Qualcomm (NASDAQ:QCOM) Shares Down 6.1% Following Insider Selling

Qualcomm Incorporated (NASDAQ:QCOM)’s share price dropped 6.1% on Thursday after an insider sold shares in the company. The company traded as low as $199.66 and last traded at $200.08. Approximately 24,318,218 shares changed hands during trading, an increase of 63% from the average daily volume of 14,928,271 shares. The stock had previously closed at $213.17.

Specifically, EVP Akash J. Palkhiwala sold 2,500 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total value of $529,750.00. Following the sale, the executive vice president owned 28,184 shares of the company’s stock, valued at $5,972,189.60. The trade was a 8.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

QCOM has been the topic of a number of research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a research report on Friday, March 27th. UBS Group lowered shares of Qualcomm from a “neutral” rating to an “underperform” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. boosted their target price on shares of Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Evercore set a $179.00 target price on shares of Qualcomm in a report on Thursday, April 30th. Finally, DZ Bank downgraded shares of Qualcomm from a “buy” rating to a “hold” rating and set a $195.00 target price on the stock. in a report on Friday, May 8th. Fourteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $180.37.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm posted stronger-than-expected fiscal second-quarter results, with EPS and revenue both slightly ahead of estimates, helping reassure investors that core fundamentals remain solid. Why Is Qualcomm (QCOM) Stock Soaring Today
• Positive Sentiment: Analysts turned more constructive after the results, citing Qualcomm’s data center processor progress, custom silicon wins with hyperscalers, and easing US-China tariff tensions as reasons for additional upside. Qualcomm: The Cheapest AI Winner (Rating Upgrade)
• Positive Sentiment: Qualcomm’s new Snapdragon platforms and AI features are supporting the view that its smartphone business can still grow while the company expands into higher-growth markets. QUALCOMM Incorporated (QCOM) Eyes Smartphone Growth with New Snapdragon Platforms
• Positive Sentiment: Wall Street analysts have recently raised price targets and upgraded the stock, reinforcing the bullish case after the latest rally. Qualcomm (QCOM) price target increased by 12.91% to 180.60
• Neutral Sentiment: Insider selling by EVP Akash Palkhiwala was disclosed, but it was done under a pre-arranged trading plan and is not necessarily a bearish signal.
• Negative Sentiment: Some commentary suggests the semiconductor rally may be cooling, and Qualcomm could remain volatile if investors rotate out of AI chip winners. Wall Street Is Worried About a ‘Sizzling’ Semiconductor Trade
• Negative Sentiment: Reports also note ongoing concerns about competition and smartphone-related headwinds, which could limit how far the recent move can extend. Wall Street analysts update Qualcomm’s stock price target for the next 12 months

Qualcomm Stock Performance

The stock has a market capitalization of $210.88 billion, a price-to-earnings ratio of 21.75, a P/E/G ratio of 26.05 and a beta of 1.49. The company’s fifty day simple moving average is $144.88 and its 200 day simple moving average is $157.33. The company has a quick ratio of 1.61, a current ratio of 2.37 and a debt-to-equity ratio of 0.54.

Qualcomm (NASDAQ:QCOM) last released its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The firm had revenue of $10.60 billion for the quarter, compared to the consensus estimate of $10.59 billion. During the same period in the previous year, the company earned $2.85 earnings per share. The company’s quarterly revenue was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, equities research analysts expect that Qualcomm Incorporated will post 7.99 earnings per share for the current year.

Qualcomm Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be issued a $0.92 dividend. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Thursday, June 4th. Qualcomm’s dividend payout ratio is presently 38.70%.

Qualcomm declared that its board has approved a stock buyback plan on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the wireless technology company to purchase up to 14.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Qualcomm

Several institutional investors and hedge funds have recently modified their holdings of QCOM. Norges Bank acquired a new position in shares of Qualcomm in the fourth quarter valued at $2,591,056,000. Wellington Management Group LLP increased its holdings in shares of Qualcomm by 141.8% in the third quarter. Wellington Management Group LLP now owns 12,437,240 shares of the wireless technology company’s stock valued at $2,069,059,000 after purchasing an additional 7,292,783 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Qualcomm by 12.5% in the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock valued at $4,931,968,000 after purchasing an additional 3,221,924 shares during the last quarter. Invesco Ltd. grew its stake in shares of Qualcomm by 28.1% in the fourth quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company’s stock valued at $2,163,030,000 after acquiring an additional 2,771,490 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of Qualcomm by 36.8% in the third quarter. Dimensional Fund Advisors LP now owns 6,552,427 shares of the wireless technology company’s stock valued at $1,090,025,000 after acquiring an additional 1,764,252 shares in the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

Qualcomm Company Profile

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.