Qualcomm (NASDAQ:QCOM) Stock Price Up 1.2% – Should You Buy?

Qualcomm Incorporated (NASDAQ:QCOM) shares traded up 1.2% during trading on Tuesday. The stock traded as high as $174.41 and last traded at $173.53. 8,361,282 shares changed hands during mid-day trading, a decline of 45% from the average session volume of 15,165,794 shares. The stock had previously closed at $171.47.

Key Stories Impacting Qualcomm

Investors following QCOM have been watching these stories:

• Positive Sentiment: CEO Cristiano Amon reaffirmed Qualcomm’s targets of $5 billion in data-center revenue in fiscal 2027 and $15 billion in fiscal 2029, saying the company is confident in the opportunity and does not see an AI correction affecting its plans. That confidence may bolster the long-term growth case. Qualcomm CEO on $15B data-center goal
• Positive Sentiment: Amon called Qualcomm’s 5G partnership with SpaceX a “great partnership” that could drive innovation, adding a potential new avenue for the company’s network technology. The deal’s commercial impact is not yet established. Qualcomm CEO on SpaceX deal
• Negative Sentiment: Handset weakness and uncertainty around the data-center opportunity have also weighed on sentiment, with one report noting a sharp recent decline in the stock despite an earnings beat. Qualcomm’s decline despite earnings beat

Wall Street Analyst Weigh In

A number of research analysts have weighed in on QCOM shares. JPMorgan Chase & Co. lowered their target price on Qualcomm from $215.00 to $200.00 and set a “neutral” rating on the stock in a report on Thursday, November 5th. Benchmark reduced their price target on shares of Qualcomm from $300.00 to $270.00 and set a “buy” rating for the company in a research report on Monday, July 27th. Cantor Fitzgerald reduced their price target on shares of Qualcomm from $200.00 to $165.00 and set a “neutral” rating for the company in a research report on Monday, July 27th. Rosenblatt Securities lowered their price objective on shares of Qualcomm from $235.00 to $205.00 and set a “buy” rating on the stock in a research note on Thursday, November 5th. Finally, Royal Bank Of Canada raised their price objective on shares of Qualcomm from $160.00 to $180.00 and gave the stock a “sector perform” rating in a report on Wednesday, September 9th. Three equities 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Qualcomm presently has a consensus rating of “Hold” and a consensus target price of $197.13.

Qualcomm Trading Up 0.3%

The stock has a market capitalization of $189.54 billion, a PE ratio of 13.95, a PEG ratio of 1.92 and a beta of 1.70. The stock’s 50 day moving average price is $178.51 and its 200-day moving average price is $169.78. The company has a quick ratio of 1.14, a current ratio of 1.86 and a debt-to-equity ratio of 0.42.

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

Qualcomm Dividend Announcement

The business also recently announced 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 2.1%. The ex-dividend date of this dividend is Thursday, December 3rd. Qualcomm’s payout ratio is 28.98%.

Insider Transactions at Qualcomm

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $182.85, for a total transaction of $457,125.00. Following the completion of the transaction, the executive vice president owned 18,184 shares of the company’s stock, valued at $3,324,944.40. This represents a 12.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the firm’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $200.00, for a total value of $2,000,000.00. Following the transaction, the chief executive officer owned 177,568 shares of the company’s stock, valued at approximately $35,513,600. The trade was a 5.33% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 32,520 shares of company stock valued at $6,101,411. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

Hedge funds have recently made changes to their positions in the company. ABS Investment Management LLC purchased a new position in shares of Qualcomm in the second quarter valued at $34,000. ABS Direct Equity Fund LLC purchased a new stake in Qualcomm during the second quarter valued at $34,000. Mizuho Securities Co. Ltd. purchased a new stake in Qualcomm during the third quarter valued at $35,000. Team Financial Group LLC bought a new position in Qualcomm during the third quarter valued at $38,000. Finally, Burk Holdings LLC lifted its position in Qualcomm by 191.7% during the second quarter. Burk Holdings LLC now owns 210 shares of the wireless technology company’s stock valued at $39,000 after purchasing an additional 138 shares during the last quarter. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

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.