Qualcomm (NASDAQ:QCOM) Shares Up 5.5% – Here’s Why

Qualcomm Incorporated (NASDAQ:QCOM) traded up 5.5% during trading on Friday. The stock traded as high as $167.47 and last traded at $165.41. 19,462,588 shares changed hands during mid-day trading, an increase of 28% from the average daily volume of 15,176,346 shares. The stock had previously closed at $156.75.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s fiscal Q4 adjusted EPS of $2.17 and revenue of $10.44 billion edged past consensus estimates. Automotive growth and the company’s data-center ambitions offer potential to diversify beyond mobile chips. Article: Is Qualcomm Stock Worth Buying After Mixed Q4 Results?
• Positive Sentiment: Alphabet disclosed a $548 million Qualcomm stake, a potentially supportive signal of institutional interest. Article: Alphabet discloses $548 million worth of Qualcomm stake
• Positive Sentiment: The shares’ recovery also comes as markets claw back some of Thursday’s broad technology selloff, which was driven partly by concerns that post-election data-center regulation could slow AI investment. Article: OpenAI, Arm and Qualcomm executives react to post-midterm AI sell-off
• Neutral Sentiment: Qualcomm’s SpaceX agreement to supply technology for a planned terrestrial 5G network adds a potential new customer and use case, though its financial contribution is not yet clear. Article: SpaceX Makes Its Biggest Move Yet Against Telecom Giants With Qualcomm 5G Deal
• Negative Sentiment: Despite the earnings beat, revenue and EPS were down year over year, and investors remain concerned about soft guidance, falling handset demand, Apple’s shift toward in-house modems and rising component costs pressuring margins. Article: Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
• Negative Sentiment: Analyst caution may limit the recovery: Susquehanna cut its target to $165 and maintained a neutral rating, while a Seeking Alpha contributor downgraded QCOM from Strong Buy to Hold, citing few near-term catalysts and macro risks. Article: Qualcomm: Right Tech, Wrong Market Timing – Moving To The Sidelines

Analysts Set New Price Targets

A number of research firms have weighed in on QCOM. HSBC restated a “hold” rating on shares of Qualcomm in a research report on Wednesday, July 15th. Oppenheimer set a $200.00 target price on shares of Qualcomm in a research report on Monday, July 27th. Wells Fargo & Company cut their target price on shares of Qualcomm from $265.00 to $170.00 and set an “equal weight” rating for the company in a research note on Thursday, July 30th. Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a “buy” rating for the company in a research report on Monday, July 27th. Finally, Royal Bank Of Canada raised their price target on shares of Qualcomm from $160.00 to $180.00 and gave the company a “sector perform” rating in a research note on Wednesday, September 9th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $197.55.

Qualcomm Trading Up 5.5%

The company has a 50 day moving average of $178.09 and a 200 day moving average of $169.47. 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 market capitalization of $176.63 billion, a price-to-earnings ratio of 13.02, a P/E/G ratio of 3.90 and a beta of 1.70.

Qualcomm (NASDAQ:QCOM) last announced its earnings results 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 net margin of 31.60% and a return on equity of 31.91%. The company had revenue of $10.44 billion for the quarter, compared to analysts’ expectations of $10.12 billion. During the same quarter in the previous year, the company posted $3.00 EPS. The firm’s quarterly revenue was down 8.4% on a year-over-year basis. On average, research analysts predict that Qualcomm Incorporated will post 7.17 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be issued a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s payout ratio is currently 28.98%.

Insider Buying and Selling

In other news, CAO Patricia Grech sold 625 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $162.85, for a total value of $101,781.25. Following the completion of the sale, the chief accounting officer directly owned 208 shares in the company, valued at $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 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 stock in a transaction that occurred on Friday, October 16th. The shares were sold at an average price of $174.75, for a total value of $319,268.25. Following the completion of the sale, the executive vice president directly owned 25,770 shares of the company’s stock, valued at approximately $4,503,307.50. This represents a 6.62% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 31,759 shares of company stock valued at $5,970,088. 0.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of QCOM. JFS Wealth Advisors LLC grew its position in Qualcomm by 3.4% in the second quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company’s stock worth $295,000 after acquiring an additional 53 shares during the period. Canopy Partners LLC increased its stake in Qualcomm by 1.4% during the third quarter. Canopy Partners LLC now owns 4,148 shares of the wireless technology company’s stock worth $763,000 after acquiring an additional 56 shares during the last quarter. Wall Street Financial Group Inc. increased its stake in Qualcomm by 1.9% during the second quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company’s stock worth $564,000 after acquiring an additional 57 shares during the last quarter. Sunbeam Capital Management LLC raised its position in Qualcomm by 3.7% in the second quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company’s stock valued at $303,000 after purchasing an additional 58 shares during the period. Finally, LaFleur & Godfrey LLC raised its position in Qualcomm by 3.6% in the third quarter. LaFleur & Godfrey LLC now owns 1,656 shares of the wireless technology company’s stock valued at $305,000 after purchasing an additional 58 shares during the period. Hedge funds and other institutional investors own 74.35% of the company’s stock.

About Qualcomm

Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications.

Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.