Wall Street Zen Downgrades QUALCOMM (NASDAQ:QCOM) to Hold

Key Points

• QUALCOMM has been downgraded from a "buy" to a "hold" rating by analysts at Wall Street Zen, indicating a shift in market sentiment toward the company.
• Despite this downgrade, the company reported a solid quarterly performance, with earnings per share of $2.77, exceeding expectations, and revenues rising by 10.4% year-over-year.
• Institutional investors hold a significant 74.35% of QUALCOMM's stock, reflecting strong confidence in the company's long-term prospects even amidst recent analyst rating changes.

QUALCOMM (NASDAQ:QCOM - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday.

A number of other equities analysts have also recently commented on QCOM. Sanford C. Bernstein set a $185.00 target price on shares of QUALCOMM and gave the stock an "outperform" rating in a research report on Monday, July 28th. Seaport Res Ptn upgraded shares of QUALCOMM to a "hold" rating in a research report on Friday, May 9th. Robert W. Baird lowered their price objective on shares of QUALCOMM from $250.00 to $216.00 and set an "outperform" rating for the company in a research report on Thursday, May 1st. Susquehanna reduced their target price on shares of QUALCOMM from $210.00 to $190.00 and set a "positive" rating on the stock in a research note on Thursday, May 1st. Finally, Rosenblatt Securities reaffirmed a "buy" rating and issued a $225.00 price target on shares of QUALCOMM in a research note on Thursday. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat, QUALCOMM has an average rating of "Hold" and a consensus target price of $181.10.

QUALCOMM Stock Up 1.0%

QCOM opened at $148.19 on Friday. The company has a 50 day moving average of $155.11 and a 200 day moving average of $154.86. The company has a market cap of $159.90 billion, a PE ratio of 14.29, a price-to-earnings-growth ratio of 1.90 and a beta of 1.23. QUALCOMM has a 12 month low of $120.80 and a 12 month high of $182.10. The company has a current ratio of 3.19, a quick ratio of 2.08 and a debt-to-equity ratio of 0.54.

QUALCOMM (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The wireless technology company reported $2.77 EPS for the quarter, topping the consensus estimate of $2.71 by $0.06. The company had revenue of $10.37 billion during the quarter, compared to the consensus estimate of $10.33 billion. QUALCOMM had a net margin of 26.77% and a return on equity of 40.35%. QUALCOMM's revenue for the quarter was up 10.4% on a year-over-year basis. During the same period last year, the firm earned $2.33 EPS. On average, sell-side analysts expect that QUALCOMM will post 9.39 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Akash J. Palkhiwala sold 3,333 shares of the company's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $161.28, for a total value of $537,546.24. Following the completion of the transaction, the chief financial officer directly owned 46,446 shares of the company's stock, valued at $7,490,810.88. This represents a 6.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, major shareholder Inc/De Qualcomm sold 412,500 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The shares were sold at an average price of $16.00, for a total value of $6,600,000.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 424,099 shares of company stock valued at $8,324,591. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On QUALCOMM

Several institutional investors and hedge funds have recently bought and sold shares of the company. Eagle Strategies LLC lifted its position in shares of QUALCOMM by 4.3% during the fourth quarter. Eagle Strategies LLC now owns 1,427 shares of the wireless technology company's stock worth $219,000 after acquiring an additional 59 shares in the last quarter. Clark Capital Management Group Inc. lifted its position in shares of QUALCOMM by 3.6% during the fourth quarter. Clark Capital Management Group Inc. now owns 1,717 shares of the wireless technology company's stock worth $264,000 after acquiring an additional 59 shares in the last quarter. Avion Wealth lifted its position in shares of QUALCOMM by 16.7% during the second quarter. Avion Wealth now owns 441 shares of the wireless technology company's stock worth $70,000 after acquiring an additional 63 shares in the last quarter. Insight Advisors LLC PA lifted its position in shares of QUALCOMM by 1.8% during the second quarter. Insight Advisors LLC PA now owns 3,488 shares of the wireless technology company's stock worth $556,000 after acquiring an additional 63 shares in the last quarter. Finally, Capital Advantage Inc. lifted its position in shares of QUALCOMM by 2.8% during the second quarter. Capital Advantage Inc. now owns 2,353 shares of the wireless technology company's stock worth $375,000 after acquiring an additional 64 shares in the last quarter. 74.35% of the stock is owned by institutional investors.

QUALCOMM Company Profile

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.