Qualcomm (NASDAQ:QCOM) Shares Gap Down Following Analyst Downgrade

Qualcomm Incorporated (NASDAQ:QCOM)’s share price gapped down before the market opened on Thursday after Susquehanna lowered their price target on the stock from $185.00 to $165.00. The stock had previously closed at $173.19, but opened at $150.06. Susquehanna currently has a neutral rating on the stock. Qualcomm shares last traded at $157.0070, with a volume of 4,894,688 shares trading hands.

A number of other analysts have also recently weighed in on the stock. Citigroup lowered their price target on shares of Qualcomm from $198.00 to $175.00 and set a “neutral” rating on the stock in a report on Wednesday, July 29th. HSBC reiterated a “hold” rating on shares of Qualcomm in a report on Wednesday, July 15th. Piper Sandler started coverage on Qualcomm in a research report on Wednesday, September 9th. They issued a “neutral” rating and a $190.00 price objective for the company. The Goldman Sachs Group restated a “neutral” rating on shares of Qualcomm in a research note on Thursday. Finally, KeyCorp restated a “sector weight” rating on shares of Qualcomm in a research note on Wednesday, September 9th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $202.03.

Insider Buying and Selling

In other Qualcomm news, EVP Ann C. Chaplin sold 1,827 shares of the business’s stock in a transaction on Friday, October 16th. The shares were sold at an average price of $174.75, for a total value of $319,268.25. Following the completion of the transaction, the executive vice president owned 25,770 shares in the company, valued at $4,503,307.50. The trade was a 6.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 625 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the completion of the sale, the chief accounting officer directly owned 208 shares in the company, valued at approximately $33,872.80. This represents a 75.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 30,258 shares of company stock worth $5,727,616. 0.05% of the stock is currently owned by corporate insiders.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for the terrestrial 5G network planned for Starlink Mobile. The multiyear deal could add a major customer and diversify Qualcomm beyond handsets, though its near-term financial contribution is not specified. Reuters article on Qualcomm’s SpaceX deal
• Positive Sentiment: Automotive and IoT growth, along with a ramp in data-center activity, offer longer-term diversification. Qualcomm said non-handset products are expected to account for half of chip sales this fiscal year. Earnings call highlights
• Negative Sentiment: The main concern is handset weakness: smartphone-chip sales fell sharply, weighing on revenue and chip margins amid memory-related pressure on phone demand. Revenue declined about 8% year over year. Reuters report on handset sales and data-center momentum
• Negative Sentiment: Although fiscal Q4 EPS of $2.17 and revenue of $10.44 billion beat consensus, investors reacted to a softer profit outlook and continued margin pressure as newer businesses grow. Susquehanna also cut its price target to $165 from $185 and maintained a neutral rating. Article on Qualcomm’s guidance and handset slump

Hedge Funds Weigh In On Qualcomm

Hedge funds have recently modified their holdings of the business. ABS Investment Management LLC acquired a new position in Qualcomm during the 2nd quarter worth approximately $34,000. ABS Direct Equity Fund LLC acquired a new stake in shares of Qualcomm in the 2nd quarter valued at approximately $34,000. Mizuho Securities Co. Ltd. acquired a new stake in shares of Qualcomm in the 3rd quarter valued at approximately $35,000. Your Advocates Ltd. LLP purchased a new stake in shares of Qualcomm in the first quarter valued at approximately $26,000. Finally, Team Financial Group LLC purchased a new stake in shares of Qualcomm in the third quarter valued at approximately $38,000. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

Qualcomm Stock Performance

The stock has a 50 day moving average of $178.23 and a two-hundred day moving average of $169.48. The stock has a market capitalization of $163.99 billion, a PE ratio of 17.90, a P/E/G ratio of 3.70 and a beta of 1.70. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28.

Qualcomm (NASDAQ:QCOM) last announced 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 for the quarter, compared to analyst estimates of $10.12 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The company’s quarterly revenue was down 8.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.00 EPS. Research analysts expect that Qualcomm Incorporated will post 7.71 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be issued a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Thursday, December 3rd. Qualcomm’s dividend payout ratio is presently 42.59%.

About Qualcomm

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.