Qualcomm (NASDAQ:QCOM) Shares Down 11% – Here’s What Happened

Qualcomm Incorporated (NASDAQ:QCOM) traded down 11% during mid-day trading on Friday . The company traded as low as $215.00 and last traded at $215.94. 23,790,452 shares changed hands during mid-day trading, an increase of 48% from the average session volume of 16,088,134 shares. The stock had previously closed at $242.57.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the company. Roth Mkm assumed coverage on Qualcomm in a research note on Friday, May 8th. They issued a “buy” rating on the stock. Freedom Capital downgraded shares of Qualcomm from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Piper Sandler restated an “overweight” rating and set a $200.00 price target on shares of Qualcomm in a report on Thursday, February 5th. BNP Paribas Exane lowered shares of Qualcomm to a “neutral” rating in a research note on Wednesday, April 29th. Finally, Barclays lifted their price objective on shares of Qualcomm from $130.00 to $150.00 and gave the stock an “underweight” rating in a research report on Thursday, April 30th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $181.79.

Qualcomm Trading Down 11.0%

The firm has a market capitalization of $227.60 billion, a price-to-earnings ratio of 23.47, a price-to-earnings-growth ratio of 30.97 and a beta of 1.59. The company has a fifty day moving average price of $174.95 and a 200-day moving average price of $163.03. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54.

Qualcomm (NASDAQ:QCOM) last posted its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.56 by $0.09. The firm 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 revenue was down 3.5% compared to the same quarter last year. During the same period in the previous year, the company earned $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, equities research analysts predict that Qualcomm Incorporated will post 7.99 EPS for the current year.

Qualcomm Increases Dividend

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

Qualcomm announced that its Board of Directors has authorized a share repurchase program on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to buy up to 14.5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the business’s stock in a transaction on Monday, April 13th. The shares were sold at an average price of $130.34, for a total value of $325,850.00. Following the completion of the sale, the executive vice president directly owned 30,684 shares in the company, valued at approximately $3,999,352.56. The trade was a 7.53% 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 hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $177.82, for a total transaction of $569,024.00. Following the sale, the executive vice president directly owned 39,735 shares of the company’s stock, valued at approximately $7,065,677.70. This represents a 7.45% 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 quarter, insiders sold 19,306 shares of company stock worth $3,435,583. Insiders own 0.05% of the company’s stock.

Institutional Investors Weigh In On Qualcomm

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Richardson Financial Services Inc. boosted its stake in Qualcomm by 90.9% during the 4th quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock valued at $29,000 after purchasing an additional 80 shares during the period. Torren Management LLC acquired a new stake in shares of Qualcomm in the fourth quarter worth $29,000. Caitong International Asset Management Co. Ltd grew its stake in shares of Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after acquiring an additional 170 shares during the last quarter. Birchwood Financial Partners Inc. bought a new position in Qualcomm during the fourth quarter worth $31,000. Finally, Commonwealth Retirement Investments LLC acquired a new position in shares of Qualcomm during the fourth quarter valued at about $32,000. 74.35% of the stock is owned by institutional investors and hedge funds.

Qualcomm Company Profile

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.