Keep QUALCOMM Incorporated (QCOM) From Driving You Insane

QUALCOMM Incorporated (NASDAQ:QCOM) short sellers believe it will rise in price. The most recent short interest data has been released for the December 31st settlement date, which shows a -11,606,025 share decrease in total short interest for QCOM, to 62,601,166, a retreat of 15.64% since December 14th. Average daily volume for QUALCOMM Incorporated at the December 31st settlement jumped to 17,052,369, as compared to 15,280,815 at the December 14th report. That brought days to cover to 3.671113, a 24.4% decrease from the 4.856233 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 2.4 suggests buying these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

QUALCOMM Incorporated (QCOM) will probably climb 18.96 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $87-month high price target. This represents a whopping 51.3 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 21.74 percent when compared to the closing price of the stock of $57.5 on Friday, January 11. The lowest price target for the stock is $55 — slightly more than -4.35 percent from QCOM’s current share price.

The stock is currently hovering around the first support level of $56.5. Below this, the next support is placed in the zone of $55.49. Till the time, the QCOM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.58 on daily chart, which may remain a cause for concern. If the price breaks below $55.49 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $58.34 mark may result into a pull-back move towards $59.17 level.

On 11th of January, QUALCOMM Incorporated (NASDAQ:QCOM) shares ended higher after a volatile session. The shares accumulated 0.7 points or 1.23 percent at $57.5 with a light trade volume of 11.844 million shares. After opening the session at $56.47, the shares went as high as $58.17 and as low as $56.33, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $68.9 billion and now has 1.2 billion shares outstanding. QUALCOMM Incorporated (QCOM) stock has gained 0.26 percent of market value in 21 trading days.

QCOM stock has a trailing 3-year beta of 1.45, 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 surged 1.04 percent year to date (YTD) against a decline of -11.89 percent in 12 month’s time. The company’s shares still trade -24.84 percent away from its 1-year high of $76.50 and 18.41 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.

Shares of QUALCOMM Incorporated (QCOM) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry QCOM operates in has an average P/E of 12.45. Its P/E ratio went as low as 16.48X and as high as 31.47 over the 5-year span. Further, it is sporting a 3.03 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.

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 -0.88 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 -4.53 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 4.13 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 -9.45 percent since the reporting date. Rogers Alexander H now left with a stake of 4.34 thousand QCOM stock worth $249.78 thousand after the insider selling.