day simple moving average of $154.82 and a two-hundred day simple moving average of $158.89.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping analysts' consensus estimates of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same quarter in the previous year, the firm posted $2.85 EPS. The firm's revenue was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Research analysts forecast that Qualcomm will post 7.99 earnings per share for the current year.

Qualcomm announced that its board has approved a share repurchase program on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to buy up to 14.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Qualcomm Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a $0.92 dividend. This is a boost from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a yield of 1.5%. Qualcomm's payout ratio is presently 38.70%.

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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