Qualcomm (NASDAQ:QCOM) Shares Down 2.2% – Should You Sell?

Qualcomm Incorporated (NASDAQ:QCOM)’s share price fell 2.2% during mid-day trading on Monday. The stock traded as low as $180.30 and last traded at $180.79. Approximately 9,764,068 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 15,515,269 shares. The stock had previously closed at $184.87.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on QCOM. HSBC reiterated a “hold” rating on shares of Qualcomm in a research report on Wednesday, July 15th. Dbs Bank raised shares of Qualcomm to a “moderate buy” rating in a research report on Tuesday, July 7th. Cantor Fitzgerald cut their price target on shares of Qualcomm from $200.00 to $165.00 and set a “neutral” rating for the company in a research note on Monday, July 27th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Qualcomm in a report on Wednesday, September 9th. Finally, Morgan Stanley lowered their price objective on Qualcomm from $231.00 to $220.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $204.10.

Qualcomm Price Performance

The company has a market cap of $193.31 billion, a price-to-earnings ratio of 20.95, a P/E/G ratio of 4.07 and a beta of 1.65. 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 company’s 50 day moving average price is $172.06 and its 200 day moving average price is $177.09.

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 the consensus estimate of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The company’s revenue for the quarter was down 4.0% on a year-over-year basis. During the same period in the prior year, the business earned $2.77 earnings per share. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, equities research analysts predict that Qualcomm Incorporated will post 7.74 earnings per share for the current fiscal year.

Qualcomm Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were issued a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Thursday, September 3rd. Qualcomm’s payout ratio is presently 42.59%.

Insiders Place Their Bets

In related news, EVP Heather Ace sold 3,200 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $147.04, for a total transaction 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano Amon sold 10,000 shares of the firm’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $200.00, for a total value of $2,000,000.00. Following the sale, the chief executive officer directly owned 177,568 shares of the company’s stock, valued at $35,513,600. This represents a 5.33% decrease in their ownership of the stock. 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 have sold 31,631 shares of company stock valued at $5,893,251 in the last 90 days. Insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd raised its stake in shares of Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after acquiring an additional 170 shares during the last quarter. ABS Investment Management LLC bought a new stake in shares of Qualcomm during the second quarter valued at approximately $34,000. ABS Direct Equity Fund LLC acquired a new stake in shares of Qualcomm in the second quarter valued at approximately $34,000. Commonwealth Retirement Investments LLC acquired a new stake in shares of Qualcomm in the fourth quarter valued at approximately $32,000. Finally, Your Advocates Ltd. LLP bought a new position in Qualcomm in the 1st quarter worth approximately $26,000. 74.35% of the stock is owned by institutional investors.

Qualcomm Company Profile

Qualcomm Incorporated (NASDAQ: QCOM) is a technology company headquartered in San Diego, California, that develops wireless communications technologies, semiconductors and related software. Its products support mobile devices, connected computing, automotive systems, industrial equipment and consumer electronics.

Qualcomm’s semiconductor business operates primarily through its Qualcomm CDMA Technologies segment. Its offerings include Snapdragon platforms and systems-on-chip, cellular modems, radio-frequency components, connectivity products, and processors for smartphones, personal computers, extended-reality devices, vehicles and the Internet of Things.