Qualcomm (NASDAQ:QCOM) Trading Down 3.9% – What’s Next?

Qualcomm Incorporated (NASDAQ:QCOM) shares dropped 3.9% during mid-day trading on Tuesday . The company traded as low as $191.02 and last traded at $195.61. Approximately 19,358,676 shares were traded during trading, an increase of 28% from the average daily volume of 15,158,144 shares. The stock had previously closed at $203.64.

Wall Street Analysts Forecast Growth

QCOM has been the topic of several research analyst reports. Loop Capital upgraded Qualcomm from a “hold” rating to a “buy” rating and set a $185.00 target price on the stock in a report on Tuesday, February 24th. Bank of America assumed coverage on Qualcomm in a research note on Tuesday, March 10th. They issued an “underperform” rating and a $145.00 target price on the stock. Benchmark raised their price target on Qualcomm from $200.00 to $225.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. TD Cowen raised their price target on Qualcomm from $150.00 to $200.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Finally, Freedom Capital downgraded Qualcomm from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Qualcomm currently has an average rating of “Hold” and an average target price of $181.79.

Qualcomm Stock Performance

The company has a market cap of $206.17 billion, a P/E ratio of 21.26, a price-to-earnings-growth ratio of 24.96 and a beta of 1.49. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The company has a 50 day moving average price of $148.69 and a 200-day moving average price of $157.80.

Qualcomm (NASDAQ:QCOM) last issued its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, topping analysts’ consensus estimates of $2.56 by $0.09. The business had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.Qualcomm’s quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, equities analysts expect that Qualcomm Incorporated will post 7.99 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be paid a dividend of $0.92 per share. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, June 4th. Qualcomm’s payout ratio is 40.00%.

Qualcomm announced that its board has approved a stock repurchase program on Tuesday, March 17th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the wireless technology company to reacquire up to 14.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Qualcomm

In other news, CEO Cristiano R. Amon sold 10,000 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the completion of the sale, the chief executive officer directly owned 197,568 shares of the company’s stock, valued at $35,562,240. This represents a 4.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total value of $529,750.00. Following the sale, the executive vice president directly owned 28,184 shares of the company’s stock, valued at $5,972,189.60. The trade was a 8.15% 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. Insiders sold a total of 18,477 shares of company stock valued at $3,268,316 in the last 90 days. Corporate insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On Qualcomm

Several institutional investors and hedge funds have recently bought and sold shares of the company. Basepoint Wealth LLC grew its holdings in Qualcomm by 1.8% during the first quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company’s stock valued at $429,000 after purchasing an additional 59 shares during the period. Greykasell Wealth Strategies Inc. boosted its holdings in shares of Qualcomm by 1.5% in the third quarter. Greykasell Wealth Strategies Inc. now owns 4,126 shares of the wireless technology company’s stock worth $686,000 after acquiring an additional 61 shares during the period. Certified Advisory Corp boosted its holdings in shares of Qualcomm by 0.6% in the third quarter. Certified Advisory Corp now owns 10,085 shares of the wireless technology company’s stock worth $1,678,000 after acquiring an additional 62 shares during the period. ProVise Management Group LLC boosted its holdings in shares of Qualcomm by 2.6% in the third quarter. ProVise Management Group LLC now owns 2,560 shares of the wireless technology company’s stock worth $426,000 after acquiring an additional 64 shares during the period. Finally, Baker Tilly Wealth Management LLC boosted its holdings in shares of Qualcomm by 1.0% in the fourth quarter. Baker Tilly Wealth Management LLC now owns 6,401 shares of the wireless technology company’s stock worth $1,095,000 after acquiring an additional 64 shares during the period. 74.35% of the stock is 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.