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

Zacks Research lowered shares of Qualcomm (NASDAQ:QCOM) from a hold rating to a strong sell rating in a research report released on Tuesday,Zacks reports.

QCOM has been the subject of several other research reports. Evercore set a $159.00 price target on Qualcomm in a report on Thursday, July 30th. Wells Fargo & Company lowered their price objective 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. DZ Bank raised Qualcomm from a “hold” rating to a “buy” rating and set a $265.00 target price for the company in a research report on Friday, June 26th. Craig Hallum downgraded shares of Qualcomm from a “buy” rating to a “hold” rating in a research note on Thursday, June 25th. Finally, Melius Research set a $220.00 price target on shares of Qualcomm in a report on Monday, May 18th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $204.10.

Qualcomm Stock Down 1.6%

QCOM opened at $184.84 on Tuesday. The business has a 50 day moving average of $168.39 and a 200-day moving average of $171.86. The stock has a market capitalization of $194.12 billion, a price-to-earnings ratio of 21.39, a P/E/G ratio of 3.91 and a beta of 1.68. The company has a current ratio of 2.02, a quick ratio of 1.28 and a debt-to-equity ratio of 0.46. Qualcomm has a 1-year low of $121.99 and a 1-year high of $259.92.

Qualcomm (NASDAQ:QCOM) last released its 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 net margin of 21.01% and a return on equity of 38.36%. The company had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.69 billion. During the same quarter in the previous year, the company earned $2.77 earnings per share. Qualcomm’s revenue for the quarter was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, sell-side analysts anticipate that Qualcomm will post 7.74 earnings per share for the current year.

Qualcomm Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a $0.92 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.0%. Qualcomm’s dividend payout ratio is presently 42.59%.

Insider Buying and Selling

In other Qualcomm news, EVP Heather S. Ace sold 3,200 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $147.04, for a total transaction of $470,528.00. Following the sale, the executive vice president directly owned 36,535 shares of the company’s stock, valued at approximately $5,372,106.40. This represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 208 shares of Qualcomm stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $170.00, for a total transaction of $35,360.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 11,533 shares of company stock worth $1,924,969 in the last quarter. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

A number of hedge funds and other institutional investors have recently bought and sold shares of QCOM. BlackRock Inc. bought a new position in shares of Qualcomm in the second quarter valued at about $17,583,115,000. Geode Capital Management LLC increased its position in Qualcomm by 12.5% in the 4th 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 acquiring an additional 3,221,924 shares in the last quarter. Van ECK Associates Corp raised its stake in shares of Qualcomm by 22.7% in the second quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock worth $3,178,872,000 after acquiring an additional 3,179,720 shares during the last quarter. Norges Bank acquired a new position in shares of Qualcomm during the fourth quarter worth approximately $2,591,056,000. Finally, Invesco Ltd. increased its holdings 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 purchasing an additional 2,771,490 shares in the last quarter. 74.35% of the stock is owned by institutional investors and hedge funds.

Qualcomm News Roundup

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.