Qualcomm (NASDAQ:QCOM) Trading Down 8% – Time to Sell?

Qualcomm Incorporated (NASDAQ:QCOM) was down 8% on Tuesday . The company traded as low as $198.44 and last traded at $204.13. Approximately 23,629,508 shares traded hands during trading, an increase of 43% from the average session volume of 16,523,873 shares. The stock had previously closed at $221.90.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Reports that Qualcomm is in advanced talks to buy Modular could strengthen its AI and data center strategy and support longer-term growth. Reuters: Qualcomm nearing deal for AI chip startup Modular
• Positive Sentiment: Some investors see Qualcomm as an undervalued AI play, citing its low-power chip expertise and potential to grow in edge AI and inference. Trefis: Qualcomm’s AI Pivot: Smarter Than It Looks
• Neutral Sentiment: Qualcomm’s AI ambitions are drawing bullish commentary, with some analysts calling it a value AI stock as the company expands beyond mobile chips. Yahoo Finance: Jim Cramer Discusses Qualcomm (QCOM) As A Value AI Play
• Neutral Sentiment: Qualcomm’s upcoming Investor Day is a key catalyst, but investors are waiting for management to prove its AI/data center roadmap can compete in a crowded market. Benzinga: Qualcomm AI, Data Center Opportunity Fails To Win Over Analyst
• Negative Sentiment: A broader technology selloff and profit-taking after a strong run are pressuring the shares, even as the AI story develops. Invezz: Qualcomm eyes modular AI deal as stock falls on tech selloff pressure
• Negative Sentiment: Bank of America’s underperform rating and cautious valuation stance suggest some analysts think upside may be limited from here. Benzinga: Qualcomm price target update

Analyst Upgrades and Downgrades

QCOM has been the topic of several analyst reports. The Goldman Sachs Group started coverage on shares of Qualcomm in a research note on Monday, March 30th. They issued a “neutral” rating and a $135.00 target price on the stock. Argus set a $220.00 price objective on Qualcomm in a research note on Friday, May 1st. Freedom Capital downgraded Qualcomm from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Melius Research set a $220.00 price objective on Qualcomm in a report on Monday, May 18th. Finally, Zacks Research raised Qualcomm from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Fifteen analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $191.90.

Qualcomm Price Performance

The firm has a market cap of $215.15 billion, a PE ratio of 22.19, a PEG ratio of 28.09 and a beta of 1.59. The firm has a fifty day simple moving average of $195.70 and a two-hundred day simple moving average of $167.12. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.61 and a current ratio of 2.37.

Qualcomm (NASDAQ:QCOM) last released its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. During the same quarter last year, the business earned $2.85 earnings per share. Qualcomm’s quarterly revenue was down 3.5% compared to the same quarter last year. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities analysts predict 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. Stockholders of record on Thursday, June 4th will be issued a $0.92 dividend. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. This represents a $3.68 annualized dividend and a dividend yield of 1.8%. Qualcomm’s dividend payout ratio (DPR) is 40.00%.

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

Insiders Place Their Bets

In other news, CEO Cristiano R. Amon sold 10,000 shares of the company’s stock in a transaction that occurred 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 owned 197,568 shares of the company’s stock, valued at approximately $35,562,240. This represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the business’s stock in a transaction on Monday, April 13th. The shares were sold at an average price of $130.34, for a total transaction of $325,850.00. Following the sale, the executive vice president directly owned 30,684 shares of the company’s stock, valued at $3,999,352.56. This represents a 7.53% 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. Insiders have sold 21,806 shares of company stock worth $3,928,958 over the last three months. 0.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Qualcomm

A number of institutional investors have recently modified their holdings of QCOM. Your Advocates Ltd. LLP bought a new position in shares of Qualcomm during the 1st quarter worth approximately $26,000. Richardson Financial Services Inc. boosted its stake in Qualcomm by 90.9% in the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock valued at $29,000 after acquiring an additional 80 shares in the last quarter. Torren Management LLC acquired a new stake in Qualcomm in the fourth quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd grew its holdings in Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after purchasing an additional 170 shares during the last quarter. Finally, Birchwood Financial Partners Inc. purchased a new position in Qualcomm in the fourth quarter worth $31,000. 74.35% of the stock is currently owned by institutional investors.

About Qualcomm

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.