Is QUALCOMM Incorporated (QCOM) A Good Investment?


QUALCOMM Incorporated (NASDAQ:QCOM) finished Thursday with an addition of $2.87 to close at $109.84, an upside of 2.68 percent. An average of 7,126,360 shares of common stock have been traded in the last five days. There was a fall of -$4.75 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 7,574,115 shares traded, while the 50-day average volume stands at 8,287,318.

QCOM stock has decreased by -7.21% in the last month. The company shares reached their 1-month lowest point of $106.82 on 12/28/22. With the stock rallying to its 52-week high on 01/05/22, shares of the company touched a low of $101.93 and a high of $193.58 in 52 weeks. It has reached a new high 3 times so far this year and lost -39.94% or -$73.03 in price. In spite of this, the price is down -43.26% from the 52-week high.

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Insider Transactions

QCOM stock investors should be aware that QUALCOMM Incorporated (QCOM) stock had its last reported insider trading activity 24 days ago on Dec 06. In this transaction, the insider spent $3,232,884. SVP, Controller & CAO, POLEK ERIN L, disposed of 2,894 shares at a price of $121.10 on Nov 21. The insider now owns more than $350,463 worth of shares. Prior to that, President QTL & Global Affairs ROGERS ALEXANDER H went on to Sale 5,591 shares at $114.99 each on Oct 03. An amount of $642,909 was transacted.

Valuation Metrics

QUALCOMM Incorporated (QCOM) has a trailing price-to-earnings (P/E) ratio of 9.61. The stock’s beta is 1.24. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.78, the price-to-book (PB) ratio at 6.83, and the price-to-cash flow ratio at 33.95.

The company has a payout ratio of 24.80%. The company’s most recent quarterly dividend payment was $0.75 a share, without any change from last year. Its latest increase dividend $0.07 reported on Wednesday April 13 2022.

Financial Health

The quick ratio of QUALCOMM Incorporated for the three months ended June 29 was 1.20, and the current ratio was 1.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.75 and a total debt to equity ratio of 0.86 for the quarter ending June 29. Its gross profit as reported stood at $25.57 billion compared to revenue of $44.2 billion.

Earnings Surprise

For the three-month period that ended June 29, QUALCOMM Incorporated had $3.61 billion in cash and short-term investments compared to $13.54 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.87 billion in the quarter, while revenues of $3.73 billion were grew 2.58%. The analyst consensus anticipated QUALCOMM Incorporated’s latest quarter earnings to come in at $2.87 per share, but it turned out to be $2.96, a 3.10% surprise. For the quarter, EBITDA amounted to $4.16 billion. Shareholders own equity worth $1.12 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at QUALCOMM Incorporated (QCOM) price momentum. RSI 9-day as of the close on 29 December was 38.15%, suggesting the stock is Neutral, with historical volatility in this time frame at 29.98%.

As of today, QCOM’s price is $109.56 -4.15% or -$4.75 from its 5-day moving average. QCOM is currently trading -13.16% lower than its 20-day SMA and -25.69% lower than its 100-day SMA. However, the stock’s current price level is -1.23% below the SMA50 and -23.83% below the SMA200.

The stochastic %K and %D were 8.38% and 10.74%, respectively, and the average true range (ATR) was 3.87. With the 14-day stochastic at 14.29% and the average true range at 4.05, the RSI (14) stands at 40.53%. The stock has reached -2.53 on the 9-day MACD Oscillator while the 14-day reading was at -5.79.

Analyst Ratings

Wells Fargo downgraded QUALCOMM Incorporated (NASDAQ: QCOM) to a an Underweight rating in its most recent analyst report. Previously, the stock was rated as an Equal weight. The consensus rating for QUALCOMM Incorporated (QCOM) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell QCOM, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 18 others rate it as a “buy”.

What is QCOM’s price target for the next 12 months?

Analysts predict a range of price targets between $105.00 and $250.00, with a median target of $150.00. Taking a look at these predictions, the average price target given by analysts for QUALCOMM Incorporated (QCOM) stock is $148.61.


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