Qualcomm (NASDAQ:QCOM) Shares Up 5.5% – Here’s Why

Shares of Qualcomm Incorporated (NASDAQ:QCOM) traded up 5.5% during trading on Friday. The stock traded as high as $167.47 and last traded at $165.41. 19,462,588 shares changed hands during trading, an increase of 28% from the average daily volume of 15,176,346 shares. The stock had previously closed at $156.75.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s fiscal Q4 revenue of $10.44 billion and non-GAAP EPS of $2.17 edged past estimates. Automotive growth and the company’s data-center ambitions offer potential sources of diversification. Article: Is Qualcomm Stock Worth Buying After Mixed Q4 Results?
• Positive Sentiment: A broader market recovery helped lift shares after Thursday’s sharp sell-off, as investors reassessed fears that election-related policy changes could slow data-center investment. Article: Tech executives react to post-midterm AI sell-off
• Positive Sentiment: Alphabet disclosed a $548 million Qualcomm stake, a potentially supportive signal of institutional investor interest. Article: Alphabet discloses Qualcomm stake
• Positive Sentiment: Qualcomm is also set to provide chips and software for SpaceX’s planned terrestrial mobile network, adding a potential opportunity beyond its traditional handset market. Article: SpaceX Qualcomm 5G deal
• Neutral Sentiment: EVP Ann Chaplin sold 1,501 shares under a pre-arranged Rule 10b5-1 plan and retained 27,271 shares; the planned sale may carry limited signaling weight. SEC filing
• Negative Sentiment: Despite the beat, year-over-year revenue and earnings declined, and weak profit guidance, handset softness and rising component costs are weighing on expectations. Analysts have also cut price targets, while concerns about data-center investment and margins remain. Article: Qualcomm beat earnings, but its fastest-growing businesses have a catch

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on QCOM. The Goldman Sachs Group reiterated a “neutral” rating on shares of Qualcomm in a report on Thursday. Citigroup lowered their price objective on shares of Qualcomm from $198.00 to $175.00 and set a “neutral” rating for the company in a research report on Wednesday, July 29th. Wells Fargo & Company dropped their price objective 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. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Qualcomm in a research report on Monday, September 21st. Finally, Oppenheimer set a $200.00 target price on shares of Qualcomm in a research note on Monday, July 27th. Three research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Qualcomm presently has an average rating of “Hold” and an average target price of $197.55.

Qualcomm Price Performance

The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.28 and a current ratio of 1.86. The company has a fifty day moving average price of $178.11 and a two-hundred day moving average price of $169.52. The company has a market cap of $176.99 billion, a P/E ratio of 13.02, a PEG ratio of 3.73 and a beta of 1.70.

Qualcomm (NASDAQ:QCOM) last released its earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.16 by $0.01. Qualcomm had a return on equity of 30.62% and a net margin of 31.60%. The business had revenue of $10.44 billion for the quarter, compared to analyst estimates of $10.12 billion. During the same quarter in the prior year, the company posted $3.00 earnings per share. Qualcomm’s revenue was down 8.4% on a year-over-year basis. On average, sell-side analysts anticipate that Qualcomm Incorporated will post 7.16 earnings per share for the current fiscal year.

Qualcomm Dividend Announcement

The business 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 $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, December 3rd. Qualcomm’s dividend payout ratio is presently 28.98%.

Insider Activity

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the company’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $182.85, for a total transaction of $457,125.00. Following the sale, the executive vice president directly owned 18,184 shares of the company’s stock, valued at approximately $3,324,944.40. This represents a 12.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the stock in a transaction on Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the chief executive officer owned 177,568 shares of the company’s stock, valued at approximately $35,513,600. This represents a 5.33% 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 a total of 31,820 shares of company stock valued at $5,980,217 over the last three months. Corporate insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. MSH Capital Advisors LLC grew its holdings in Qualcomm by 12.9% during the third quarter. MSH Capital Advisors LLC now owns 1,392 shares of the wireless technology company’s stock worth $256,000 after purchasing an additional 159 shares during the period. Cornerstone Advisory LLC increased its position in Qualcomm by 7.8% during the third quarter. Cornerstone Advisory LLC now owns 2,259 shares of the wireless technology company’s stock worth $416,000 after buying an additional 163 shares during the last quarter. Diversified Trust Co increased its position in Qualcomm by 72.1% during the third quarter. Diversified Trust Co now owns 63,701 shares of the wireless technology company’s stock worth $11,723,000 after buying an additional 26,679 shares during the last quarter. Vista Capital Partners Inc. bought a new stake in Qualcomm in the third quarter valued at approximately $228,000. Finally, Compass Capital Management Inc. raised its stake in Qualcomm by 12.1% in the third quarter. Compass Capital Management Inc. now owns 300,803 shares of the wireless technology company’s stock valued at $55,360,000 after buying an additional 32,482 shares during the period. 74.35% of the stock is currently owned by institutional investors and hedge funds.

About Qualcomm

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.