Stock Traders Purchase Large Volume of Call Options on Qualcomm (NASDAQ:QCOM)

Key Points

• Qualcomm saw unusual options activity on Friday, with investors buying 481,309 call options — about 532% above its average daily call volume.
• The company posted a solid quarterly report, with EPS of $2.65 beating estimates and revenue of $10.60 billion roughly in line with expectations, while also raising its quarterly dividend to $0.92 per share.
• Sentiment around the stock remains mixed but generally constructive: Qualcomm has authorized a $20 billion buyback, several analysts have lifted price targets, and institutions continue to hold a large majority of shares.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) was the target of some unusual options trading activity on Friday. Investors purchased 481,309 call options on the company. This is an increase of 532% compared to the average daily volume of 76,194 call options.

Insider Buying and Selling at Qualcomm

In related news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $130.34, for a total value of $325,850.00. Following the completion of the transaction, the executive vice president directly owned 30,684 shares of the company's stock, 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 SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 192 shares of the firm's stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $172.00, for a total value of $33,024.00. 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 ninety days, insiders sold 19,177 shares of company stock valued at $3,176,966. 0.05% of the stock is owned by company insiders.

Institutional Trading of Qualcomm

Institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of Qualcomm during the fourth quarter valued at $2,591,056,000. Wellington Management Group LLP increased its stake in shares of Qualcomm by 141.8% during the third quarter. Wellington Management Group LLP now owns 12,437,240 shares of the wireless technology company's stock valued at $2,069,059,000 after buying an additional 7,292,783 shares during the period. Geode Capital Management LLC increased its stake in shares of Qualcomm by 12.5% during the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company's stock valued at $4,931,968,000 after buying an additional 3,221,924 shares during the period. Invesco Ltd. increased its stake in shares of Qualcomm by 28.1% during the fourth quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company's stock valued at $2,163,030,000 after buying an additional 2,771,490 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in shares of Qualcomm by 36.8% during the third quarter. Dimensional Fund Advisors LP now owns 6,552,427 shares of the wireless technology company's stock valued at $1,090,025,000 after buying an additional 1,764,252 shares during the period. 74.35% of the stock is currently owned by institutional investors.

Qualcomm Stock Up 8.2%

NASDAQ:QCOM opened at $219.09 on Friday. Qualcomm has a twelve month low of $121.99 and a twelve month high of $228.05. The company has a market cap of $230.92 billion, a price-to-earnings ratio of 23.81, a price-to-earnings-growth ratio of 24.99 and a beta of 1.49. The stock has a fifty day simple moving average of $138.77 and a 200-day simple moving average of $155.88. 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 (NASDAQ:QCOM - Get Free Report) last released its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, topping the consensus estimate of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same period last year, the company earned $2.85 earnings per share. 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. Analysts anticipate that Qualcomm will post 8.02 EPS for the current year.

Qualcomm announced that its board has authorized a stock repurchase program on Tuesday, March 17th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the wireless technology company to purchase up to 14.5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its shares are undervalued.

Qualcomm Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a dividend yield of 1.7%. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm's dividend payout ratio is 38.70%.

Analyst Ratings Changes

A number of brokerages recently issued reports on QCOM. Benchmark raised their price target on Qualcomm from $200.00 to $225.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Royal Bank Of Canada raised their price target on Qualcomm from $150.00 to $175.00 and gave the stock a "sector perform" rating in a research report on Thursday, April 30th. Robert W. Baird set a $300.00 price target on Qualcomm in a research report on Friday, May 1st. DZ Bank downgraded Qualcomm from a "buy" rating to a "hold" rating and set a $195.00 price target for the company. in a research report on Friday. Finally, Argus set a $220.00 price target on Qualcomm in a research report on Friday, May 1st. Fourteen investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $180.37.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Daiwa upgraded Qualcomm to Outperform and lifted its price target to $225, arguing the market is undervaluing Qualcomm’s move into AI infrastructure and data center silicon. Daiwa Just Upgraded Qualcomm to Outperform: $225 Price Target Bets on Data Center AI Pivot
• Positive Sentiment: Qualcomm’s new Snapdragon 6 Gen 5 and Snapdragon 4 Gen 5 mobile chips are fueling optimism that the company can keep extending its product cycle into lower-cost devices while adding AI features. What's driving Qualcomm stock higher?
• Positive Sentiment: Recent coverage highlights Qualcomm’s buyback program, a Snap AR partnership, strong earnings, and custom silicon wins as evidence that the company is successfully pivoting beyond its core smartphone business. Qualcomm Climbs 8% as Buyback, Snap AR Partnership Power Pivot Beyond Smartphones
• Neutral Sentiment: Some traders note the stock has moved sharply higher in a short period, which can make it vulnerable to near-term pullbacks even if the longer-term AI thesis remains intact. Qualcomm Stock Is Soaring Today: What's Going On?
• Neutral Sentiment: Another commentary piece says Qualcomm’s RSI is in overbought territory after the recent run, suggesting momentum may cool before the next leg higher. What's driving Qualcomm stock higher?
• Negative Sentiment: DZ Bank downgraded Qualcomm from Buy to Hold and set a $195 target, reflecting some caution after the sharp rally. Trump Could Put These 8 Stocks In The Spotlight For China Trip: Here Are The CEOs That Could Be Invited

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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