Insider Activity Casts a Cloud Over QUALCOMM Incorporated (QCOM)

Despite closing 0.19 points higher on 10 January, QUALCOMM Incorporated (NASDAQ:QCOM) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Friday. The shares accumulated 0.34 percent at $56.8 with a light trade volume of 10.952 million shares. After opening the session at $56.19, the shares went as high as $56.99 and as low as $56.1, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $69.8 billion and now has 1.23 billion shares outstanding. QUALCOMM Incorporated (QCOM) stock has lost -0.77 percent of market value in 21 trading days.

QCOM stock has a trailing 3-year beta of 1.46, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$3.02 a share in the trailing twelve months. The stock’s value has fallen -0.19 percent year to date (YTD) against a decline of -12.98 percent in 12 month’s time. The company’s shares still trade -25.75 percent away from its 1-year high of $76.50 and 16.97 percent up from 52-week low of $48.56. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

QUALCOMM Incorporated (QCOM) will probably climb 20.42 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $87price as 12-month high target. This represents a whopping 53.17 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $70, which represents a return potential of 23.24 percent when compared to the closing price of the stock of $56.8 on Thursday, January 10. The lowest price target for the stock is $55 — slightly more than -3.17 percent from QCOM’s current share price.

History has shown that shares in QUALCOMM Incorporated have gone down on 19 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at QUALCOMM Incorporated (NASDAQ:QCOM) and see the pattern. The earliest insider trade took place on 12/13/2018. Rosenberg Donald J parted with a total of 9.05 thousand shares of company at average share price of $58.01. The total for the sales was set at $524.87 thousand. After this transaction, the EVP & General Counsel account balance stood at 22.42 thousand shares. The stock lost -2.41 percent since that insider sale. On 12/03/2018, Amon Cristiano R, President, sold 18.32 thousand shares at a price per share of $60.23. This removed 1.1 million shares from the insider’s fortune and the stock saw a -6.01 percent retreat in value since the news became public. This transaction left 37.42 thousand shares in the President account.

On 11/23/2018, EVP & General Counsel Rosenberg Donald J performed a sale transaction worth $347.72 thousand. This sale at $55.22 each has eliminated 6.3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 2.52 percent increase since the transaction was reported. The insider now is left with 22.42 thousand shares remaining in the account. Rogers Alexander H, who performs the EVP & President, QTL job, sold 0.85 thousand shares for $54.17 thousand. The disposal occurred on 10/29/2018 was priced at $63.5 per share. The share price plunged -10.85 percent since the reporting date. Rogers Alexander H now left with a stake of 4.34 thousand QCOM stock worth $246.74 thousand after the insider selling.

The stock is currently hovering around the first support level of $56.27. Below this, the next support is placed in the zone of $55.74. Till the time, the QCOM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.16 on daily chart, which may remain a cause for concern. If the price breaks below $55.74 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $57.16 mark may result into a pull-back move towards $57.52 level.

Further, it is sporting a 3.07 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.35. 56.9 percent is the gross profit margin for QUALCOMM Incorporated and operating margin sits at 2.8 percent. Along with this, the net profit margin is -21.4 percent.