Qualcomm (NASDAQ:QCOM) Stock Jumps 5.3% on Better-Than-Expected Earnings

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price was up 5.3% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $174.00 and last traded at $173.19. 21,051,206 shares changed hands during mid-day trading, an increase of 40% from the average daily volume of 15,031,320 shares. The stock had previously closed at $164.43.

The wireless technology company reported $2.17 EPS for the quarter, topping the consensus estimate of $2.16 by $0.01. The company had revenue of $10.44 billion during the quarter, compared to analyst estimates of $10.12 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.

Qualcomm Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Thursday, December 3rd will be issued a $0.92 dividend. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. Qualcomm’s dividend payout ratio is presently 42.59%.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: SpaceX selected Qualcomm’s Dragonwing platforms and software for the terrestrial 5G network planned for Starlink Mobile in the U.S. The multiyear agreement is described as Qualcomm’s largest 5G initiative to date and could expand its infrastructure business, though the companies have not disclosed the contract’s financial value. Reuters article
• Neutral Sentiment: Qualcomm is due to report fourth-quarter results after the market closes. Options traders are anticipating a potentially large move, highlighting uncertainty around the results and outlook. TipRanks article
• Negative Sentiment: Slowing smartphone and PC sales, along with expectations of a revenue decline, could weigh on the earnings outlook. Continued weakness in handset demand is a risk because Qualcomm remains exposed to that market. AOL article

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Susquehanna increased their target price on Qualcomm from $160.00 to $185.00 and gave the company a “neutral” rating in a research note on Wednesday, October 21st. UBS Group dropped their price target on Qualcomm from $190.00 to $170.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Piper Sandler started coverage on Qualcomm in a research note on Wednesday, September 9th. They set a “neutral” rating and a $190.00 price target for the company. Evercore set a $159.00 price objective on Qualcomm in a report on Thursday, July 30th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Qualcomm in a research report on Monday, September 21st. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $205.48.

Insider Buying and Selling at Qualcomm

In other news, EVP Ann C. Chaplin sold 1,827 shares of Qualcomm stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $174.75, for a total value of $319,268.25. Following the transaction, the executive vice president owned 25,770 shares in the company, valued at approximately $4,503,307.50. The trade was a 6.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the business’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $200.00, for a total value of $2,000,000.00. Following the completion of the sale, the chief executive officer directly owned 177,568 shares of the company’s stock, valued at approximately $35,513,600. This trade represents a 5.33% 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. In the last ninety days, insiders have sold 30,258 shares of company stock valued at $5,727,616. Corporate insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On Qualcomm

Institutional investors and hedge funds have recently bought and sold shares of the stock. ABS Investment Management LLC purchased a new position in shares of Qualcomm during the 2nd quarter worth about $34,000. ABS Direct Equity Fund LLC purchased a new stake in Qualcomm in the 2nd quarter worth about $34,000. Mizuho Securities Co. Ltd. purchased a new stake in Qualcomm in the 3rd quarter worth about $35,000. Your Advocates Ltd. LLP purchased a new stake in Qualcomm in the 1st quarter worth about $26,000. Finally, Team Financial Group LLC bought a new stake in Qualcomm in the third quarter worth about $38,000. 74.35% of the stock is currently owned by institutional investors.

Qualcomm Trading Up 5.3%

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 firm has a market cap of $184.94 billion, a P/E ratio of 20.05, a P/E/G ratio of 3.65 and a beta of 1.70. The company’s 50 day simple moving average is $177.98 and its 200-day simple moving average is $169.42.

Qualcomm Company Profile

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.