UG Investment Advisers Ltd. has significantly increased its stake in QUALCOMM Incorporated by 53.4% during the third quarter of 2023, according to Holdings Channel. The institutional investor acquired an additional 309,273 shares, bringing its total ownership to 888,660 shares of the wireless technology company. This notable purchase elevates QUALCOMM to comprise approximately 23.1% of UG Investment Advisers’ holdings, making it the second-largest position in their portfolio. As of the end of the latest reporting period, these holdings were valued at approximately $147,837,000.
Other investors have also adjusted their positions in QUALCOMM. Waypoint Wealth Counsel increased its stake by 2.2% during the same quarter, now owning 2,863 shares worth around $476,000 after acquiring 61 additional shares. Baron Wealth Management LLC raised its position by 4.5%, owning 1,431 shares valued at $238,000 following the purchase of 62 shares. Additionally, Avion Wealth increased its holdings by 16.7%, owning 441 shares now valued at $70,000, while Insight Advisors LLC PA raised its stake by 1.8% to hold 3,488 shares valued at $556,000. Elser Financial Planning Inc. also lifted its stake by 3.7%, bringing its ownership to 1,759 shares worth $297,000.
As it stands, institutional investors and hedge funds collectively own 74.35% of QUALCOMM’s stock.
Analysts Adjust Ratings and Price Targets
In light of recent developments, analysts have been evaluating QUALCOMM’s stock performance. The Royal Bank of Canada initiated coverage on QUALCOMM on January 14, 2024, assigning a “sector perform” rating with a target price of $180.00. Conversely, Wall Street Zen downgraded its recommendation from “buy” to “hold” in a note dated December 9, 2023. Weiss Ratings reiterated a “hold (c)” rating on December 29, and Susquehanna set a price target of $210.00 in a report released on November 6.
The consensus among ten investment analysts includes ten “buy” ratings, eight “hold” ratings, and one “sell” rating. According to MarketBeat.com, the average rating for QUALCOMM is “hold,” with a consensus target price of $191.28.
Insider Trading Activity
Recent insider trading activity has also drawn attention. On December 16, 2023, Executive Vice President Alexander H. Rogers sold 15,917 shares at an average price of $178.01, resulting in total proceeds of approximately $2,833,385.17. Following this transaction, Rogers holds 26,071 shares valued at about $4,640,898.71, representing a decrease of 37.91% in his position.
Additionally, insider Heather S. Ace sold 1,600 shares on November 7, obtaining approximately $276,592.00 from the transaction. This sale reduced her holdings to 19,593 shares, valued at around $3,387,041.91. Over the past three months, insiders have sold a total of 44,820 shares worth approximately $7,883,482. Currently, insiders own a mere 0.08% of the company’s stock.
Current Stock Performance and Financial Overview
QUALCOMM’s stock opened at $155.82 on the NASDAQ on a recent Friday. The company has experienced a 12-month low of $120.80 and a high of $205.95. Financially, QUALCOMM maintains a debt-to-equity ratio of 0.70, with a current ratio of 2.82 and a quick ratio of 2.10. Its market capitalization stands at $166.88 billion, with a price-to-earnings (P/E) ratio of 31.87 and a price-to-earnings-growth ratio of 3.52.
In its latest quarterly earnings report, released on November 5, 2023, QUALCOMM announced earnings per share (EPS) of $3.00, surpassing analyst expectations of $2.87 by $0.13. The company reported revenue of $11.27 billion, exceeding the consensus estimate of $10.74 billion and marking a year-over-year revenue increase of 10.0%. Looking ahead, QUALCOMM has set guidance for Q1 2026, targeting EPS between $3.300 and $3.500. Analysts forecast an average EPS of $9.39 for the current fiscal year.
Dividend Declaration
The company has also announced a quarterly dividend of $0.89, scheduled for payment on March 26, 2024. Investors recorded as of March 5, 2024, will receive this dividend, representing an annualized total of $3.56 and a yield of 2.3%. QUALCOMM’s dividend payout ratio is noted at 72.80%.
Founded in 1985 and headquartered in San Diego, California, QUALCOMM Incorporated is a global leader in semiconductor and telecommunications equipment. The company is renowned for its contributions to wireless technologies and plays a pivotal role in the development of digital cellular standards, such as CDMA and subsequent mobile generations. Its product offerings include system-on-chip (SoC) platforms under the Snapdragon brand, cellular modem components, and solutions for Wi-Fi, Bluetooth, automotive applications, and more.
