Qualcomm (NASDAQ:QCOM) Stock Price Up 1.4% – What’s Next?

Shares of Qualcomm Incorporated (NASDAQ:QCOM) traded up 1.4% during mid-day trading on Tuesday. The company traded as high as $165.28 and last traded at $164.43. Approximately 11,343,455 shares changed hands during trading, a decline of 24% from the average session volume of 15,010,481 shares. The stock had previously closed at $162.08.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reported fiscal Q4 revenue of about $10.44 billion and adjusted EPS of $2.17, slightly exceeding consensus. Automotive revenue grew strongly, and management sees potential for substantial data-center revenue growth. Article: QCOM Q4 Earnings Beat Estimates on Robust Automotive Growth
• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for Starlink Mobile’s planned U.S. 5G network, a multiyear deal that offers diversification beyond smartphone chips. Article: SpaceX signs deal with Qualcomm to provide network technology for U.S. mobile service
• Neutral Sentiment: Analysts cut price targets following results, though views remain mixed: UBS and JPMorgan moved to neutral, while TD Cowen and Rosenblatt retained buy ratings. The revisions reflect increased caution but still imply potential upside from the cited share price.
• Negative Sentiment: The earnings beat was overshadowed by weaker profit guidance and falling handset-chip demand. Revenue declined year over year, with handset weakness—including reduced Apple-related revenue—contributing to the pressure; memory and component costs may also weigh on margins. Article: Qualcomm slumps as weak smartphone chip sales overshadow data-center momentum
• Negative Sentiment: Investors may also be wary that data-center expansion requires heavy investment and could dilute near-term margins, while automotive and other newer businesses have yet to offset handset weakness fully. Article: Qualcomm’s Data Center Investments Could Weigh on Near-Term Margins, RBC Says

Analyst Ratings Changes

A number of equities analysts have recently weighed in on QCOM shares. The Goldman Sachs Group reaffirmed a “neutral” rating on shares of Qualcomm in a research note on Thursday. Zacks Research cut shares of Qualcomm from a “hold” rating to a “strong sell” rating in a research note on Tuesday, September 15th. Citigroup decreased their price objective on shares of Qualcomm from $198.00 to $175.00 and set a “neutral” rating on the stock in a report on Wednesday, July 29th. TD Cowen lowered their target price on shares of Qualcomm from $200.00 to $185.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Barclays dropped their target price on shares of Qualcomm from $180.00 to $150.00 and set an “underweight” rating for the company in a report on Thursday. Three investment 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 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 target price of $197.55.

Qualcomm Stock Down 9.5%

The firm’s 50-day moving average price is $178.09 and its 200 day moving average price is $169.47. The firm has a market capitalization of $167.38 billion, a price-to-earnings ratio of 22.41, a price-to-earnings-growth ratio of 3.90 and a beta of 1.70. 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 (NASDAQ:QCOM) last issued its quarterly earnings data on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.16 by $0.01. Qualcomm had a return on equity of 31.91% and a net margin of 31.60%. 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 posted $3.00 EPS. The company’s quarterly revenue was down 8.4% compared to the same quarter last year. Sell-side analysts expect that Qualcomm Incorporated will post 7.17 EPS for the current year.

Qualcomm Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be given a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s dividend payout ratio is currently 42.59%.

Insider Buying and Selling

In related news, CAO Patricia Grech sold 208 shares of Qualcomm stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $170.00, for a total transaction of $35,360.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann Chaplin sold 1,827 shares of the business’s stock in a transaction dated Friday, October 16th. The shares were sold at an average price of $174.75, for a total transaction of $319,268.25. Following the completion of the transaction, the executive vice president directly owned 25,770 shares of the company’s stock, valued at $4,503,307.50. The trade was a 6.62% decrease in their position. 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 sold 30,258 shares of company stock worth $5,727,616 in the last ninety days. 0.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Qualcomm

Institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Qualcomm during the second quarter valued at $17,583,115,000. State Street Corp raised its position in Qualcomm by 1.3% during the second quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company’s stock valued at $9,750,123,000 after buying an additional 671,537 shares during the period. Van ECK Associates Corp lifted its stake in Qualcomm by 22.7% in the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock worth $3,178,872,000 after acquiring an additional 3,179,720 shares in the last quarter. Amundi lifted its stake in Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company’s stock worth $1,884,071,000 after acquiring an additional 4,942,908 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in Qualcomm in the 2nd quarter worth about $1,523,930,000. Institutional investors and hedge funds 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.