QUALCOMM (NASDAQ:QCOM) Stock Price Down 0.5% - Should You Sell?

QUALCOMM Incorporated (NASDAQ:QCOM) saw a dip of 0.5% in its stock price during midday trading on Tuesday. The shares reached a low of $150.27 before settling at $152.89 by the end of the session. Trading volume was about 1,001,051 shares, which is significantly lower than the average daily volume of 8,575,489 shares. The previous closing price was $153.61.

Analyst Recommendations

A number of analysts have recently provided their insights on QUALCOMM stock. Mizuho revised its target price for QUALCOMM from $245.00 down to $215.00 while maintaining an "outperform" rating as of January 7th. Meanwhile, Cantor Fitzgerald kept a "neutral" rating with a target price of $160.00 since February 6th. Melius Research initiated coverage on December 9th, giving a "hold" rating and a price objective of $180.00. Conversely, Rosenblatt Securities maintained a "buy" rating, setting a heightened price objective of $250.00 since February 6th. Barclays also cut their target from $200.00 to $185.00, expressing an "overweight" rating in a report issued on January 17th. In summary, there is a blend of opinion on this stock, where one analyst has a sell recommendation, while fourteen analysts rate it as hold and fifteen as buy. The consensus rating remains a "Moderate Buy" with an average target price of $205.32.

Stock Performance Insights

QUALCOMM's performance indicates some significant indicators. The stock has a 50-day moving average at $163.94 alongside a 200-day moving average of $163.74. The debt-to-equity ratio stands at 0.49, with quick and current ratios showing healthy figures at 1.99 and 2.62, respectively. With a market cap of $167.22 billion, QUALCOMM's price-to-earnings ratio is listed at 16.16, and its PEG ratio is at 2.01. The stock has a beta of 1.28, indicating moderate volatility.

In its last earnings report on February 5th, QUALCOMM posted earnings per share (EPS) of $2.86, slightly falling short of analysts' consensus estimates of $2.93 by $0.07. The company's net margin is reported at 25.94%, while the return on equity stands at an impressive 39.51%. Analysts predict that QUALCOMM will achieve EPS of 9.39 for the current year.

Dividend Announcement

In recent news, QUALCOMM staged a quarterly dividend which was distributed on March 27th. The dividend of $0.85 was paid to shareholders who were on record as of March 6th, leading to an annualized dividend of $3.40 and a yield of 2.25%. This dividend reflects a payout ratio of 36.32%.

Insider Sales Activity

Recent transactions highlight some insider activities within QUALCOMM. On February 21st, CAO Neil Martin disposed of 744 shares at an average price of $174.83, totaling around $130,073.52. Following the sale, he retains 461 shares valued at about $80,596.63, representing a decrease of 61.74% in his holdings. Additionally, CFO Akash J. Palkhiwala sold 3,000 shares on February 12th for a total of $509,400. Following this transaction, he holds 63,115 shares worth approximately $10,716,927, reflecting a marked 4.54% reduction in his share count. To date, corporate insiders have sold a total of 27,968 shares valued at $4,685,077 in the past three months, with insiders owning 0.08% of the stock.

Institutional Investment Trends

On the institutional front, multiple hedge funds and institutional investors have adjusted their positions in QUALCOMM. In the fourth quarter, Nordea Investment Management AB increased its stake in QUALCOMM by 39.7%, now owning 1,841,103 shares worth $284,708,000. Similarly, China Universal Asset Management Co. Ltd. raised its holding by 21.9%, owning 27,596 shares valued at $4,239,000. FNY Investment Advisers LLC entered a new position worth about $2,058,000 in QUALCOMM during the same quarter. Notably, Burney Co. expanded its stake dramatically by 665.6%, while Howard Bailey Securities LLC also acquired a new stake. On the whole, institutional and hedge fund investors control approximately 74.35% of QUALCOMM's stock.

Company Overview

QUALCOMM Incorporated specializes in developing and commercializing foundational technologies for the wireless industry on a global scale. The company comprises three main segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment focuses on creating integrated circuits and system software that leverage 3G, 4G, 5G, and other technologies for various applications including voice and data communications, networking, computing, and multimedia.

Conclusion

As QUALCOMM navigates through its current stock performance, analysts' mixed reviews and insider activity present a complex view of the company. Investors may weigh these insights before making decisions about whether to hold or sell their shares.

QUALCOMM, Stocks, Trading