QUALCOMM (NASDAQ:QCOM) Shares Rise 1.1% - Is It Still a Good Investment?

QUALCOMM Incorporated (NASDAQ:QCOM) experienced an increase of 1.1% on Friday, with the stock reaching a high of $156.18 before closing at $155.26. During the trading session, 1,041,910 shares changed hands, marking a significant drop of 64% from the average trading volume of 2,917,179 shares. The previous closing price stood at $153.64.

Analyst Ratings and Insights

Recent commentary from analysts indicates varying opinions on QUALCOMM. Melius Research started its coverage of the company on December 9, assigning a "hold" rating with a target price of $180.00. Conversely, TD Cowen upgraded QUALCOMM to a "strong-buy" rating on September 16. KeyCorp decided to downgrade the stock from an "overweight" to a "sector weight" rating on October 8. Additionally, Citigroup revised down its price target for QUALCOMM from $200.00 to $185.00 while maintaining a "neutral" rating as of October 16. Summarizing the recommendations, one analyst rates the stock as a sell, while fourteen suggest holding, fifteen recommend buying, and one offers a strong buy designation. Currently, MarketBeat shows that QUALCOMM has an average rating of "Moderate Buy" and a consensus target price of $208.00.

Stock Performance Overview

As for its stock performance, QUALCOMM has a 50-day simple moving average of $160.89 and a 200-day simple moving average of $172.78. Financial ratios reveal a quick ratio of 1.79 and a current ratio of 2.40, with a debt-to-equity ratio of 0.51. The company holds a market capitalization of $175.92 billion, a price-to-earnings (P/E) ratio of 17.61, a price/earnings to growth (PEG) ratio of 2.65, and a beta of 1.25.

QUALCOMM's last quarterly earnings report was released on November 6, achieving earnings per share (EPS) of $2.26, outperforming the consensus estimate of $2.01 by $0.25. Revenue for the quarter reached $10.24 billion, exceeding the expected $9.90 billion. The company posted an impressive return on equity of 38.81% and a net profit margin of 26.03%, and analysts project an EPS of 9.09 for the current year.

Recent Dividend Announcement

In recent news, QUALCOMM declared a quarterly dividend of $0.85, which was distributed to stockholders on December 19. Eligible stockholders as of December 5 received this dividend, which translates to an annualized value of $3.40 and a yield of 2.15%. The company's dividend payout ratio stands at 37.82%.

Insider Transactions

In insider activity, General Counsel Ann C. Chaplin sold 1,901 shares on November 4 at an average price of $165.06, totaling $313,779.06. As a result, Chaplin's ownership dropped by 13.67%, leaving her with 12,007 shares valued at approximately $1,981,875.42. Similarly, CAO Neil Martin sold 1,304 shares on November 21, with an average sale price of $155.00, amounting to $202,120.00, leading to a 93.28% decrease in ownership to just 94 shares worth about $14,570. In total, insiders have sold 26,882 shares valued at $4,314,649 in the last ninety days, representing just 0.08% of the stock held by company insiders.

Institutional Investors' Activity

Many institutional investors have adjusted their stakes in QUALCOMM recently. For instance, Paulson Wealth Management Inc. enhanced its position by 2.2% in the third quarter, acquiring 61 additional shares to reach a total of 2,791 shares valued at $475,000. Likewise, Blossom Wealth Management increased its holdings by 2.6%, while Delta Financial Advisors LLC improved its stake by 2.1%. Currently, institutional investors own approximately 74.35% of QUALCOMM shares.

Company Overview

QUALCOMM Incorporated specializes in developing and marketing foundational technologies for the wireless industry across the globe. The company is divided into three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment is responsible for creating integrated circuits and software for wireless voice and data communications, networking, and multimedia products.

QUALCOMM, stock, investment