Qualcomm (NASDAQ:QCOM) Stock Falls 11.1% – Time to Sell?

Shares of Qualcomm Incorporated (NASDAQ:QCOM) were down 11.1% during trading on Friday. The company traded as low as $161.72 and last traded at $164.79. 23,945,238 shares changed hands during mid-day trading, an increase of 59% from the average session volume of 15,066,937 shares. The stock had previously closed at $185.41.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Robert W. Baird set a $400.00 price objective on shares of Qualcomm in a report on Thursday, July 30th. Cantor Fitzgerald decreased their target price on shares of Qualcomm from $200.00 to $165.00 and set a “neutral” rating for the company in a research report on Monday, July 27th. Benchmark dropped their price target on shares of Qualcomm from $300.00 to $270.00 and set a “buy” rating on the stock in a research note on Monday, July 27th. Piper Sandler began coverage on shares of Qualcomm in a research note on Wednesday, September 9th. They issued a “neutral” rating and a $190.00 price target on the stock. Finally, Citigroup cut their price target on Qualcomm from $198.00 to $175.00 and set a “neutral” rating on the stock in a report on Wednesday, July 29th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $205.83.

Qualcomm Price Performance

The business has a fifty day moving average price of $177.83 and a 200 day moving average price of $169.44. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28. The company has a market capitalization of $175.97 billion, a price-to-earnings ratio of 19.07, a price-to-earnings-growth ratio of 3.71 and a beta of 1.65.

Qualcomm (NASDAQ:QCOM) last posted 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). The company had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The business’s revenue for the quarter was down 4.0% compared to the same quarter last year. During the same period in the previous year, the company earned $2.77 EPS. On average, research analysts expect that Qualcomm Incorporated will post 7.71 earnings per share for the current fiscal year.

Qualcomm Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, December 3rd will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s payout ratio is 42.59%.

Insider Activity at Qualcomm

In other news, EVP Akash Palkhiwala sold 2,500 shares of the company’s stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $175.06, for a total value of $437,650.00. Following the completion of the sale, the executive vice president directly owned 20,799 shares of the company’s stock, valued at approximately $3,641,072.94. This represents a 10.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather Ace sold 3,200 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $147.04, for a total transaction of $470,528.00. Following the completion of the transaction, the executive vice president owned 36,535 shares of the company’s stock, valued at $5,372,106.40. This trade represents a 8.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 33,458 shares of company stock worth $6,198,144 in the last three months. Insiders own 0.05% of the company’s stock.

Institutional Investors Weigh In On Qualcomm

A number of institutional investors have recently added to or reduced their stakes in the company. JFS Wealth Advisors LLC boosted its stake in Qualcomm by 3.4% during the 2nd quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company’s stock valued at $295,000 after purchasing an additional 53 shares in the last quarter. Canopy Partners LLC raised its stake in shares of Qualcomm by 1.4% in the 3rd quarter. Canopy Partners LLC now owns 4,148 shares of the wireless technology company’s stock worth $763,000 after buying an additional 56 shares in the last quarter. Wall Street Financial Group Inc. raised its stake in shares of Qualcomm by 1.9% in the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company’s stock worth $564,000 after buying an additional 57 shares in the last quarter. Sunbeam Capital Management LLC raised its stake in shares of Qualcomm by 3.7% in the 2nd quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company’s stock worth $303,000 after buying an additional 58 shares in the last quarter. Finally, LaFleur & Godfrey LLC lifted its holdings in shares of Qualcomm by 3.6% in the third quarter. LaFleur & Godfrey LLC now owns 1,656 shares of the wireless technology company’s stock valued at $305,000 after buying an additional 58 shares during the period. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Qualcomm Company Profile

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.