Qualcomm (NASDAQ:QCOM) Trading Up 9.3% – Here’s Why
by Danessa Lincoln · The Markets DailyQualcomm Incorporated (NASDAQ:QCOM – Get Free Report)’s share price traded up 9.3% on Monday . The stock traded as high as $195.31 and last traded at $194.23. Approximately 18,206,548 shares were traded during mid-day trading, an increase of 16% from the average session volume of 15,722,643 shares. The stock had previously closed at $177.72.
Key Qualcomm News
Here are the key news stories impacting Qualcomm this week:
- Positive Sentiment: Qualcomm, Lumentum and Corning are showcasing an optical die-to-die interconnect designed for AI systems. The demonstration supports Qualcomm’s effort to participate in data-center and AI infrastructure spending, broadening its growth story beyond handsets. Lumentum, Qualcomm, Corning to Showcase Optical D2D Interconnect for AI
- Positive Sentiment: Investor enthusiasm was amplified ahead of Qualcomm’s Snapdragon Summit, where the company is expected to provide updates on its smartphone-chip roadmap and potentially its broader AI strategy. Qualcomm stock jumps as AI rally returns ahead of Snapdragon Summit
- Positive Sentiment: Lower oil prices and Treasury yields helped revive appetite for growth-oriented technology and semiconductor stocks, providing a favorable market backdrop for QCOM. Qualcomm stock jumps as AI rally returns ahead of Snapdragon Summit
- Positive Sentiment: Investors are increasingly focused on Qualcomm’s automotive and data-center opportunities. Management expects two custom data-center programs to begin generating revenue in the December quarter, potentially helping offset a shrinking Apple-related business. Can Cars And Data Centers Carry Qualcomm Stock Past Apple?
- Neutral Sentiment: Prospects for more successful U.S.-China trade discussions could reduce tariff risks for semiconductor companies and benefit China-exposed technology businesses, although the eventual policy impact remains uncertain. U.S.-China Talks Seem Successful
- Negative Sentiment: Risks remain from Qualcomm’s reliance on smartphones, pressure from the declining Apple business and the stock’s elevated expectations after a strong longer-term advance. Recent volatility and bearish commentary underscore concerns that new automotive and data-center revenue may take time to scale. Bear of the Day: Qualcomm
Analysts Set New Price Targets
Several research analysts have recently commented on the company. Zacks Research lowered Qualcomm from a “hold” rating to a “strong sell” rating in a research report on Tuesday, September 15th. Dbs Bank raised Qualcomm to a “moderate buy” rating in a research note on Tuesday, July 7th. Raymond James Financial assumed coverage on Qualcomm in a report on Thursday, June 25th. They set a “strong-buy” rating for the company. KeyCorp reaffirmed a “sector weight” rating on shares of Qualcomm in a research report on Wednesday, September 9th. Finally, Craig Hallum lowered shares of Qualcomm from a “buy” rating to a “hold” rating in a research note on Thursday, June 25th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Qualcomm currently has a consensus rating of “Hold” and an average price target of $204.10.
Read Our Latest Analysis on QCOM
Qualcomm Stock Up 9.3%
The firm has a market cap of $203.99 billion, a PE ratio of 22.48, a price-to-earnings-growth ratio of 3.70 and a beta of 1.68. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The business has a 50-day moving average price of $168.11 and a two-hundred day moving average price of $172.45.
Qualcomm (NASDAQ:QCOM – Get Free Report) last released its earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.02). Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The company had revenue of $9.95 billion during the quarter, compared to analysts’ expectations of $9.69 billion. During the same quarter last year, the business posted $2.77 earnings per share. The company’s revenue for the quarter was down 4.0% on a year-over-year basis. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, equities research analysts expect that Qualcomm Incorporated will post 7.74 EPS for the current year.
Qualcomm Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is presently 42.59%.
Insider Transactions at Qualcomm
In related news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $182.85, for a total value of $457,125.00. Following the completion of the transaction, the executive vice president owned 18,184 shares in the company, valued at $3,324,944.40. The trade was a 12.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $147.04, for a total transaction of $470,528.00. Following the transaction, the executive vice president owned 36,535 shares of the company’s stock, valued at $5,372,106.40. This trade represents a 8.05% 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. Over the last ninety days, insiders sold 11,533 shares of company stock valued at $1,924,969. 0.05% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Qualcomm
Several institutional investors have recently modified their holdings of the company. Your Advocates Ltd. LLP acquired a new position in shares of Qualcomm during the 1st quarter worth about $26,000. Caitong International Asset Management Co. Ltd raised its position in shares of Qualcomm by 17,000.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after acquiring an additional 170 shares in the last quarter. Commonwealth Retirement Investments LLC acquired a new stake in shares of Qualcomm during the 4th quarter worth about $32,000. ABS Investment Management LLC purchased a new stake in Qualcomm during the second quarter worth approximately $34,000. Finally, ABS Direct Equity Fund LLC purchased a new stake in Qualcomm during the second quarter worth approximately $34,000. 74.35% of the stock is owned by hedge funds and other institutional investors.
About Qualcomm
Qualcomm Incorporated (NASDAQ: QCOM) is a technology company that develops wireless communications technologies, semiconductors and related intellectual property. Headquartered in San Diego, California, the company serves customers and partners worldwide across the mobile, automotive, consumer electronics and industrial markets.
Through its Qualcomm CDMA Technologies (QCT) business, Qualcomm designs and supplies integrated circuits, system software and hardware platforms. Its products include Snapdragon mobile platforms, 5G and other wireless modems, radio-frequency components, connectivity solutions, processors and artificial intelligence technologies.