Qualcomm (NASDAQ:QCOM) Cut to Hold at Freedom Broker

Freedom Broker cut shares of Qualcomm (NASDAQ:QCOM) from a buy rating to a hold rating in a research report report published on Monday morning, MarketBeat Ratings reports. Freedom Broker currently has $185.00 target price on the wireless technology company’s stock, down from their prior target price of $200.00.

Several other analysts also recently weighed in on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a report on Monday, September 21st. Freedom Capital raised Qualcomm from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 7th. Barclays decreased their price objective on shares of Qualcomm from $180.00 to $150.00 and set an “underweight” rating on the stock in a report on Thursday, November 5th. Robert W. Baird set a $320.00 price target on Qualcomm in a research report on Thursday, November 5th. Finally, UBS Group cut their price objective on Qualcomm from $185.00 to $180.00 and set a “neutral” rating for the company in a research report on Thursday, November 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twenty-one have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Qualcomm presently has a consensus rating of “Hold” and an average price target of $197.13.

Qualcomm Stock Performance

QCOM opened at $176.57 on Monday. Qualcomm has a twelve month low of $121.99 and a twelve month high of $259.92. The firm has a market capitalization of $188.93 billion, a PE ratio of 22.45, a PEG ratio of 1.92 and a beta of 1.70. The firm’s 50-day moving average price is $178.51 and its 200 day moving average price is $169.78. The company has a current ratio of 1.86, a quick ratio of 1.14 and a debt-to-equity ratio of 0.42.

Qualcomm (NASDAQ:QCOM) last posted its earnings results on Wednesday, November 4th. The wireless technology company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.16 by $0.01. Qualcomm had a return on equity of 30.62% and a net margin of 31.60%. The company had revenue of $10.44 billion during the quarter, compared to analysts’ expectations of $10.12 billion. During the same quarter last year, the firm earned $3.00 earnings per share. The firm’s quarterly revenue was down 8.4% compared to the same quarter last year. As a group, sell-side analysts expect that Qualcomm will post 7.15 EPS for the current fiscal year.

Qualcomm Announces Dividend

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 given a dividend of $0.92 per share. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.1%. Qualcomm’s dividend payout ratio (DPR) is presently 28.98%.

Insider Buying and Selling

In related news, CAO Patricia Y. Grech sold 625 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the sale, the chief accounting officer owned 208 shares in the company, valued at $33,872.80. This represents a 75.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ann C. Chaplin sold 1,827 shares of the firm’s stock in a transaction that occurred on Friday, October 16th. The stock was sold at an average price of $174.75, for a total value of $319,268.25. Following the completion of the sale, the executive vice president directly owned 25,770 shares in the company, valued at approximately $4,503,307.50. This trade represents a 6.62% 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 quarter, insiders have sold 32,520 shares of company stock worth $6,101,411. 0.05% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. JFS Wealth Advisors LLC increased its holdings in shares of Qualcomm by 3.4% during the second quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company’s stock valued at $295,000 after purchasing an additional 53 shares during the period. Canopy Partners LLC grew its position in Qualcomm by 1.4% in the third quarter. Canopy Partners LLC now owns 4,148 shares of the wireless technology company’s stock worth $763,000 after buying an additional 56 shares during the last quarter. Wall Street Financial Group Inc. grew its holdings in shares of Qualcomm by 1.9% in the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company’s stock worth $564,000 after acquiring an additional 57 shares during the last quarter. Sunbeam Capital Management LLC raised its holdings in 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. Finally, LaFleur & Godfrey LLC boosted its stake in Qualcomm by 3.6% in the 3rd quarter. LaFleur & Godfrey LLC now owns 1,656 shares of the wireless technology company’s stock worth $305,000 after purchasing an additional 58 shares during the period. Institutional investors own 74.35% of the company’s stock.

Recent Qualcomm Headlines

These are some of the QCOM headlines that stood out recently:

• Positive Sentiment: ETFs bought $293.8 million of Qualcomm shares on Nov. 9, with 35 funds buying and 17 selling, pointing to net institutional demand. Article
• Negative Sentiment: Freedom Broker downgraded QCOM from Buy to Hold and cut its price target to $185 from $200, citing expectations that investment in new growth businesses will pressure margins for longer than expected. Article
• Negative Sentiment: Qualcomm’s handset business remains a concern as it shrinks, leaving investors to assess whether automotive and other newer businesses can offset pressure in the company’s core market. Article

About Qualcomm

Qualcomm Incorporated is a technology company that develops wireless communications technologies and semiconductor products. Its chips and related systems are used in smartphones and other connected devices, with products spanning mobile processors, modem-radio frequency systems, and connectivity solutions. The Snapdragon brand includes platforms for mobile devices as well as computing, automotive, and extended-reality applications. Qualcomm also develops technology for automotive systems and the Internet of Things, including connectivity and processing solutions for vehicles, industrial equipment, and consumer devices.