Qualcomm (NASDAQ:QCOM) Stock Price Down 1.9% – Should You Sell?

Qualcomm Incorporated (NASDAQ:QCOM) shares fell 1.9% during mid-day trading on Monday . The stock traded as low as $215.50 and last traded at $221.90. 18,013,839 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 16,505,436 shares. The stock had previously closed at $226.11.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm agreed to buy AI software startup Modular for about $3.9 billion, a deal aimed at improving AI performance, broadening its software capabilities, and reducing reliance on smartphones. Reuters: Qualcomm to buy AI startup Modular
• Positive Sentiment: Qualcomm is reportedly in talks to provide custom chip-design services to ByteDance, which could create another non-smartphone growth avenue if finalized. Reuters: Qualcomm in talks with ByteDance
• Neutral Sentiment: Qualcomm’s Investor Day is expected to focus on its push into AI data center chips, but analysts note it is a late entrant in a very crowded AI market, which may limit enthusiasm. Reuters: Qualcomm bets on AI chips
• Neutral Sentiment: Recent commentary suggests Qualcomm’s AI pivot could be attractive over time, but some analysts remain cautious heading into the company’s AI presentation. Benzinga: Analyst cautious on Qualcomm
• Negative Sentiment: The stock has also been pressured by broader tech selling and worries that Qualcomm’s AI ambitions may take time to translate into meaningful revenue, creating execution risk. Invezz: Qualcomm eyes Modular AI deal as stock falls

Analysts Set New Price Targets

QCOM has been the topic of a number of recent analyst reports. Oppenheimer downgraded shares of Qualcomm from a “market perform” rating to a “market perform” rating in a research report on Friday, May 8th. DZ Bank downgraded shares of Qualcomm from a “buy” rating to a “hold” rating and set a $195.00 target price for the company. in a research note on Friday, May 8th. Melius Research set a $220.00 target price on Qualcomm in a report on Monday, May 18th. Roth Mkm assumed coverage on Qualcomm in a research note on Friday, May 8th. They issued a “buy” rating on the stock. Finally, Morgan Stanley initiated coverage on Qualcomm in a report on Friday, May 8th. They set an “overweight” rating for the company. Fifteen investment analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Qualcomm presently has a consensus rating of “Hold” and an average target price of $191.90.

Qualcomm Price Performance

The company’s 50 day moving average is $197.22 and its 200 day moving average is $167.32. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $206.70 billion, a price-to-earnings ratio of 21.32, a price-to-earnings-growth ratio of 27.57 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM) last released its quarterly earnings data 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. The company had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. Qualcomm’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Research analysts anticipate that Qualcomm Incorporated will post 7.97 EPS for the current fiscal year.

Qualcomm Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be given a $0.92 dividend. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. 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 1.9%. Qualcomm’s payout ratio is currently 40.00%.

Qualcomm declared that its board has initiated a share repurchase program on Tuesday, March 17th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the wireless technology company to buy up to 14.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Transactions at Qualcomm

In related news, CAO Patricia Y. Grech sold 829 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $201.77, for a total transaction of $167,267.33. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the firm’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the transaction, the chief executive officer directly owned 197,568 shares in the company, valued at $35,562,240. The trade was a 4.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 21,806 shares of company stock worth $3,928,958. 0.05% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Basepoint Wealth LLC increased its stake in 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 during the last quarter. Certified Advisory Corp lifted its stake in shares of Qualcomm by 0.6% in 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 worth $426,000 after purchasing an additional 64 shares during the period. Baker Tilly Wealth Management LLC grew its holdings in shares of Qualcomm by 1.0% during 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. Finally, Modern Wealth Management LLC increased its position in shares of Qualcomm by 0.5% during the 1st quarter. Modern Wealth Management LLC now owns 13,704 shares of the wireless technology company’s stock worth $1,744,000 after purchasing an additional 64 shares during the last quarter. 74.35% of the stock is owned by hedge funds and other institutional investors.

Qualcomm Company Profile

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.