Qualcomm (NASDAQ:QCOM) Stock Price Down 1.6% – Here’s What Happened

Qualcomm Incorporated (NASDAQ:QCOM) shares traded down 1.6% during mid-day trading on Monday. The company traded as low as $161.46 and last traded at $162.08. 10,917,731 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 15,048,443 shares. The stock had previously closed at $164.79.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms for Starlink Mobile’s U.S. terrestrial 5G network under a multiyear agreement. Qualcomm called it its largest 5G initiative to date, creating an opportunity to expand beyond phones. SpaceX deal
• Positive Sentiment: Fiscal Q4 adjusted EPS of $2.17 slightly exceeded the $2.16 consensus, while revenue also topped estimates. Q4 results
• Negative Sentiment: Investors reacted to muted earnings guidance, with a memory shortage weighing on smartphone sales. Handset revenue dropped 26%, dragging down overall results; total revenue fell about 8% year over year and EPS declined from $3.00 a year earlier. Earnings outlook and handset weakness
• Negative Sentiment: Automotive revenue grew 90%, but the business remains too small to offset the handset slowdown, leaving near-term growth and profitability under pressure. Phone chip sales analysis

Analysts Set New Price Targets

QCOM has been the subject of a number of research reports. Barclays restated an “underweight” rating on shares of Qualcomm in a report on Wednesday, September 9th. Royal Bank Of Canada raised their target price on shares of Qualcomm from $160.00 to $180.00 and gave the stock a “sector perform” rating in a research report on Wednesday, September 9th. Zacks Research cut Qualcomm from a “hold” rating to a “strong sell” rating in a research report on Tuesday, September 15th. Cantor Fitzgerald cut their price objective 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. Finally, HSBC reissued a “hold” rating on shares of Qualcomm in a report on Wednesday, July 15th. Three research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $205.48.

Qualcomm Stock Performance

The company’s fifty day moving average price is $178.23 and its two-hundred day moving average price is $169.48. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02. The firm has a market capitalization of $184.94 billion, a PE ratio of 18.60, a price-to-earnings-growth ratio of 3.70 and a beta of 1.70.

Qualcomm (NASDAQ:QCOM) last released its earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.16 by $0.01. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The firm had revenue of $10.44 billion during the quarter, compared to the consensus estimate of $10.12 billion. During the same period in the previous year, the firm earned $3.00 earnings per share. Qualcomm’s revenue was down 8.4% compared to the same quarter last year. As a group, equities analysts expect that Qualcomm Incorporated will post 7.71 earnings per share for the current year.

Qualcomm Dividend Announcement

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 issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s dividend payout ratio (DPR) is 42.59%.

Insider Activity at Qualcomm

In related news, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction on Friday, September 25th. The stock was sold at an average price of $200.00, for a total value of $2,000,000.00. Following the transaction, the chief executive officer owned 177,568 shares in the company, valued at approximately $35,513,600. This trade represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the business’s stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $175.06, for a total value of $437,650.00. Following the sale, the executive vice president directly owned 20,799 shares of the company’s stock, valued at approximately $3,641,072.94. This trade represents a 10.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 30,258 shares of company stock valued at $5,727,616 over the last quarter. 0.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Qualcomm

A number of institutional investors have recently modified their holdings of QCOM. ABS Investment Management LLC acquired a new position in shares of Qualcomm during the 2nd quarter valued at $34,000. ABS Direct Equity Fund LLC purchased a new stake in Qualcomm during the 2nd quarter worth $34,000. Mizuho Securities Co. Ltd. purchased a new stake in Qualcomm during the 3rd quarter worth $35,000. Your Advocates Ltd. LLP acquired a new stake in Qualcomm in the 1st quarter valued at $26,000. Finally, Team Financial Group LLC acquired a new stake in Qualcomm in the 3rd quarter valued at $38,000. Hedge funds and other institutional investors own 74.35% of the company’s stock.

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.