Qualcomm (NASDAQ:QCOM) Stock Price Down 1.6% Following Analyst Downgrade

Qualcomm Incorporated (NASDAQ:QCOM) traded down 1.6% during trading on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $183.37 and last traded at $184.84. 9,506,704 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 15,534,435 shares. The stock had previously closed at $187.80.

Other equities analysts have also issued reports about the company. HSBC reaffirmed a “hold” rating on shares of Qualcomm in a research note on Wednesday, July 15th. Susquehanna dropped their price target on shares of Qualcomm from $190.00 to $160.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Qualcomm in a research note on Wednesday, June 24th. TD Cowen decreased their price objective on shares of Qualcomm from $225.00 to $175.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Finally, KeyCorp reissued a “sector weight” rating on shares of Qualcomm in a research note on Wednesday, September 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Qualcomm presently has an average rating of “Hold” and an average price target of $204.10.

Insiders Place Their Bets

In other news, EVP Heather Ace sold 3,200 shares of the firm’s 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 sale, 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 position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Grech sold 625 shares of Qualcomm stock in a transaction on Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the completion of the sale, the chief accounting officer owned 208 shares of the company’s stock, valued at $33,872.80. This represents a 75.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 11,533 shares of company stock worth $1,924,969. Corporate insiders own 0.05% of the company’s stock.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s chief executive, Cristiano Amon, is reportedly expected to attend a September 24 meeting involving U.S. and Chinese officials, OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang. Discussions could include AI standards, safety and chip access, raising Qualcomm’s visibility in strategic AI policy discussions. Trump-Xi Dinner Next Week Brings AI Titans To The Table
• Positive Sentiment: Qualcomm has benefited from the chip-sector rally and has gained substantially over the past month. Investors are also considering growth in AI data centers, automotive chips and other non-handset markets as potential catalysts that could reduce dependence on smartphones. Qualcomm Just Rallied 18% in a Month Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off
• Neutral Sentiment: Analyst sentiment remains mixed. Qualcomm has received a consensus “Hold” rating, while one Zacks Research update cut its view from “Hold” to “Strong Sell.” This suggests the recent rally has not produced broad confidence in further upside. Qualcomm Receives Consensus Rating of Hold
• Negative Sentiment: Analysts warn that rising semiconductor costs, weaker handset demand and an unfavorable product mix could pressure margins. Apple’s shift toward in-house modem technology also threatens an important source of Qualcomm revenue. Qualcomm Faces Margin Pressure From Rising Costs
• Negative Sentiment: A separate analysis argues Qualcomm’s AI pivot faces execution and competitive risks, while another assessment says the stock appears fairly valued after its large run. These concerns may encourage profit-taking despite the company’s longer-term AI potential. Qualcomm’s AI Pivot Has a Problem Qualcomm Stock Looks Fairly Priced

Institutional Investors Weigh In On Qualcomm

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in Qualcomm in the second quarter valued at $17,583,115,000. Geode Capital Management LLC increased its holdings in shares of Qualcomm by 12.5% in the 4th 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 acquiring an additional 3,221,924 shares during the last quarter. Van ECK Associates Corp raised its position in shares of Qualcomm by 22.7% during the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock worth $3,178,872,000 after acquiring an additional 3,179,720 shares in the last quarter. Norges Bank purchased a new stake in Qualcomm during the fourth quarter worth approximately $2,591,056,000. Finally, Invesco Ltd. lifted its stake in Qualcomm by 28.1% during the fourth quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company’s stock worth $2,163,030,000 after purchasing an additional 2,771,490 shares during the last quarter. Institutional investors and hedge funds own 74.35% of the company’s stock.

Qualcomm Price Performance

The company’s 50 day simple moving average is $168.34 and its 200 day simple moving average is $172.19. 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 $198.70 billion, a PE ratio of 21.88, a price-to-earnings-growth ratio of 3.85 and a beta of 1.68.

Qualcomm (NASDAQ:QCOM) last announced its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing analysts’ consensus estimates 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 analysts’ expectations of $9.69 billion. During the same period last year, the firm earned $2.77 earnings per share. Qualcomm’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 predict that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio is presently 42.59%.

About Qualcomm

Qualcomm Incorporated (NASDAQ: QCOM) is a technology company that develops wireless communications technologies, semiconductors and related intellectual property. Headquartered in San Diego, California, the company serves customers and partners worldwide across the mobile, automotive, consumer electronics and industrial markets.

Through its Qualcomm CDMA Technologies (QCT) business, Qualcomm designs and supplies integrated circuits, system software and hardware platforms. Its products include Snapdragon mobile platforms, 5G and other wireless modems, radio-frequency components, connectivity solutions, processors and artificial intelligence technologies.