Qualcomm (NASDAQ:QCOM) Shares Down 1.1% – Here’s Why

Shares of Qualcomm Incorporated (NASDAQ:QCOM) traded down 1.1% during mid-day trading on Thursday. The company traded as low as $181.77 and last traded at $182.09. 9,268,012 shares traded hands during trading, a decline of 40% from the average daily volume of 15,545,396 shares. The stock had previously closed at $184.04.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Apple patent renewal supports licensing stability. Qualcomm renewed a global patent-license agreement with Apple effective April 2027. Although Apple has reduced its use of Qualcomm chips, the agreement reinforces the value of Qualcomm’s intellectual-property portfolio and provides visibility for its high-margin licensing business. QUALCOMM Renewed a Global Patent License Effective April 2027
• Positive Sentiment: Investors see potential in AI, automotive and data-center growth. Qualcomm is attempting to offset shrinking Apple chip sales with automotive, data-center and AI-related products. Higher 2027 sales estimates cited in recent analysis suggest some investors still see meaningful upside if those businesses scale successfully. Qualcomm Stock Fell 7% in a Day as Its AI and Apple Rally Cooled
• Neutral Sentiment: Recent momentum has improved, but valuation leaves less room for disappointment. Qualcomm is up substantially over six months while trading below its one-year high. At roughly 21 times earnings—around the broader market’s valuation—investors appear to be pricing in continued growth beyond smartphones, prompting debate over whether to wait for clearer evidence. What Is The Case For Waiting On Qualcomm Stock?
• Negative Sentiment: Analyst skepticism and AI execution concerns are weighing on sentiment. A Seeking Alpha contributor downgraded Qualcomm for the first time in more than a year, while other commentary questioned whether its AI strategy can overcome the loss of Apple chip business and competition in emerging markets. Qualcomm: Downgrading For The First Time In Over A Year
• Negative Sentiment: Insider selling added pressure. A report attributed part of the recent decline to insider selling, reinforcing concerns among investors already reassessing Qualcomm’s rally and growth outlook. Qualcomm Stock Falls on Insider Selling

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a report on Monday, September 21st. Bank of America upped their price objective on shares of Qualcomm from $165.00 to $195.00 and gave the stock an “underperform” rating in a report on Tuesday, June 23rd. Guggenheim set a $200.00 target price on shares of Qualcomm in a research report on Monday, June 22nd. Piper Sandler started coverage on shares of Qualcomm in a research report on Wednesday, September 9th. They set a “neutral” rating and a $190.00 price target on the stock. Finally, UBS Group decreased their price objective on shares of Qualcomm from $190.00 to $170.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $204.10.

Qualcomm Stock Performance

The firm’s 50-day moving average price is $170.90 and its two-hundred day moving average price is $175.63. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The firm has a market capitalization of $191.24 billion, a PE ratio of 21.08, a P/E/G ratio of 3.84 and a beta of 1.68.

Qualcomm (NASDAQ:QCOM) last announced its earnings results 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). The firm had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. Qualcomm’s revenue for the quarter was down 4.0% compared to the same quarter last year. During the same period last year, the firm earned $2.77 earnings per share. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, research analysts predict that Qualcomm Incorporated will post 7.74 earnings per share for the current fiscal year.

Qualcomm Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were given a $0.92 dividend. The ex-dividend date was Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a yield of 2.0%. Qualcomm’s dividend payout ratio is presently 42.59%.

Insider Transactions at Qualcomm

In related news, EVP Akash Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction on Friday, September 11th. The stock was sold at an average price of $182.85, for a total transaction of $457,125.00. Following the completion of the sale, the executive vice president owned 18,184 shares of the company’s stock, valued at approximately $3,324,944.40. This trade represents a 12.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather Ace sold 3,200 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $147.04, for a total value of $470,528.00. Following the completion of the transaction, the executive vice president owned 36,535 shares in the company, valued at $5,372,106.40. This trade represents a 8.05% 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. Insiders have sold a total of 31,533 shares of company stock valued at $5,874,969 in the last three months. 0.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Qualcomm

Hedge funds have recently added to or reduced their stakes in the company. Greenwich Wealth Management LLC acquired a new stake in shares of Qualcomm in the second quarter worth $242,000. QRG Capital Management Inc. raised its holdings in Qualcomm by 12.7% in the 2nd quarter. QRG Capital Management Inc. now owns 204,726 shares of the wireless technology company’s stock worth $37,831,000 after acquiring an additional 23,009 shares during the period. Envestnet Portfolio Solutions Inc. lifted its position in Qualcomm by 8.4% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 48,184 shares of the wireless technology company’s stock worth $8,904,000 after acquiring an additional 3,746 shares during the last quarter. State Street Corp lifted its position in Qualcomm by 1.3% during the 2nd quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company’s stock worth $9,750,123,000 after acquiring an additional 671,537 shares during the last quarter. Finally, Security National Bank of Sioux City Iowa IA boosted its holdings in Qualcomm by 35.9% during the second quarter. Security National Bank of Sioux City Iowa IA now owns 26,140 shares of the wireless technology company’s stock valued at $4,830,000 after acquiring an additional 6,900 shares during the period. Institutional investors and hedge funds own 74.35% of the company’s stock.

Qualcomm Company Profile

Qualcomm Incorporated (NASDAQ: QCOM) is a technology company headquartered in San Diego, California, that develops wireless communications technologies, semiconductors and related software. Its products support mobile devices, connected computing, automotive systems, industrial equipment and consumer electronics.

Qualcomm’s semiconductor business operates primarily through its Qualcomm CDMA Technologies segment. Its offerings include Snapdragon platforms and systems-on-chip, cellular modems, radio-frequency components, connectivity products, and processors for smartphones, personal computers, extended-reality devices, vehicles and the Internet of Things.