Qualcomm (NASDAQ:QCOM) Shares Down 1.8% – Here’s Why

Shares of Qualcomm Incorporated (NASDAQ:QCOM) were down 1.8% during trading on Tuesday. The stock traded as low as $182.23 and last traded at $184.10. 9,943,539 shares were traded during trading, a decline of 36% from the average daily volume of 15,643,360 shares. The stock had previously closed at $187.48.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on QCOM. Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a “buy” rating for the company in a report on Monday, July 27th. Freedom Capital upgraded shares of Qualcomm from a “hold” rating to a “strong-buy” rating in a report on Friday, August 7th. Monness Crespi & Hardt raised shares of Qualcomm to a “buy” rating in a research report on Thursday, June 25th. Royal Bank Of Canada upped their target price on shares of Qualcomm from $160.00 to $180.00 and gave the stock a “sector perform” rating in a research note on Wednesday, September 9th. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of Qualcomm in a report on Wednesday, September 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $204.10.

Qualcomm Stock Performance

The stock’s 50 day moving average price is $170.90 and its 200 day moving average price is $175.63. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $192.90 billion, a price-to-earnings ratio of 21.33, a P/E/G ratio of 3.84 and a beta of 1.68.

Qualcomm (NASDAQ:QCOM) last announced 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). 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 in the previous year, the business earned $2.77 EPS. 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. Analysts expect that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Dividend Announcement

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

Insider Buying and Selling

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $182.85, for a total value 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 represents a 12.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the firm’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the completion of the transaction, the chief executive officer directly owned 177,568 shares of the company’s stock, valued at $35,513,600. This represents a 5.33% 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 31,533 shares of company stock worth $5,874,969 over the last 90 days. Company insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

A number of large investors have recently added to or reduced their stakes in the company. Your Advocates Ltd. LLP acquired a new stake in Qualcomm in the 1st quarter valued at about $26,000. Caitong International Asset Management Co. Ltd grew its holdings in Qualcomm by 17,000.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after purchasing an additional 170 shares during the period. Commonwealth Retirement Investments LLC acquired a new position in Qualcomm during the fourth quarter worth approximately $32,000. ABS Investment Management LLC acquired a new position in Qualcomm during the second quarter worth approximately $34,000. Finally, ABS Direct Equity Fund LLC bought a new stake in Qualcomm in the second quarter valued at approximately $34,000. Institutional investors and hedge funds own 74.35% of the company’s stock.

About Qualcomm

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.