GAMMA Investing LLC has reduced its stake in QUALCOMM Incorporated, a prominent player in the wireless technology sector, by 7.4% during the second quarter of 2023. According to the firm’s recent Form 13F filing with the Securities and Exchange Commission (SEC), GAMMA now holds 19,662 shares following the sale of 1,579 shares during this period. The valuation of GAMMA’s holdings in QUALCOMM stands at approximately $3,131,000.
Multiple institutional investors have adjusted their positions in QUALCOMM, reflecting a broader trend of portfolio rebalancing. For instance, Atlantic Edge Private Wealth Management LLC increased its stake in QUALCOMM by 70.0% in the first quarter, bringing its total to 170 shares valued at $26,000. Similarly, Vermillion & White Wealth Management Group LLC raised its position by 122.4%, acquiring an additional 93 shares during the same timeframe, now totaling 169 shares also worth $26,000.
Other notable transactions include WFA Asset Management Corp, which purchased a new stake valued at approximately $27,000, and Mascagni Wealth Management Inc., which acquired a position worth about $30,000. Wood Tarver Financial Group LLC also entered the market with a new stake valued at around $31,000. Institutional investors now own 74.35% of QUALCOMM’s stock.
Analyst Ratings and Market Movements
Brokerage firms have recently issued various ratings for QUALCOMM shares. Rosenblatt Securities reaffirmed a “buy” rating with a price target of $225.00 as of July 31, 2023. Conversely, Piper Sandler lowered its target from $190.00 to $175.00 while maintaining an “overweight” rating. Citigroup also reiterated a “hold” rating on July 17, 2023. Notably, Arete upgraded QUALCOMM from a “neutral” to a “buy” rating, setting a price target of $200.00.
Overall, one analyst has designated the stock with a Strong Buy rating, while twelve analysts assigned it a Buy rating, ten gave it a Hold rating, and one designated it a Sell rating. The consensus rating for QUALCOMM stands at “Moderate Buy” with an average price target of $182.82.
Insider Transactions
In related news, insider trading activity has also been notable. On September 12, 2023, Chief Accounting Officer Patricia Y. Grech sold 273 shares at an average price of $161.42, totaling approximately $44,067.66. After this transaction, Grech’s remaining shares were valued at $65,213.68, marking a 40.32% decrease in her position.
Additionally, Chief Financial Officer Akash J. Palkhiwala sold 3,333 shares on September 2, 2023, at an average price of $156.86, generating about $522,814.38. Post-sale, Palkhiwala holds 39,874 shares valued at approximately $6,254,635.64, reflecting a 7.71% reduction in his stake. In total, insiders have sold 12,899 shares of QUALCOMM stock valued at around $1,992,121 over the last 90 days.
Stock Performance Overview
On the market, shares of QUALCOMM (NASDAQ: QCOM) opened at $166.85 on Monday. The stock has experienced fluctuations, with a fifty-two week low of $120.80 and a high of $182.10. Currently, QUALCOMM has a market capitalization of $180.03 billion, a P/E ratio of 16.09, and a P/E/G ratio of 2.41. The company’s debt-to-equity ratio stands at 0.54, with a quick ratio of 2.38 and a current ratio of 3.19.
In its recent quarterly earnings report, released on July 30, 2023, QUALCOMM reported an earnings per share (EPS) of $2.77, surpassing the consensus estimate of $2.71. The company generated $10.37 billion in revenue, slightly exceeding analyst expectations of $10.33 billion. QUALCOMM’s net margin was recorded at 26.77%, with a return on equity of 40.35%. Notably, this revenue figure marks a 10.4% increase compared to the previous year.
Looking ahead, QUALCOMM has set its Q4 2025 guidance at 2.750-2.950 EPS. Analysts project that the company will post an average of 9.39 EPS for the current fiscal year.
Dividend Announcement
Furthermore, QUALCOMM has declared a quarterly dividend of $0.89 per share, scheduled for payment on September 25, 2023. Investors of record on September 4, 2023, will receive this dividend, which represents an annualized yield of 2.1%. The ex-dividend date is also set for September 4, 2023. QUALCOMM’s current payout ratio is recorded at 34.33%.
Company Profile
QUALCOMM Incorporated is engaged in the development and commercialization of foundational technologies for the global wireless industry. It operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment is responsible for developing and supplying integrated circuits and system software for applications in wireless communications, networking, computing, multimedia, and position location products.
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