QUALCOMM Incorporated (QCOM) looking to reclaim success with recent performance

QUALCOMM Incorporated (NASDAQ: QCOM) stock jumped 0.97% on Thursday to $104.02 against a previous-day closing price of $103.02. With 11.68 million shares changed hands, the volume of the stock remained heavier than its average volume of 7.39 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $104.11 whereas the lowest price it dropped to was $101.48. The 52-week range on QCOM shows that it touched its highest point at $156.66 and its lowest point at $101.58 during that stretch. It currently has a 1-year price target of $133.81. With its current market cap of 117.08 billion, QCOM has annualized dividend of $3.20 while the current yield stands at 3.08%. Beta for the stock currently stands at 1.27.

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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 -2.75%, but this was down by -8.88% over a month. Three-month performance dropped to -16.34% while six-month performance fell -15.88%. The stock lost -19.07% in the past year, while it has lost -5.38% so far this year. A look at the trailing 12-month EPS for QCOM yields 9.40 with Next year EPS estimates of 9.61. For the next quarter, that number is 1.81. This implies an EPS growth rate of 45.10% for this year and 16.23% for next year. EPS is expected to decline by -10.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 47.40%.

Float and Shares Shorts:

At present, 1.12 billion QCOM shares are outstanding with a float of 1.11 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 9.39 million, which was 0.84% higher than short shares on Mar 30, 2023. In addition to Mr. Cristiano Renno Amon as the firm’s Chief Exec. Officer, Pres & Director, Mr. Akash Palkhiwala serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 75.99% of QCOM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.30% of QCOM, in contrast to 32.28% held by mutual funds. Shares owned by individuals account for 2.33%. As the largest shareholder in QCOM with 9.42% of the stake, The Vanguard Group, Inc. holds 105,059,952 shares worth 105,059,952. A second-largest stockholder of QCOM, BlackRock Fund Advisors, holds 56,825,279 shares, controlling over 5.10% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in QCOM, holding 48,492,351 shares or 4.35% stake. With a 3.11% stake in QCOM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 34,648,321 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of QCOM stock, is the second-largest Mutual Fund holder. It holds 26,171,052 shares valued at 3.06 billion. Invesco QQQ Trust holds 1.33% of the stake in QCOM, owning 14,783,314 shares worth 1.73 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 Mar 25, 2023, QCOM reported revenue of $10.94B and operating income of $3.41B. The EBITDA in the recently reported quarter was $3.78B and diluted EPS was $3.29.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for QCOM since 0 analysts follow the stock currently. 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 $152.00 and a low target of $95.00, the average target price over the next 12 months is $131.91. Based on these targets, QCOM could surge 46.13% to reach the target high and fall by -8.67% to reach the target low. Reaching the average price target will result in a growth of 26.81% 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.

Dividends & Yield:

In terms of dividends, QCOM has a current ratio of $3.2, which is $3.2 over the trailing 12-months, while a dividend of $2.59 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 $2.88. In the past year, QCOM’s dividend yield has been $2.88, but when looking at the stock over the past five years, its yield has been $2.67. Accordingly, QCOM has a current buyback yield of $2.39. This was $2.39 for the TTM, and it was $7.03 for the past five years.

Summary of Insider Activity:

Insiders traded QCOM stock several times over the past three months with 11 Buys and 5 Sells. In these transactions, 192,909 shares were bought while 174,623 shares were sold. The number of buy transactions has increased to 52 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 670,126 while 483,865 shares were sold.

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