Holdings of QUALCOMM Incorporated (QCOM) are aligned with the stars

QUALCOMM Incorporated (NASDAQ: QCOM) stock fell -0.12% on Friday to $124.62 against a previous-day closing price of $124.77. With 8.07 million shares changed hands, the volume of the stock remained heavier than its average volume of 7.86 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $129.76 whereas the lowest price it dropped to was $124.50. The 52-week range on QCOM shows that it touched its highest point at $193.58 and its lowest point at $118.22 during that stretch. It currently has a 1-year price target of $186.64. With its current market cap of 139.98 billion, QCOM has annualized dividend of $3.00 while the current yield stands at 2.41%. Beta for the stock currently stands at 1.26.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of QCOM was down-trending over the past week, with a drop of -2.28%, but this was down by -12.00% over a month. Three-month performance surged to 2.01% while six-month performance fell -20.93%. The stock lost -5.41% in the past year, while it has lost -31.85% so far this year. A look at the trailing 12-month EPS for QCOM yields 11.29 with Next year EPS estimates of 12.95. For the next quarter, that number is 3.15. This implies an EPS growth rate of 74.00% for this year and 3.18% for next year. EPS is expected to grow by 7.62% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.60%.

Float and Shares Shorts:

At present, 1.12 billion QCOM shares are outstanding with a float of 1.12 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 15.46 million, which was 1.38% higher than short shares on Jul 28, 2022. In addition to Mr. Cristiano Renno Amon as the firm’s CEO, Pres & Director, Mr. Akash Palkhiwala serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 74.29% of QCOM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.17% of QCOM, in contrast to 32.82% held by mutual funds. Shares owned by individuals account for 2.29%. As the largest shareholder in QCOM with 9.11% of the stake, The Vanguard Group, Inc. holds 102,322,912 shares worth 102,322,912. A second-largest stockholder of QCOM, BlackRock Fund Advisors, holds 54,744,088 shares, controlling over 4.88% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in QCOM, holding 47,044,190 shares or 4.19% stake. With a 2.95% stake in QCOM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 33,159,656 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of QCOM stock, is the second-largest Mutual Fund holder. It holds 24,995,333 shares valued at 3.31 billion. Invesco QQQ Trust holds 1.44% of the stake in QCOM, owning 16,128,965 shares worth 2.13 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 25, 2022, QCOM reported revenue of $10.94B and operating income of $3.41B. Over the past year, revenue came in at $42.14B while operating income stood at $15.10B. It generated $3.73B net income for the quarter, which came to $12.86B over the last twelve months. The EBITDA in the recently reported quarter was $3.78B and diluted EPS was $3.29. EBITDA for the full year was $15.72B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for QCOM since 32 analysts follow the stock currently. There are 17 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With QCOM analysts setting a high price target of $250.00 and a low target of $130.00, the average target price over the next 12 months is $182.11. Based on these targets, QCOM could surge 100.61% to reach the target high and rise by 4.32% to reach the target low. Reaching the average price target will result in a growth of 46.13% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. QCOM will report FY 2022 earnings on 11/02/2022. Analysts have provided yearly estimates in a range of $13.47 being high and $11.69 being low. For QCOM, this leads to a yearly average estimate of $12.56. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. QUALCOMM Incorporated surprised analysts by $0.07 when it reported $2.96 EPS against a consensus estimate of $2.89. The surprise factor in the prior quarter was $0.26. Based on analyst estimates, the high estimate for the next quarter is $3.23 and the low estimate is $3.08. The average estimate for the next quarter is thus $3.15.

Dividends & Yield:

In terms of dividends, QCOM has a current ratio of $3.0, which is $3.0 over the trailing 12-months, while a dividend of $2.5 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and QCOM currently yields $2.29. In the past year, QCOM’s dividend yield has been $2.29, but when looking at the stock over the past five years, its yield has been $2.88. Accordingly, QCOM has a current buyback yield of $2.17. This was $2.17 for the TTM, and it was $6.75 for the past five years.

Summary of Insider Activity:

Insiders traded QCOM stock several times over the past three months with 5 Buys and 2 Sells. In these transactions, 15,850 shares were bought while 6,516 shares were sold. The number of buy transactions has increased to 49 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 451,901 while 285,292 shares were sold.

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