Candriam S.C.A. has reduced its stake in QUALCOMM Incorporated (NASDAQ: QCOM) by 18.5% during the third quarter, as revealed in its recent filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 340,908 shares of the wireless technology company, following the sale of 77,418 shares during the period. As of the latest SEC report, Candriam’s holdings in QUALCOMM are valued at approximately $56.71 million.
Several other institutional investors have also adjusted their positions in QUALCOMM. Brighton Jones LLC increased its stake by a remarkable 116.6% in the fourth quarter, bringing its total to 17,356 shares worth $2.67 million. Revolve Wealth Partners LLC raised its stake by 15.4%, now owning 2,542 shares valued at $391,000. Additionally, Sivia Capital Partners LLC boosted its holdings by 44.3%, resulting in ownership of 3,325 shares worth $530,000.
The adjustments do not end there. JFS Wealth Advisors LLC increased its position by 16.4% during the same quarter, holding 1,691 shares valued at $269,000. Matrix Asset Advisors Inc. also raised its stake by 8.9%, now owning 207,733 shares valued at approximately $33.08 million. Altogether, institutional investors and hedge funds now control 74.35% of QUALCOMM’s stock.
Market Impact and Analyst Sentiment
This week, various news stories have influenced sentiment regarding QUALCOMM. The company reported an adjusted earnings per share (EPS) of $3.50 for its first quarter, exceeding analysts’ expectations. This performance was driven by strong demand in automotive and handset markets, prompting analysts at several firms to maintain positive outlooks despite cutting price targets. For instance, Argus lowered its target to $180, while JPMorgan set a new target at $185.
The overall market view remains mixed, with a consensus rating of “Hold” from brokerages as they reassess future visibility. This fragmented guidance may lead to increased volatility until clarity regarding memory supply issues emerges. Analysts have noted that QUALCOMM’s stock has returned to 2020 price levels, making it extremely oversold, which could result in short-term price increases even if the fundamental outlook remains under pressure.
Conversely, management’s warning about memory shortages limiting handset shipments has created a negative sentiment surrounding the company. Following this cautionary outlook, some analysts, including Evercore and Bank of America, have reduced their price targets, raising concerns about potential downside risks if these issues persist.
Stock Performance and Future Expectations
On Monday, QUALCOMM’s shares opened at $137.34. The company boasts a quick ratio of 1.83, a current ratio of 2.51, and a debt-to-equity ratio of 0.64. Over the past twelve months, the stock has ranged from a low of $120.80 to a high of $205.95. With a market capitalization of $146.54 billion and a price-to-earnings (P/E) ratio of 28.38, QUALCOMM continues to attract significant interest from investors.
The company recently announced a quarterly dividend of $0.89, scheduled for payment on March 26, 2024, to shareholders on record as of March 5, 2024. This represents an annualized dividend of $3.56, yielding 2.6%, with a payout ratio currently at 73.55%.
In insider trading activities, EXECUTIVE VICE PRESIDENT Alexander H. Rogers sold 15,917 shares on December 16, 2023, for a total of approximately $2.83 million. Another executive, Ann C. Chaplin, sold 7,180 shares in the same period, valued at around $1.28 million. Collectively, insiders have sold around 43,017 shares worth approximately $7.46 million in the last quarter.
Founded in 1985 and headquartered in San Diego, California, QUALCOMM Incorporated is a leading global semiconductor and telecommunications equipment company. It is known for its innovative wireless technologies and plays a crucial role in the development of digital cellular standards, including CDMA and subsequent generations. The company’s diverse portfolio includes system-on-chip (SoC) platforms under the Snapdragon brand and various connectivity solutions for automotive, IoT, and networking applications.
