Qualcomm (NASDAQ:QCOM) Trading Down 1.6% on Analyst Downgrade

Shares of Qualcomm Incorporated (NASDAQ:QCOM) fell 1.6% during mid-day trading on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $183.37 and last traded at $184.84. Approximately 9,506,704 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 15,534,435 shares. The stock had previously closed at $187.80.

A number of other equities research analysts have also recently weighed in on QCOM. Susquehanna cut their price objective on shares of Qualcomm from $190.00 to $160.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Morgan Stanley decreased their target price on shares of Qualcomm from $231.00 to $220.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. Melius Research set a $220.00 target price on shares of Qualcomm in a research report on Monday, May 18th. Royal Bank Of Canada raised their target price on shares of Qualcomm from $160.00 to $180.00 and gave the company a “sector perform” rating in a research note on Wednesday, September 9th. Finally, Evercore set a $159.00 price target on shares of Qualcomm in a research report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Qualcomm currently has a consensus rating of “Hold” and an average price target of $204.10.

Insider Transactions at Qualcomm

In other Qualcomm news, CAO Patricia Y. Grech sold 208 shares of the business’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $170.00, for a total value of $35,360.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the company’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $182.85, for a total transaction of $457,125.00. Following the completion of the sale, the executive vice president directly owned 18,184 shares of the company’s stock, valued at $3,324,944.40. The trade was a 12.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 11,533 shares of company stock valued at $1,924,969. Corporate insiders own 0.05% of the company’s stock.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s chief executive, Cristiano Amon, is reportedly expected to attend a September 24 meeting involving U.S. and Chinese officials, OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang. Discussions could include AI standards, safety and chip access, raising Qualcomm’s visibility in strategic AI policy discussions. Trump-Xi Dinner Next Week Brings AI Titans To The Table
• Positive Sentiment: Qualcomm has benefited from the chip-sector rally and has gained substantially over the past month. Investors are also considering growth in AI data centers, automotive chips and other non-handset markets as potential catalysts that could reduce dependence on smartphones. Qualcomm Just Rallied 18% in a Month Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off
• Neutral Sentiment: Analyst sentiment remains mixed. Qualcomm has received a consensus “Hold” rating, while one Zacks Research update cut its view from “Hold” to “Strong Sell.” This suggests the recent rally has not produced broad confidence in further upside. Qualcomm Receives Consensus Rating of Hold
• Negative Sentiment: Analysts warn that rising semiconductor costs, weaker handset demand and an unfavorable product mix could pressure margins. Apple’s shift toward in-house modem technology also threatens an important source of Qualcomm revenue. Qualcomm Faces Margin Pressure From Rising Costs
• Negative Sentiment: A separate analysis argues Qualcomm’s AI pivot faces execution and competitive risks, while another assessment says the stock appears fairly valued after its large run. These concerns may encourage profit-taking despite the company’s longer-term AI potential. Qualcomm’s AI Pivot Has a Problem Qualcomm Stock Looks Fairly Priced

Institutional Trading of Qualcomm

Hedge funds and other institutional investors have recently made changes to their positions in the business. JFS Wealth Advisors LLC lifted its stake in Qualcomm by 3.4% in the second quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company’s stock valued at $295,000 after buying an additional 53 shares during the period. Wall Street Financial Group Inc. grew its position in shares of Qualcomm by 1.9% during the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company’s stock worth $564,000 after buying an additional 57 shares during the period. Sunbeam Capital Management LLC grew its position in shares of Qualcomm by 3.7% during the 2nd quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company’s stock worth $303,000 after buying an additional 58 shares during the period. Basepoint Wealth LLC increased its stake in shares of Qualcomm by 1.8% in the 1st quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company’s stock valued at $429,000 after acquiring an additional 59 shares during the last quarter. Finally, Five Oceans Advisors increased its stake in shares of Qualcomm by 3.3% in the 2nd quarter. Five Oceans Advisors now owns 1,827 shares of the wireless technology company’s stock valued at $338,000 after acquiring an additional 59 shares during the last quarter. 74.35% of the stock is currently owned by institutional investors.

Qualcomm Stock Up 2.1%

The firm has a market capitalization of $198.19 billion, a price-to-earnings ratio of 21.84, a P/E/G ratio of 3.85 and a beta of 1.68. The business’s 50-day moving average is $168.34 and its two-hundred day moving average is $172.19. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm (NASDAQ:QCOM) last issued its quarterly earnings data 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 firm had revenue of $9.95 billion for the quarter, compared to analyst estimates of $9.69 billion. During the same quarter in the prior year, the firm posted $2.77 EPS. The firm’s revenue for the quarter was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, equities analysts anticipate that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is currently 42.59%.

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.