Qualcomm (NASDAQ:QCOM) Shares Down 7.6% – Time to Sell?

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price dropped 7.6% on Friday . The company traded as low as $186.18 and last traded at $189.39. Approximately 36,505,189 shares changed hands during trading, an increase of 115% from the average session volume of 16,953,482 shares. The stock had previously closed at $204.90.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm lifted its long-term revenue outlook, including a $40 billion fiscal 2029 non-handset target and over $15 billion in data center AI revenue, reinforcing the company’s growth story beyond handsets.
• Positive Sentiment: New partnerships with Meta and Microsoft give Qualcomm credible early customers for its data center push, reducing skepticism around execution.
• Positive Sentiment: The planned Modular acquisition should improve Qualcomm’s AI software capabilities and support its expansion into enterprise AI and cloud workloads.
• Neutral Sentiment: Analysts broadly turned more constructive, with upgraded ratings and higher price targets, but some still warn execution risk remains high as Qualcomm builds out new businesses.
• Negative Sentiment: The opportunity is still largely a long-term story: the chips and data center products are not yet fully in production, so near-term results may not immediately reflect the new growth targets.

Analyst Ratings Changes

Several research firms have recently issued reports on QCOM. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a research report on Wednesday. Lake Street Capital lowered shares of Qualcomm to a “hold” rating in a research note on Thursday. Oppenheimer cut shares of Qualcomm from a “market perform” rating to a “market perform” rating in a report on Friday, May 8th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $160.00 target price on shares of Qualcomm in a research report on Thursday, April 30th. Finally, Seaport Research Partners reaffirmed a “sell” rating and issued a $100.00 price target on shares of Qualcomm in a report on Monday, March 16th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twenty have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $218.03.

Qualcomm Stock Down 7.6%

The company has a market cap of $199.62 billion, a PE ratio of 20.59, a P/E/G ratio of 24.50 and a beta of 1.59. The stock has a 50-day moving average of $199.96 and a 200-day moving average of $167.69. 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:QCOM) last released its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping 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 business’s quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Sell-side analysts predict that Qualcomm Incorporated will post 7.98 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were paid a $0.92 dividend. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. Qualcomm’s dividend payout ratio is presently 40.00%.

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

Insider Activity

In other news, CAO Patricia Y. Grech sold 829 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total transaction of $167,267.33. The transaction was disclosed in a legal filing with the SEC, which is available 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 company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $177.82, for a total value of $569,024.00. Following the transaction, the executive vice president owned 39,735 shares of the company’s stock, valued at approximately $7,065,677.70. This represents 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. Insiders sold 21,806 shares of company stock valued at $3,928,958 in the last three months. Corporate insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in QCOM. Your Advocates Ltd. LLP bought a new stake in shares of Qualcomm during the 1st quarter valued at about $26,000. Richardson Financial Services Inc. raised its stake in Qualcomm by 90.9% in the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock worth $29,000 after buying an additional 80 shares in the last quarter. Torren Management LLC purchased a new stake in Qualcomm in the fourth quarter worth about $29,000. Caitong International Asset Management Co. Ltd lifted its holdings in 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 buying an additional 170 shares during the period. Finally, Birchwood Financial Partners Inc. bought a new stake in Qualcomm during the 4th quarter valued at approximately $31,000. 74.35% of the stock is currently owned by institutional investors.

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.