Qualcomm (NASDAQ:QCOM) Shares Down 9.5% Following Analyst Downgrade

Qualcomm Incorporated (NASDAQ:QCOM) traded down 9.5% during mid-day trading on Thursday after TD Cowen lowered their price target on the stock from $200.00 to $185.00. TD Cowen currently has a buy rating on the stock. Qualcomm traded as low as $148.25 and last traded at $156.75. 39,910,222 shares were traded during trading, an increase of 164% from the average daily volume of 15,144,726 shares. The stock had previously closed at $173.19.

Several other analysts have also commented on the stock. Rosenblatt Securities lowered their price objective on shares of Qualcomm from $235.00 to $205.00 and set a “buy” rating for the company in a report on Thursday. HSBC reiterated a “hold” rating on shares of Qualcomm in a report on Wednesday, July 15th. Morgan Stanley decreased their target price on Qualcomm from $231.00 to $220.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. Freedom Capital upgraded Qualcomm from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 7th. Finally, Wells Fargo & Company dropped their price target on Qualcomm from $265.00 to $170.00 and set an “equal weight” rating on the stock in a research report on Thursday, July 30th. Three 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $199.45.

Insider Buying and Selling at Qualcomm

In related news, CEO Cristiano Amon sold 10,000 shares of Qualcomm stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the completion of the transaction, the chief executive officer directly owned 177,568 shares of the company’s stock, valued at $35,513,600. This trade represents a 5.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann Chaplin sold 1,827 shares of the business’s stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $174.75, for a total transaction of $319,268.25. Following the sale, the executive vice president directly owned 25,770 shares in the company, valued at $4,503,307.50. The trade was a 6.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 30,258 shares of company stock valued at $5,727,616. Insiders own 0.05% of the company’s stock.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reported fiscal Q4 EPS of $2.17 and revenue of about $10.44 billion, edging past consensus. Automotive revenue surged 89%, while the company sees data-center revenue reaching $5 billion in fiscal 2027. QCOM Q4 Earnings Beat Estimates on Robust Automotive Growth
• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for Starlink Mobile’s planned U.S. 5G network, creating a significant infrastructure opportunity. Qualcomm signs major 5G infrastructure deal with SpaceX
• Negative Sentiment: Soft profit guidance and margin concerns are overshadowing the earnings beat. Revenue fell 8.4% year over year, with handset sales down sharply; investors are also concerned about declining Apple-related handset revenue and lower margins as newer businesses grow. Qualcomm Beat Earnings, But Its Fastest-Growing Businesses Have a Catch
• Negative Sentiment: Analysts have cut price targets: Susquehanna lowered its target to $165 and Rosenblatt reduced its target to $205, although Rosenblatt maintained a Buy rating. Broader chip-sector weakness and concerns about data-center demand added pressure. Qualcomm slides after earnings, leading post-election chip stock sell-off

Institutional Trading of Qualcomm

Several hedge funds and other institutional investors have recently made changes to their positions in QCOM. ABS Investment Management LLC purchased a new position in shares of Qualcomm in the 2nd quarter worth about $34,000. ABS Direct Equity Fund LLC bought a new position in Qualcomm in the 2nd quarter worth about $34,000. Mizuho Securities Co. Ltd. purchased a new stake in Qualcomm during the 3rd quarter valued at about $35,000. Your Advocates Ltd. LLP purchased a new stake in Qualcomm during the 1st quarter valued at about $26,000. Finally, Team Financial Group LLC bought a new stake in Qualcomm during the 3rd quarter valued at about $38,000. Hedge funds and other institutional investors own 74.35% of the company’s stock.

Qualcomm Stock Performance

The firm has a market capitalization of $167.38 billion, a P/E ratio of 18.14, a price-to-earnings-growth ratio of 3.70 and a beta of 1.70. 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 business’s 50 day simple moving average is $178.23 and its two-hundred day simple moving average is $169.48.

Qualcomm (NASDAQ:QCOM) last issued 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. The business had revenue of $10.44 billion during the quarter, compared to analysts’ expectations of $10.12 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The business’s revenue for the quarter was down 8.4% compared to the same quarter last year. During the same period in the previous year, the company earned $3.00 earnings per share. Sell-side analysts anticipate that Qualcomm Incorporated will post 7.71 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s payout ratio is presently 42.59%.

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.