Qualcomm (NASDAQ:QCOM) Shares Gap Down – Time to Sell?

by · The Markets Daily

Qualcomm Incorporated (NASDAQ:QCOM – Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $251.02, but opened at $233.33. Qualcomm shares last traded at $230.6680, with a volume of 5,483,232 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on QCOM shares. JPMorgan Chase & Co. upped their price target on Qualcomm from $140.00 to $160.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Summit Insights raised shares of Qualcomm from a “hold” rating to a “buy” rating in a research note on Thursday, April 30th. Cantor Fitzgerald upped their target price on shares of Qualcomm from $135.00 to $150.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. BNP Paribas Exane cut shares of Qualcomm to a “neutral” rating in a research note on Wednesday, April 29th. Finally, The Goldman Sachs Group started coverage on shares of Qualcomm in a report on Monday, March 30th. They issued a “neutral” rating and a $135.00 price target for the company. Fourteen research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $181.79.

Get Our Latest Stock Report on QCOM

Qualcomm Stock Performance

The company has a quick ratio of 1.61, a current ratio of 2.37 and a debt-to-equity ratio of 0.54. The company’s 50-day moving average is $166.07 and its two-hundred day moving average is $161.17. The company has a market capitalization of $246.29 billion, a P/E ratio of 25.39, a PEG ratio of 31.09 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM – Get Free Report) last announced its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. During the same period in the previous year, the business posted $2.85 earnings per share. Qualcomm’s revenue for the quarter was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities analysts anticipate that Qualcomm Incorporated will post 7.99 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be issued a dividend of $0.92 per share. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.6%. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. Qualcomm’s payout ratio is presently 38.70%.

Qualcomm declared that its Board of Directors has initiated a stock repurchase program on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to purchase up to 14.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Qualcomm

In other news, CEO Cristiano R. Amon sold 10,000 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer directly owned 197,568 shares in the company, valued at approximately $35,562,240. This represents a 4.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $177.82, for a total value of $569,024.00. Following the transaction, the executive vice president directly owned 39,735 shares in the company, valued at approximately $7,065,677.70. This represents a 7.45% 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 sold 19,306 shares of company stock worth $3,435,583 in the last three months. Insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

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

About Qualcomm

(Get Free Report)

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.

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