Rosenblatt Securities confirmed its buy rating on QUALCOMM (NASDAQ: QCOM) in a report released on October 30, 2023. The firm has set a target price of $225.00 per share for the wireless technology company. This announcement comes as part of a broader trend, with several analysts adjusting their ratings for QUALCOMM in recent weeks.
In a report dated October 25, Weiss Ratings upgraded QUALCOMM from a “hold (C+)” to a “buy (B-)” rating. Similarly, Arete Research changed its position from a “neutral” to a “buy” rating with a price target of $200.00 per share. Conversely, Piper Sandler adjusted its target price down from $190.00 to $175.00, while maintaining an “overweight” rating. On October 22, Susquehanna raised its target from $190.00 to $200.00, assigning a “positive” rating in its analysis.
Overall, investment analysts have varied opinions on QUALCOMM. Currently, one analyst rates the stock as a Strong Buy, thirteen have assigned it a Buy rating, nine have opted for Hold, and one has issued a Sell rating. According to data from MarketBeat.com, QUALCOMM holds an average rating of “Moderate Buy” and a consensus target price of $183.95.
QUALCOMM’s Recent Financial Performance
QUALCOMM’s financial results reflect a strong performance in the latest quarter. The company reported earnings of $2.77 per share for the quarter ending July 30, 2023, surpassing the consensus estimate of $2.71 by $0.06. The revenue for this period reached $10.37 billion, slightly above analysts’ expectations of $10.33 billion. Year-over-year, this marks a 10.4% increase in revenue.
The company achieved a return on equity of 40.35% and a net margin of 26.77%. In the same quarter last year, QUALCOMM earned $2.33 per share. Analysts forecast that QUALCOMM will post an earnings per share (EPS) of $9.39 for the current fiscal year.
In addition to its solid earnings report, QUALCOMM announced a quarterly dividend of $0.89 per share, scheduled for payment on December 18, 2023. Stockholders of record on December 4, 2023, will receive this dividend, which represents an annualized amount of $3.56 and a dividend yield of 2.0%. The company currently maintains a dividend payout ratio of 34.33%.
Insider Activity and Institutional Investments
Recent insider trading raises some interest regarding QUALCOMM’s stock. On August 21, 2023, Neil Martin, the Chief Accounting Officer, sold 791 shares at an average price of $154.82, amounting to a total value of $122,462.62. Following this sale, Martin’s ownership decreased to 1,106 shares, valued at approximately $171,230.92.
Similarly, Akash J. Palkhiwala, the Chief Financial Officer, sold 8,335 shares on October 20, 2023, at an average price of $166.06, with a total transaction value of $1,384,110.10. Palkhiwala now holds 36,541 shares in the company, valued at around $6,067,998.46. In total, insiders have sold 166,502 shares valued at $27,472,615 over the last ninety days, with insiders now owning 0.08% of the company’s stock.
Several institutional investors have recently modified their stakes in QUALCOMM. Atlantic Edge Private Wealth Management LLC increased its holdings by 70.0% in the first quarter, acquiring a total of 170 shares. Additionally, Vermillion & White Wealth Management Group LLC boosted its position by 122.4%, now owning 169 shares. Other notable investors include Harbor Capital Advisors Inc., which raised its stake by 72.2%, and Chung Wu Investment Group LLC, which acquired a new position valued at approximately $32,000. Overall, institutional investors and hedge funds control 74.35% of QUALCOMM’s stock.
QUALCOMM Incorporated continues to play a pivotal role in the wireless technology sector, focusing on the development and commercialization of foundational technologies. The company operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). As the market evolves, QUALCOMM remains a key player with a robust outlook.
