Qualcomm (NASDAQ:QCOM) Trading 5.4% Higher – Still a Buy?

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price rose 5.4% during mid-day trading on Thursday . The company traded as high as $214.01 and last traded at $213.41. Approximately 28,017,518 shares changed hands during trading, an increase of 83% from the average daily volume of 15,286,070 shares. The stock had previously closed at $202.51.

Analysts Set New Price Targets

QCOM has been the subject of a number of research reports. Piper Sandler reissued an “overweight” rating and set a $200.00 target price on shares of Qualcomm in a research note on Thursday, February 5th. Roth Mkm started coverage on shares of Qualcomm in a report on Friday, May 8th. They set a “buy” rating on the stock. Cantor Fitzgerald raised their price target on shares of Qualcomm from $135.00 to $150.00 and gave the company a “neutral” rating in a report on Thursday, April 30th. Citigroup raised their price target on shares of Qualcomm from $140.00 to $160.00 and gave the company a “neutral” rating in a report on Thursday, April 30th. Finally, Loop Capital upgraded shares of Qualcomm from a “hold” rating to a “buy” rating and set a $185.00 price target on the stock in a report on Tuesday, February 24th. Fourteen equities research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $181.79.

Qualcomm Stock Up 5.4%

The stock has a market cap of $224.93 billion, a P/E ratio of 23.20, a P/E/G ratio of 24.23 and a beta of 1.49. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The firm’s fifty day moving average is $151.18 and its 200 day moving average is $158.10.

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

Qualcomm Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be issued a $0.92 dividend. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. This represents a $3.68 annualized dividend and a yield of 1.7%. Qualcomm’s payout ratio is 38.70%.

Qualcomm declared that its Board of Directors has approved a stock repurchase program on Tuesday, March 17th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the wireless technology company to buy up to 14.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, CEO Cristiano R. Amon sold 10,000 shares of the business’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the transaction, the chief executive officer owned 197,568 shares in the company, valued at approximately $35,562,240. The trade was a 4.82% decrease in their position. The transaction 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. Also, EVP Heather S. Ace sold 3,200 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total transaction of $569,024.00. Following the transaction, the executive vice president owned 39,735 shares in the company, valued at approximately $7,065,677.70. The trade was a 7.45% 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. Over the last quarter, insiders have sold 19,306 shares of company stock worth $3,435,583. Insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in QCOM. Brighton Jones LLC increased its holdings in shares of Qualcomm by 116.6% during the 4th quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company’s stock worth $2,666,000 after purchasing an additional 9,343 shares during the period. Revolve Wealth Partners LLC increased its stake in Qualcomm by 15.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company’s stock valued at $391,000 after acquiring an additional 340 shares during the period. Sivia Capital Partners LLC increased its stake in Qualcomm by 44.3% in the second quarter. Sivia Capital Partners LLC now owns 3,325 shares of the wireless technology company’s stock valued at $530,000 after acquiring an additional 1,020 shares during the period. Main Street Financial Solutions LLC increased its stake in Qualcomm by 6.1% in the second quarter. Main Street Financial Solutions LLC now owns 5,778 shares of the wireless technology company’s stock valued at $920,000 after acquiring an additional 333 shares during the period. Finally, Transamerica Financial Advisors LLC increased its stake in Qualcomm by 9.7% in the second quarter. Transamerica Financial Advisors LLC now owns 6,800 shares of the wireless technology company’s stock valued at $1,083,000 after acquiring an additional 603 shares during the period. Institutional investors own 74.35% of the company’s stock.

About Qualcomm

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.