Traders Buy Large Volume of Call Options on Qualcomm (NASDAQ:QCOM)

Qualcomm Incorporated (NASDAQ:QCOM) saw unusually large options trading on Friday. Investors purchased 140,153 call options on the stock. This represents an increase of 29% compared to the average daily volume of 108,956 call options.

Wall Street Analysts Forecast Growth

QCOM has been the subject of several recent research reports. Craig Hallum cut Qualcomm from a “buy” rating to a “hold” rating in a research report on Thursday, June 25th. TD Cowen lowered their price target on Qualcomm from $225.00 to $175.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Freedom Capital raised Qualcomm from a “hold” rating to a “strong-buy” rating in a report on Friday, August 7th. Morgan Stanley decreased their target price on shares of Qualcomm from $231.00 to $220.00 and set an “equal weight” rating for the company in a research note on Thursday, July 30th. Finally, Guggenheim set a $200.00 target price on shares of Qualcomm in a research note on Monday, June 22nd. 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 issued a Sell rating to the company. Based on data from MarketBeat.com, Qualcomm has an average rating of “Hold” and an average target price of $204.10.

Qualcomm Stock Performance

Qualcomm stock traded up $9.85 during trading hours on Friday, hitting $204.11. The company had a trading volume of 10,110,366 shares, compared to its average volume of 15,625,910. The firm has a 50-day moving average of $169.58 and a 200 day moving average of $174.09. 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 firm has a market cap of $214.36 billion, a PE ratio of 23.62, a PEG ratio of 4.13 and a beta of 1.68. Qualcomm has a one year low of $121.99 and a one year high of $259.92.

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 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 business had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.69 billion. During the same period in the previous year, the firm posted $2.77 EPS. The company’s revenue was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, sell-side analysts expect that Qualcomm will post 7.74 earnings per share for the current year.

Qualcomm Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 3rd were given a dividend of $0.92 per share. The ex-dividend date was Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 1.8%. Qualcomm’s dividend payout ratio (DPR) is currently 42.59%.

Insiders Place Their Bets

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the company’s stock in a transaction dated 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 transaction, the executive vice president directly owned 18,184 shares of the company’s stock, valued at $3,324,944.40. This represents a 12.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $147.04, for a total value of $470,528.00. Following the transaction, the executive vice president directly owned 36,535 shares of the company’s stock, valued at approximately $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. In the last three months, insiders sold 21,533 shares of company stock worth $3,874,969. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Qualcomm

A number of large investors have recently modified their holdings of QCOM. Your Advocates Ltd. LLP bought a new position in shares of Qualcomm in the first quarter worth about $26,000. Caitong International Asset Management Co. Ltd increased its position in Qualcomm by 17,000.0% during the 4th 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 in the last quarter. Commonwealth Retirement Investments LLC bought a new position in Qualcomm in the 4th quarter valued at approximately $32,000. ABS Investment Management LLC bought a new position in Qualcomm in the 2nd quarter valued at approximately $34,000. Finally, ABS Direct Equity Fund LLC acquired 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.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s renewed global patent-licensing agreement with Apple provides continued royalty revenue and signals that Apple remains willing to maintain a strategic relationship with the chipmaker. Buyers returned after initially viewing the announcement negatively. Qualcomm rallies as buyers reverse Apple renewal selloff
• Positive Sentiment: New Snapdragon 8 Elite Gen 6 smartphone processors emphasize on-device and agentic AI, supporting Qualcomm’s effort to expand beyond conventional smartphone modem sales and potentially improve premium-chip demand. Why Qualcomm is pushing AI from phones to cars and edge devices
• Positive Sentiment: Management is positioning automotive, robotics and other edge devices as major long-term growth markets. Qualcomm’s PickNik Robotics acquisition and automotive strategy could help build a broader physical-AI ecosystem and reduce reliance on handsets. Qualcomm CEO discusses automotive and physical AI strategy
• Neutral Sentiment: Qualcomm’s Snapdragon Sound Elite Gen 2 targets AI-enabled wearables with on-device processing, advanced audio and connectivity. The product broadens Qualcomm’s addressable market, although its effect on near-term earnings is not yet clear. Qualcomm targets the AI wearables market
• Negative Sentiment: Investors remain concerned that the Apple agreement’s terms are ambiguous and that Apple could eventually reduce its modem dependence on Qualcomm. CEO Cristiano Amon also sold 10,000 shares for $1.95 million under a pre-arranged Rule 10b5-1 plan; the transaction is a modest negative signal but does not necessarily indicate a change in his outlook. Qualcomm stock and the ambiguous Apple patent agreement

Qualcomm Company Profile

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.