Qualcomm(US:QCOM) Defense World·2026-02-07 08:32Core Insights - QUALCOMM has seen significant institutional investment, with hedge funds owning 74.35% of its stock, indicating strong market interest and confidence in the company [1] - Recent insider trading activity shows executives selling shares, with EVP Ann C. Chaplin and EVP Alexander H. Rogers reducing their positions by 23.07% and 37.91% respectively, which may raise questions about insider sentiment [2] - The company's stock is currently trading at $137.34, with a market cap of $146.54 billion and a P/E ratio of 28.38, reflecting its valuation metrics [3] Institutional Investment - Norges Bank acquired a new stake valued at approximately $2.71 billion in the second quarter [1] - Amundi increased its holdings by 38.2%, now owning 11.53 million shares valued at $1.87 billion [1] - Viking Global Investors LP grew its stake by 120.1%, owning 3.15 million shares worth $502.13 million [1] - Rafferty Asset Management LLC increased its position by 59.1%, holding 4.42 million shares valued at $703.68 million [1] - Worldquant Millennium Advisors LLC raised its stake by 228.6%, now owning 1.13 million shares worth $179.97 million [1] Insider Activity - EVP Ann C. Chaplin sold 7,180 shares at an average price of $178.03, totaling $1.28 million, reducing her position by 23.07% [2] - EVP Alexander H. Rogers sold 15,917 shares at an average price of $178.01, totaling $2.83 million, reducing his ownership by 37.91% [2] - In total, insiders sold 43,017 shares worth $7.46 million in the last ninety days, with corporate insiders owning only 0.05% of the stock [2] Financial Performance - QUALCOMM reported earnings per share of $3.50, exceeding analysts' expectations of $3.38, with revenue of $12.25 billion, surpassing estimates of $12.16 billion [4] - The company experienced a year-over-year revenue increase of 4.7%, with a net margin of 11.96% and a return on equity of 44.09% [4] - Guidance for Q2 2026 is set at an EPS range of 2.450-2.650, with analysts predicting an EPS of 9.39 for the current fiscal year [4] Dividend Information - QUALCOMM declared a quarterly dividend of $0.89 per share, with an annualized dividend of $3.56 and a yield of 2.6% [5] - The dividend payout ratio currently stands at 72.80% [5] Analyst Ratings - Analysts have mixed views on QUALCOMM, with a consensus rating of "Hold" and a target price of $167.68 [8] - Price targets have been adjusted, with JPMorgan lowering its target from $195.00 to $185.00, and Royal Bank of Canada cutting its target from $180.00 to $150.00 [8] - Ten analysts rated the stock as a Buy, nine as Hold, and two as Sell, indicating a diverse range of opinions on the stock's future performance [8] Market Sentiment - Positive sentiment exists due to the recent earnings beat and strong demand in automotive and handset markets, despite some analysts cutting price targets [12] - Concerns about memory shortages affecting future revenue and handset shipments have led to a cautious outlook, contributing to volatility in the stock [12] - The stock has returned to 2020 price levels, which may lead to short-term price bounces despite ongoing fundamental challenges [12]