Qualcomm (NASDAQ:QCOM) Trading Down 2.2% – Should You Sell?

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price fell 2.2% on Monday . The stock traded as low as $161.45 and last traded at $162.18. Approximately 8,938,529 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 16,076,278 shares. The stock had previously closed at $165.79.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of Qualcomm from $160.00 to $265.00 and gave the stock a “neutral” rating in a research report on Friday, June 5th. Royal Bank Of Canada reduced their price objective on Qualcomm from $250.00 to $160.00 and set a “sector perform” rating for the company in a research report on Thursday, July 30th. Monness Crespi & Hardt raised Qualcomm to a “buy” rating in a report on Thursday, June 25th. Raymond James Financial began coverage on Qualcomm in a research report on Thursday, June 25th. They issued a “strong-buy” rating on the stock. Finally, Dbs Bank raised Qualcomm to a “moderate buy” rating in a research note on Tuesday, July 7th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twenty have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Qualcomm has a consensus rating of “Hold” and a consensus target price of $203.63.

Qualcomm Price Performance

The business’s 50-day simple moving average is $182.72 and its 200 day simple moving average is $167.82. The company has a market capitalization of $170.33 billion, a P/E ratio of 18.77, a P/E/G ratio of 15.25 and a beta of 1.65. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46.

Qualcomm (NASDAQ:QCOM) last posted its quarterly earnings data on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.23 by ($0.02). Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The company had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.69 billion. During the same quarter last year, the business earned $2.77 earnings per share. The company’s revenue was down 4.0% on a year-over-year basis. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, sell-side analysts anticipate that Qualcomm Incorporated will post 7.76 EPS for the current year.

Qualcomm Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be paid a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is presently 42.59%.

Insider Activity

In related news, CAO Patricia Y. Grech sold 829 shares of the firm’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $201.77, for a total transaction of $167,267.33. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $147.04, for a total value of $470,528.00. Following the transaction, the executive vice president directly owned 36,535 shares in the company, valued at approximately $5,372,106.40. The trade was a 8.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 11,529 shares of company stock worth $1,991,345. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Qualcomm

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Ausdal Financial Partners Inc. boosted its position in shares of Qualcomm by 2.9% during the 2nd quarter. Ausdal Financial Partners Inc. now owns 10,293 shares of the wireless technology company’s stock valued at $1,902,000 after purchasing an additional 293 shares in the last quarter. Bluefin Capital Management LLC bought a new stake in shares of Qualcomm in the 2nd quarter worth approximately $532,000. Freestone Grove Partners LP lifted its stake in Qualcomm by 495.5% during the second quarter. Freestone Grove Partners LP now owns 66,694 shares of the wireless technology company’s stock valued at $12,324,000 after purchasing an additional 55,495 shares during the last quarter. Caisse de depot et placement du Quebec lifted its stake in Qualcomm by 170.6% during the second quarter. Caisse de depot et placement du Quebec now owns 697,995 shares of the wireless technology company’s stock valued at $128,982,000 after purchasing an additional 440,062 shares during the last quarter. Finally, Invst LLC bought a new stake in Qualcomm during the second quarter worth approximately $217,000. 74.35% of the stock is owned by institutional investors and hedge funds.

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.