Qualcomm (NASDAQ:QCOM) Stock Price Up 1.8% – Time to Buy?

Qualcomm Incorporated (NASDAQ:QCOM)’s share price shot up 1.8% during trading on Wednesday. The company traded as high as $182.17 and last traded at $176.57. Approximately 14,017,174 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 15,179,884 shares. The stock had previously closed at $173.53.

Trending Headlines about Qualcomm

These are some of the QCOM headlines that stood out recently:

• Positive Sentiment: Qualcomm is positioning itself as a full-stack supplier to AI data centers and could pursue up to $50 billion in the opportunity. That potential growth avenue is drawing interest, although it will take time to establish. Article
• Positive Sentiment: A partnership with Kora Systems will bring a Linux-based AI desktop operating system optimized for Snapdragon PCs, supporting Qualcomm’s push to expand beyond smartphones. Article
• Negative Sentiment: Freedom Broker downgraded Qualcomm from Buy to Hold and cut its price target to $185 from $200, warning that investment in newer growth businesses could pressure margins for longer than expected. Article

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on QCOM. Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a “buy” rating on the stock in a research report on Monday, July 27th. Robert W. Baird set a $320.00 price target on shares of Qualcomm in a report on Thursday, November 5th. The Goldman Sachs Group reaffirmed a “neutral” rating on shares of Qualcomm in a research report on Thursday, November 5th. Citigroup dropped their price objective on shares of Qualcomm from $198.00 to $175.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 29th. Finally, Wells Fargo & Company cut their target price on shares of Qualcomm from $265.00 to $170.00 and set an “equal weight” rating on the stock in a report on Thursday, July 30th. Three research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twenty-one have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $197.13.

Qualcomm Price Performance

The company has a debt-to-equity ratio of 0.42, a current ratio of 1.86 and a quick ratio of 1.14. The stock has a market capitalization of $188.93 billion, a price-to-earnings ratio of 13.90, a price-to-earnings-growth ratio of 2.71 and a beta of 1.70. The company has a 50-day simple moving average of $178.31 and a two-hundred day simple moving average of $169.68.

Qualcomm (NASDAQ:QCOM) last released its quarterly earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 EPS for the quarter, topping the consensus estimate of $2.16 by $0.01. The business had revenue of $10.44 billion during the quarter, compared to analyst estimates of $10.12 billion. Qualcomm had a net margin of 31.60% and a return on equity of 30.62%. The company’s quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.00 earnings per share. On average, equities research analysts predict that Qualcomm Incorporated will post 7.15 earnings per share for the current year.

Qualcomm Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be paid a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s payout ratio is currently 28.98%.

Insider Transactions at Qualcomm

In other news, EVP Akash Palkhiwala sold 2,500 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $182.85, for a total value of $457,125.00. Following the completion of the transaction, the executive vice president directly owned 18,184 shares in the company, valued at $3,324,944.40. This trade represents a 12.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather Ace sold 3,200 shares of the company’s stock in a transaction that occurred on Monday, November 9th. The stock was sold at an average price of $165.42, for a total value of $529,344.00. Following the completion of the sale, the executive vice president owned 39,379 shares of the company’s stock, valued at $6,514,074.18. This trade represents a 7.52% 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 a total of 32,520 shares of company stock worth $6,101,411 over the last ninety days. Insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Baxter Bros Inc. acquired a new stake in shares of Qualcomm during the second quarter valued at approximately $17,844,000. Y Intercept Hong Kong Ltd acquired a new position in Qualcomm in the 2nd quarter worth approximately $28,068,000. Cullinan Associates Inc. boosted its stake in Qualcomm by 11.3% in the 3rd quarter. Cullinan Associates Inc. now owns 55,373 shares of the wireless technology company’s stock worth $10,191,000 after purchasing an additional 5,629 shares during the period. Tensor Edge Capital LLC acquired a new position in Qualcomm in the 2nd quarter worth approximately $147,315,000. Finally, Sawyer & Company Inc purchased a new position in Qualcomm during the 3rd quarter worth approximately $2,403,000. Institutional investors own 74.35% of the company’s stock.

Qualcomm Company Profile

Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications. Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.