QUALCOMM (NASDAQ: QCOM) received a positive boost from UBS Group, which increased its target price for the stock from $175.00 to $185.00 in a research note published on Thursday. This adjustment reflects the firm’s current neutral rating on the wireless technology company.
Several other financial institutions have also weighed in on QUALCOMM’s stock performance. On the same day, Rosenblatt Securities reaffirmed a “buy” rating, setting a target price of $225.00. Piper Sandler raised its price target from $175.00 to $200.00 and issued an “overweight” rating, while Bank of America increased its target from $200.00 to $215.00, maintaining a “buy” rating. Meanwhile, Wall Street Zen downgraded QUALCOMM from a “buy” to a “hold” rating earlier this month. Citigroup also increased its price objective from $170.00 to $175.00, keeping a neutral stance on the stock.
Analyst sentiment on QUALCOMM remains predominantly positive, with one analyst assigning a “Strong Buy” rating, fourteen issuing “Buy” ratings, eight categorizing it as a “Hold,” and one recommending a “Sell.” According to data from MarketBeat.com, QUALCOMM holds a consensus rating of “Moderate Buy” with an average price target of $190.38.
Quarterly Earnings and Dividend Announcement
QUALCOMM recently reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $3.00, surpassing the consensus estimate of $2.87 by $0.13. The company’s revenue reached $11.27 billion, exceeding analyst expectations of $10.74 billion. The firm achieved a net margin of 26.77% and a return on equity of 40.35%. Comparatively, revenue increased by 10% year-over-year.
Looking ahead, QUALCOMM has set its guidance for Q1 2026 at an EPS range of 3.300-3.500. Analysts project an average EPS of 9.39 for the current fiscal year, indicating robust future growth.
In conjunction with its earnings report, QUALCOMM announced a quarterly dividend of $0.89, payable on December 18, 2023. Shareholders on record as of December 4, 2023 will receive this payment. This dividend equates to an annualized figure of $3.56 and represents a yield of 2.1%, with a payout ratio of 34.33%.
Insider Trading and Institutional Holdings
In other developments, CEO Cristiano R. Amon sold 150,000 shares of QUALCOMM on October 1, 2023, at an average price of $165.56. This transaction totaled approximately $24.83 million and reduced his holdings by 50.12%. Following the sale, Amon retains 149,304 shares valued at nearly $24.72 million. Another significant insider transaction occurred when Chief Accounting Officer Neil Martin sold 791 shares on August 21, 2023, for about $122,462.62, reflecting a 41.70% decrease in his position.
Over the last three months, insiders have sold a total of 163,169 shares valued at approximately $26.98 million. Currently, insiders hold 0.08% of QUALCOMM’s stock.
Institutional investors have also modified their stakes in QUALCOMM. Brighton Jones LLC increased its holdings by 116.6% during the fourth quarter, now owning 17,356 shares worth about $2.67 million. Other firms, including Revolve Wealth Partners LLC and Stratos Investment Management LLC, have also raised their investments, indicating strong institutional confidence in QUALCOMM. As of now, institutional investors collectively own 74.35% of the stock.
QUALCOMM continues to play a crucial role in the wireless technology sector, focusing on the development and commercialization of foundational technologies. It operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI), ensuring its position as a leader in the industry.
