Qualcomm (NASDAQ:QCOM) Shares Up 3.2% – What’s Next?

Qualcomm Incorporated (NASDAQ:QCOMGet Free Report)’s stock price shot up 3.2% on Friday . The company traded as high as $259.92 and last traded at $251.02. 28,361,153 shares changed hands during trading, an increase of 78% from the average session volume of 15,916,709 shares. The stock had previously closed at $243.29.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

Analyst Ratings Changes

A number of research firms have weighed in on QCOM. DZ Bank cut shares of Qualcomm from a “buy” rating to a “hold” rating and set a $195.00 price objective for the company. in a research report on Friday, May 8th. Royal Bank Of Canada upped their price objective on shares of Qualcomm from $150.00 to $175.00 and gave the stock a “sector perform” rating in a research report on Thursday, April 30th. Weiss Ratings restated a “hold (c)” rating on shares of Qualcomm in a research report on Friday, March 27th. Evercore set a $179.00 price objective on shares of Qualcomm in a research report on Thursday, April 30th. Finally, Citigroup upped their price objective on shares of Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a research report on Thursday, April 30th. 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. Based on data from MarketBeat.com, Qualcomm has an average rating of “Hold” and a consensus target price of $181.79.

View Our Latest Stock Analysis on QCOM

Qualcomm Price Performance

The stock’s 50-day moving average price is $166.07 and its 200 day moving average price is $161.25. The firm has a market capitalization of $264.58 billion, a price-to-earnings ratio of 27.28, a PEG ratio of 31.09 and a beta of 1.49. 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:QCOMGet Free Report) last issued its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, beating analysts’ consensus estimates of $2.56 by $0.09. The business had revenue of $10.60 billion during the quarter, compared to analysts’ expectations of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company’s quarterly revenue was down 3.5% compared to the same quarter last year. During the same period in the prior year, the business earned $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities research analysts expect that Qualcomm Incorporated will post 7.99 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be given a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.5%. This is a positive change from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm’s dividend payout ratio (DPR) is currently 40.00%.

Qualcomm announced that its Board of Directors has approved a share buyback plan on Tuesday, March 17th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the wireless technology company to repurchase up to 14.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Qualcomm

In other news, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the sale, the executive vice president directly owned 39,735 shares in the company, valued at $7,065,677.70. This represents a 7.45% decrease in their ownership of the stock. The sale was disclosed in a filing 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, CEO Cristiano R. Amon sold 10,000 shares of the 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 completion of the sale, the chief executive officer owned 197,568 shares of the company’s stock, valued at $35,562,240. This trade represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 19,306 shares of company stock valued at $3,435,583 over the last ninety days. 0.05% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in Qualcomm by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 114,144,068 shares of the wireless technology company’s stock worth $19,524,350,000 after purchasing an additional 647,076 shares during the last quarter. Geode Capital Management LLC increased its position in Qualcomm by 12.5% during the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock worth $4,931,968,000 after purchasing an additional 3,221,924 shares during the last quarter. Wellington Management Group LLP increased its position in Qualcomm by 34.5% during the fourth quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company’s stock worth $2,861,301,000 after purchasing an additional 4,290,622 shares during the last quarter. Norges Bank acquired a new stake in Qualcomm during the fourth quarter worth about $2,591,056,000. Finally, Amundi increased its position in Qualcomm by 9.9% during the third quarter. Amundi now owns 12,671,635 shares of the wireless technology company’s stock worth $2,136,486,000 after purchasing an additional 1,138,541 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

About Qualcomm

(Get Free Report)

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.

Further Reading

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