Zacks Research Downgrades Qualcomm (NASDAQ:QCOM) to Strong Sell

Qualcomm (NASDAQ:QCOM) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday, Zacks reports.

Several other analysts also recently commented on QCOM. Benchmark decreased their target price on shares of Qualcomm from $300.00 to $270.00 and set a “buy” rating for the company in a research report on Monday, July 27th. Evercore set a $159.00 price target on shares of Qualcomm in a report on Thursday, July 30th. Lake Street Capital lowered shares of Qualcomm to a “hold” rating in a research note on Thursday, June 25th. Morgan Stanley decreased their price objective on shares of Qualcomm from $231.00 to $220.00 and set an “equal weight” rating for the company in a report on Thursday, July 30th. Finally, Robert W. Baird set a $400.00 price objective on shares of Qualcomm in a report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $204.10.

Qualcomm Stock Performance

Shares of QCOM stock opened at $184.84 on Tuesday. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28. Qualcomm has a fifty-two week low of $121.99 and a fifty-two week high of $259.92. The stock’s 50-day moving average is $168.39 and its two-hundred day moving average is $171.86. The firm has a market cap of $194.12 billion, a P/E ratio of 21.39, a PEG ratio of 3.91 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 (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%. The firm’s quarterly revenue was down 4.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.77 earnings per share. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. Analysts predict that Qualcomm will post 7.74 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Heather Ace sold 3,200 shares of the business’s stock in a transaction on 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 sale, 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash Palkhiwala sold 2,500 shares of the company’s 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 sale, the executive vice president directly owned 18,184 shares of the company’s stock, valued at approximately $3,324,944.40. This represents a 12.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 11,533 shares of company stock valued at $1,924,969 over the last 90 days. 0.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Qualcomm

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in Qualcomm during the second quarter worth $17,583,115,000. Norges Bank bought a new stake in Qualcomm in the 4th quarter valued at $2,591,056,000. Bank of New York Mellon Corp acquired a new stake in Qualcomm in the 2nd quarter worth $1,523,930,000. Deutsche Bank AG bought a new position in shares of Qualcomm during the 2nd quarter worth about $1,178,349,000. Finally, Amundi raised its position in shares of Qualcomm by 94.1% during the second quarter. Amundi now owns 10,195,741 shares of the wireless technology company’s stock valued at $1,884,071,000 after buying an additional 4,942,908 shares during the last quarter. 74.35% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s multi-generation collaboration with Amazon to develop customized AI data-center chips and optical-connectivity solutions is strengthening the company’s diversification story. Amazon may also receive warrants to purchase up to $4 billion of Qualcomm stock, linking the two companies’ interests. Why Qualcomm Is Up After New Amazon AI Chip Deal
• Positive Sentiment: StoneX reiterated a Buy rating and a $270 price target, citing growing exposure to hyperscale customers and an improving data-center outlook. Qualcomm’s automotive business and AI infrastructure efforts could reduce reliance on smartphones. Qualcomm Stock Rises as AWS Deal Boosts Data Center Outlook
• Positive Sentiment: Investors are increasingly viewing Qualcomm as a potential AI data-center and networking supplier, following its Amazon relationship and a separate Compute Fabric partnership with Cornelis Networks. This has helped drive a substantial rally since August. QCOM Stock Climbs as AI Data Center Push Gains Momentum
• Neutral Sentiment: Qualcomm’s quarterly dividend is scheduled for payment on September 24 to shareholders of record as of September 3. The payout may support income-oriented demand but is unlikely to materially change the near-term growth outlook. Qualcomm Dividend Payment
• Negative Sentiment: Some analysts argue the market has already priced in much of Qualcomm’s data-center opportunity, leaving less room for upside until the company demonstrates meaningful revenue and profit contribution. Qualcomm’s Datacenter Pivot Is Real, but the Market Already Knows This
• Negative Sentiment: Apple’s shift toward internally developed modem chips remains a major overhang for Qualcomm’s handset business and royalty revenue. Recent insider selling added a further short-term sentiment headwind. Should You Buy Qualcomm Stock for the Cash as Apple Leaves?

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.