OMERS Administration Corp Increases Stake in Qualcomm by 2.4%

OMERS Administration Corp has expanded its investment in QUALCOMM Incorporated, increasing its stake by 2.4% during the second quarter of 2023. According to a report from HoldingsChannel.com, the fund now holds a total of 73,971 shares of the wireless technology company after acquiring an additional 1,700 shares in that period. As of its most recent filing with the Securities and Exchange Commission (SEC), OMERS’ holdings in QUALCOMM are valued at approximately $11.78 million.

Several other institutional investors have also adjusted their positions in QUALCOMM, reflecting growing interest in the technology sector. Brighton Jones LLC significantly boosted its stake by 116.6% in the fourth quarter, now owning 17,356 shares valued at $2.67 million after purchasing 9,343 additional shares. Similarly, Revolve Wealth Partners LLC increased its holdings by 15.4%, bringing its total to 2,542 shares valued at roughly $391,000.

In the first quarter, Harbour Investments Inc. raised its position by 3.3%, resulting in ownership of 9,632 shares worth $1.48 million. Nicolet Advisory Services LLC also increased its stake by 16.5%, now holding 1,982 shares valued at about $304,000. Jefferies Financial Group Inc. lifted its holdings by an impressive 42.6%, owning 24,351 shares worth $3.74 million after acquiring an additional 7,275 shares.

Currently, hedge funds and institutional investors control approximately 74.35% of QUALCOMM’s stock.

Insider Trading Activities

In addition to the institutional investment changes, insider trading activity has also been notable. On November 7, 2023, Heather S. Ace, an insider at QUALCOMM, sold 1,600 shares at an average price of $172.87, generating a total of $276,592. Following this transaction, Ace retained 19,593 shares, valued at about $3.39 million, marking a 7.55% decrease in her position.

Furthermore, Patricia Y. Grech, the Chief Accounting Officer, sold 513 shares on November 21, 2023, at an average price of $160.95, amounting to $82,567.35. Post-transaction, Grech holds 203 shares valued at approximately $32,672.85, representing a significant 71.65% decrease in her holdings. Over the last ninety days, insiders have sold a total of 167,791 shares valued at approximately $27.78 million, with insiders currently holding just 0.08% of the stock.

QUALCOMM’s Financial Performance

QUALCOMM released its quarterly earnings results on November 5, 2023, reporting an earnings per share (EPS) of $3.00. This figure surpassed analysts’ expectations of $2.87 by $0.13. The company demonstrated a net margin of 26.77% and a return on equity of 40.35%, with revenues of $11.27 billion for the quarter, exceeding forecasts of $10.74 billion. This marks a 10.0% increase in revenue compared to the same period last year, where QUALCOMM reported an EPS of $2.69.

Looking ahead, the company has set its guidance for the first quarter of 2026, projecting an EPS between $3.30 and $3.50. Analysts predict that QUALCOMM will achieve an average EPS of $9.39 for the current fiscal year.

Dividend Announcement and Analyst Ratings

The company recently announced a quarterly dividend of $0.89 per share, scheduled for payment on December 18, 2023, to shareholders on record as of December 4, 2023. This dividend represents a total annualized payout of $3.56, yielding approximately 2.1%. The ex-dividend date is set for December 4, 2023, with QUALCOMM’s dividend payout ratio currently at 72.80%.

Recent reports from various research firms reflect positive sentiment towards QUALCOMM’s stock. Citigroup raised its price target from $170.00 to $175.00 while maintaining a “neutral” rating. UBS Group also elevated its target from $175.00 to $185.00, assigning a “neutral” rating as well. Mizuho and TD Cowen issued more optimistic projections, with Mizuho raising its target to $200.00 and TD Cowen to $205.00, both recommending a “buy” rating.

As of now, one research analyst has rated QUALCOMM with a “Strong Buy,” thirteen have given it a “Buy” rating, nine have issued a “Hold,” and one has a “Sell” rating. The consensus rating stands at “Moderate Buy” with an average target price of $190.38.

QUALCOMM Incorporated is recognized for its pivotal role in developing and commercializing technologies within the wireless industry, operating through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI).