Qualcomm (NASDAQ:QCOM) Shares Up 2.1% – Still a Buy?

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price shot up 2.1% during mid-day trading on Monday. The company traded as high as $181.00 and last traded at $179.60. Approximately 9,583,072 shares changed hands during trading, a decline of 36% from the average session volume of 15,077,380 shares. The stock had previously closed at $175.91.

Qualcomm News Summary

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s automotive business reportedly reached record revenue, including a 61% surge, while the company is pursuing AI opportunities through custom silicon deals with hyperscalers. This supports the investment case that Qualcomm is becoming less dependent on smartphones. Qualcomm Automotive Revenue Hits Record
• Positive Sentiment: Qualcomm and defense contractor Anduril are launching BlueChip, a line of U.S.-made laptops for government, military and first-responder customers. The initiative could open a new commercial channel for Qualcomm processors and strengthen its position in secure, domestically sourced computing. Anduril and Qualcomm Partner on U.S.-Made Laptops
• Positive Sentiment: Analysts and market commentary continue to highlight Qualcomm’s potential AI upside, arguing that investors may still value the company primarily as a handset chipmaker despite growth in automotive and data-center-related custom silicon. Qualcomm’s AI Opportunity
• Neutral Sentiment: Qualcomm recently reaffirmed its quarterly dividend at $0.92 per share, providing ongoing shareholder-return support. Bernstein nevertheless maintained a Hold rating, indicating that near-term upside may already reflect some of the company’s diversification potential. Qualcomm Dividend Reaffirmed
• Negative Sentiment: Weak guidance from NXP Semiconductors has revived concerns about automotive-chip demand and is weighing on related chip stocks, including Qualcomm. Auto Chip Worries Resurface
• Negative Sentiment: Qualcomm’s upcoming fourth-quarter earnings are expected to decline, and Zacks says the company may lack the combination of earnings momentum and estimate revisions typically associated with a likely beat. Qualcomm Q4 Earnings Preview

Wall Street Analyst Weigh In

Several equities research analysts have commented on QCOM shares. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a report on Monday, September 21st. TD Cowen raised their price target on Qualcomm from $175.00 to $200.00 and gave the company a “buy” rating in a report on Monday, October 19th. KeyCorp restated a “sector weight” rating on shares of Qualcomm in a report on Wednesday, September 9th. Susquehanna lifted their price target on Qualcomm from $160.00 to $185.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 21st. Finally, Wells Fargo & Company dropped their price target on shares of Qualcomm from $265.00 to $170.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $205.83.

Qualcomm Trading Down 0.7%

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 firm has a market cap of $195.38 billion, a PE ratio of 21.18, a price-to-earnings-growth ratio of 3.96 and a beta of 1.65. The stock has a 50-day simple moving average of $176.83 and a two-hundred day simple moving average of $169.42.

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 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 company had revenue of $9.95 billion for the quarter, compared to analysts’ expectations of $9.69 billion. During the same period in the previous year, the business earned $2.77 EPS. The business’s revenue was down 4.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that Qualcomm Incorporated will post 7.71 EPS for the current year.

Qualcomm Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be given a dividend of $0.92 per share. The ex-dividend date is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a yield of 2.0%. Qualcomm’s dividend payout ratio is 42.59%.

Insider Buying and Selling

In other news, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction 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 transaction, the executive vice president directly owned 36,535 shares of the company’s stock, valued at $5,372,106.40. This represents a 8.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $175.06, for a total value of $437,650.00. Following the transaction, the executive vice president directly owned 20,799 shares in the company, valued at $3,641,072.94. The trade was a 10.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 33,458 shares of company stock valued at $6,198,144 in the last ninety days. Corporate insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

Several large investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in Qualcomm in the second quarter valued at about $17,583,115,000. State Street Corp grew its stake in shares of Qualcomm by 1.3% during the 2nd quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company’s stock valued at $9,750,123,000 after purchasing an additional 671,537 shares during the period. Van ECK Associates Corp grew its stake in shares of Qualcomm by 22.7% during the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock valued at $3,178,872,000 after purchasing an additional 3,179,720 shares during the period. Amundi grew its stake in shares of Qualcomm by 94.1% during the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company’s stock valued at $1,884,071,000 after purchasing an additional 4,942,908 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Qualcomm during the 2nd quarter valued at about $1,523,930,000. Institutional investors own 74.35% of the company’s stock.

About Qualcomm

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.