Qualcomm (NASDAQ:QCOM) Downgraded by Zacks Research to Strong Sell

Qualcomm (NASDAQ:QCOM) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks reports.

QCOM has been the topic of a number of other reports. TD Cowen reduced their target price on shares of Qualcomm from $225.00 to $175.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Guggenheim set a $200.00 price target on Qualcomm in a report on Monday, June 22nd. Lake Street Capital cut Qualcomm to a “hold” rating in a research note on Thursday, June 25th. Cantor Fitzgerald reduced their price objective on Qualcomm from $200.00 to $165.00 and set a “neutral” rating on the stock in a report on Monday, July 27th. Finally, Craig Hallum lowered Qualcomm from a “buy” rating to a “hold” rating in a research report on Thursday, June 25th. Two equities research 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 issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $204.10.

Qualcomm Stock Down 1.6%

Shares of QCOM opened at $184.84 on Tuesday. The firm has a fifty day moving average price of $168.39 and a 200-day moving average price of $171.86. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46. The firm has a market capitalization of $194.12 billion, a P/E ratio of 21.39, a P/E/G ratio of 3.91 and a beta of 1.68. Qualcomm has a 12-month low of $121.99 and a 12-month high of $259.92.

Qualcomm (NASDAQ:QCOM) last posted its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing the consensus estimate of $2.23 by ($0.02). Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.The company had revenue of $9.95 billion during the quarter, compared to analysts’ expectations of $9.69 billion. During the same period in the prior year, the business earned $2.77 EPS. The company’s quarterly revenue was down 4.0% on a year-over-year basis. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. Equities research analysts expect that Qualcomm will post 7.74 earnings per share for the current year.

Insider Buying and Selling at Qualcomm

In other Qualcomm news, CAO Patricia Grech sold 208 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $170.00, for a total transaction of $35,360.00. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather Ace sold 3,200 shares of Qualcomm stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $147.04, for a total value of $470,528.00. Following the completion of the transaction, the executive vice president owned 36,535 shares in the company, valued at $5,372,106.40. This represents a 8.05% decrease in their ownership of the stock. 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 90 days, insiders have sold 11,533 shares of company stock valued at $1,924,969. 0.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Qualcomm

A number of large investors have recently added to or reduced their stakes in the company. Talon Private Wealth LLC boosted its holdings in shares of Qualcomm by 14.3% in the 2nd quarter. Talon Private Wealth LLC now owns 14,498 shares of the wireless technology company’s stock valued at $2,679,000 after buying an additional 1,819 shares in the last quarter. ABS Direct Equity Fund LLC bought a new position in shares of Qualcomm during the 2nd quarter worth approximately $34,000. Bouchey Financial Group Ltd. bought a new position in shares of Qualcomm during the 2nd quarter worth approximately $268,000. Core Capital Management & Research inc. bought a new position in shares of Qualcomm during the 2nd quarter worth approximately $208,000. Finally, Sequoia Financial Advisors LLC lifted its position in Qualcomm by 9.6% during the second quarter. Sequoia Financial Advisors LLC now owns 153,479 shares of the wireless technology company’s stock valued at $28,361,000 after acquiring an additional 13,452 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s multi-generation collaboration with Amazon to develop customized AI data-center chips and optical-connectivity solutions is strengthening the company’s diversification story. Amazon may also receive warrants to purchase up to $4 billion of Qualcomm stock, linking the two companies’ interests. Why Qualcomm Is Up After New Amazon AI Chip Deal
• Positive Sentiment: StoneX reiterated a Buy rating and a $270 price target, citing growing exposure to hyperscale customers and an improving data-center outlook. Qualcomm’s automotive business and AI infrastructure efforts could reduce reliance on smartphones. Qualcomm Stock Rises as AWS Deal Boosts Data Center Outlook
• Positive Sentiment: Investors are increasingly viewing Qualcomm as a potential AI data-center and networking supplier, following its Amazon relationship and a separate Compute Fabric partnership with Cornelis Networks. This has helped drive a substantial rally since August. QCOM Stock Climbs as AI Data Center Push Gains Momentum
• Neutral Sentiment: Qualcomm’s quarterly dividend is scheduled for payment on September 24 to shareholders of record as of September 3. The payout may support income-oriented demand but is unlikely to materially change the near-term growth outlook. Qualcomm Dividend Payment
• Negative Sentiment: Some analysts argue the market has already priced in much of Qualcomm’s data-center opportunity, leaving less room for upside until the company demonstrates meaningful revenue and profit contribution. Qualcomm’s Datacenter Pivot Is Real, but the Market Already Knows This
• Negative Sentiment: Apple’s shift toward internally developed modem chips remains a major overhang for Qualcomm’s handset business and royalty revenue. Recent insider selling added a further short-term sentiment headwind. Should You Buy Qualcomm Stock for the Cash as Apple Leaves?

Qualcomm Company Profile

Qualcomm Incorporated (NASDAQ: QCOM) is a technology company that develops wireless communications technologies, semiconductors and related intellectual property. Headquartered in San Diego, California, the company serves customers and partners worldwide across the mobile, automotive, consumer electronics and industrial markets.

Through its Qualcomm CDMA Technologies (QCT) business, Qualcomm designs and supplies integrated circuits, system software and hardware platforms. Its products include Snapdragon mobile platforms, 5G and other wireless modems, radio-frequency components, connectivity solutions, processors and artificial intelligence technologies.