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

Qualcomm (NASDAQ:QCOM) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other analysts also recently weighed in on QCOM. Dbs Bank raised shares of Qualcomm to a “moderate buy” rating in a research report on Tuesday, July 7th. Benchmark decreased 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. Citigroup lowered their price objective on shares of Qualcomm from $198.00 to $175.00 and set a “neutral” rating for the company in a research note on Wednesday, July 29th. Wells Fargo & Company dropped their price objective on shares of Qualcomm from $265.00 to $170.00 and set an “equal weight” rating on the stock in a report on Thursday, July 30th. Finally, UBS Group cut their target price on Qualcomm from $190.00 to $170.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Qualcomm presently has a consensus rating of “Hold” and an average target price of $204.10.

Qualcomm Trading Down 1.6%

Qualcomm stock opened at $184.84 on Tuesday. The stock has a 50-day moving average of $168.39 and a two-hundred day moving average of $171.86. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02. Qualcomm has a one year low of $121.99 and a one year high of $259.92. The stock has a market cap of $194.12 billion, a PE ratio of 21.39, a price-to-earnings-growth ratio of 3.91 and a beta of 1.68.

Qualcomm (NASDAQ:QCOM) last issued its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.02). Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.The business had revenue of $9.95 billion for the quarter, compared to analysts’ expectations of $9.69 billion. During the same quarter in the previous year, the firm posted $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. On average, research analysts anticipate that Qualcomm will post 7.74 EPS for the current fiscal year.

Insider Activity at Qualcomm

In other Qualcomm news, CAO Patricia Grech sold 625 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $162.85, for a total value of $101,781.25. Following the sale, the chief accounting officer directly owned 208 shares of the company’s stock, valued at approximately $33,872.80. This represents a 75.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather Ace sold 3,200 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $147.04, for a total value of $470,528.00. Following the sale, the executive vice president directly owned 36,535 shares in the company, valued at $5,372,106.40. This represents a 8.05% 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 sold 11,533 shares of company stock worth $1,924,969 over the last three months. Company insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted its position in Qualcomm by 17,000.0% in 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. ABS Investment Management LLC purchased a new position in shares of Qualcomm during the 2nd quarter valued at approximately $34,000. ABS Direct Equity Fund LLC acquired a new position in shares of Qualcomm in the 2nd quarter valued at $34,000. Commonwealth Retirement Investments LLC acquired a new position in shares of Qualcomm in the 4th quarter valued at $32,000. Finally, Your Advocates Ltd. LLP purchased a new stake in Qualcomm during the first quarter worth $26,000. 74.35% of the stock is owned by institutional investors and hedge funds.

Qualcomm News Roundup

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?

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.