Qualcomm (NASDAQ:QCOM) Shares Up 1.4% – Here’s Why

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

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm Ventures joined a $700 million funding round for AI startup Hark, connecting the chipmaker with efforts to develop AI models, software and hardware for future consumer assistant devices. Qualcomm Joins Hark Funding Round
• Positive Sentiment: Qualcomm may be pursuing data-center opportunities with major hyperscalers, which could provide a future growth engine and help counter weakness in handsets; timing and scale remain uncertain. Qualcomm and AI Opportunities
• Neutral Sentiment: Wednesday’s earnings report is an immediate catalyst that could reset expectations. Investors will focus on the company’s outlook as well as its quarterly results. Qualcomm Gears Up for Earnings
• Negative Sentiment: Qualcomm shares have fallen sharply amid selling across semiconductor stocks, with one report noting they were more than 37% below their year-to-date high and had lost a key technical support level. Qualcomm Loses Support Ahead of Earnings
• Negative Sentiment: Analysts cite smartphone-market weakness, rising costs and margin pressure as near-term risks that could overshadow Qualcomm’s AI and data-center ambitions. Qualcomm’s Q4 Earnings Challenges

Wall Street Analyst Weigh In

A number of equities research analysts have commented on QCOM shares. Arete Research upgraded Qualcomm to a “strong-buy” rating in a research note on Friday, October 16th. Freedom Capital upgraded Qualcomm from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 7th. KeyCorp restated a “sector weight” rating on shares of Qualcomm in a report on Wednesday, September 9th. Morgan Stanley cut their price objective on shares of Qualcomm from $231.00 to $220.00 and set an “equal weight” rating on the stock in a report on Thursday, July 30th. Finally, Evercore set a $159.00 price objective on shares of Qualcomm in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $205.48.

Qualcomm Price Performance

The company has a market cap of $175.58 billion, a PE ratio of 19.03, a price-to-earnings-growth ratio of 4.12 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 stock has a 50 day moving average of $177.86 and a 200-day moving average of $169.42.

Qualcomm Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be issued a $0.92 dividend. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.2%. Qualcomm’s dividend payout ratio is currently 42.59%.

Insider Transactions at Qualcomm

In other news, CEO Cristiano Amon sold 10,000 shares of the firm’s stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $200.00, for a total value of $2,000,000.00. Following the completion of the transaction, the chief executive officer directly owned 177,568 shares in the company, valued at $35,513,600. This trade represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $182.85, for a total value of $457,125.00. Following the sale, the executive vice president directly owned 18,184 shares of the company’s stock, valued at $3,324,944.40. This trade represents a 12.09% 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. In the last ninety days, insiders have sold 30,258 shares of company stock valued at $5,727,616. 0.05% of the stock is owned by company insiders.

Institutional Trading of Qualcomm

Several large investors have recently made changes to their positions in the business. Parallel Advisors LLC grew its holdings in Qualcomm by 2.2% during the third quarter. Parallel Advisors LLC now owns 20,099 shares of the wireless technology company’s stock worth $3,699,000 after acquiring an additional 436 shares during the period. Guidance Capital Inc. lifted its holdings in Qualcomm by 0.9% in the third quarter. Guidance Capital Inc. now owns 8,180 shares of the wireless technology company’s stock valued at $1,505,000 after acquiring an additional 72 shares during the period. Tamar Securities LLC lifted its holdings in Qualcomm by 3.3% in the third quarter. Tamar Securities LLC now owns 153,879 shares of the wireless technology company’s stock valued at $28,320,000 after acquiring an additional 4,953 shares during the period. Asset Dedication LLC boosted its position in Qualcomm by 109.1% in the 3rd quarter. Asset Dedication LLC now owns 8,341 shares of the wireless technology company’s stock worth $1,535,000 after purchasing an additional 4,352 shares in the last quarter. Finally, Plancorp LLC boosted its position in Qualcomm by 12.4% in the 3rd quarter. Plancorp LLC now owns 10,805 shares of the wireless technology company’s stock worth $1,989,000 after purchasing an additional 1,188 shares in the last quarter. 74.35% of the stock is owned by hedge funds and other institutional investors.

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.