Qualcomm Outperforms Despite Institutions’ Selling
Posted on September 6th, 2022
Qualcomm Inc. (QCOM) continues to face market volatility and a decline in growth, though the company has outperformed the S&P 500. As of September 2, 2022, Qualcomm was down by approximately 10% compared to the S&P 500’s loss of about 12% over the past year. In the second quarter of 2022, the company made the WhaleWisdom Heatmap with a rank of two.
Qualcomm is a multinational corporation that creates semiconductors and software while offering wireless technology services. The company operates through three core segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives. Qualcomm is a leading chipmaker and utilizes mobile chip technology to serve personal computers, Internet of Things, and automotive markets. Qualcomm has made a considerable mark on wireless technology with its patents for mobile communication, such as 5G and CDMA, which align well with its goals to innovate and intelligently connect the world.
Hedge Funds Adjust Portfolios
Hedge funds were selling in the second quarter of 2022, and the aggregate 13F shares held decreased approximately 0.9% to about 147.5 million from 148.8 million. Of the hedge funds, 26 created new positions, 204 added, 27 exited, and 130 reduced their stakes. Institutions also sold and decreased their aggregate holdings by about 1.8% to approximately 796.3 million from 810.5 million.
Analysts expect to see earnings rise to $12.52 per share by September 2022 and $12.98 by September 2023. Revenue estimates also offer encouragement, with predictions of approximately $46.8 billion in September 2023, up from an estimated $44.2 billion for 2022. The 13F metrics over the past twenty years show that funds remained steady, even as Qualcomm’s stock price fluctuated.
Analysts Share Optimistic Price Targets
Analysts’ price targets may vary, but most view Qualcomm as an investment opportunity. Analyst Vijay Rakesh of Mizuho Securities Co. raised the firm’s price target to $175 from $168 and kept a Buy rating on shares. Edward Jones & Co. analyst Logan Purk upgraded Qualcomm’s rating to a Buy from a Hold, noting the opportunity for growth. Gary Mobley of Wells Fargo Securities raised the firm’s price target to $150 from $135, maintaining an Equal Weight rating on Qualcomm’s shares and citing softness in the smartphone market. Analyst T. Michael Walkley of Canaccord Genuity kept a Buy rating on shares and lowered the firm’s price target to $225 from $250. Walkley spoke of Qualcomm’s strong 5G leadership position and the opportunity for long-term solid market growth.
Qualcomm’s stock may have lost some ground, but the technology company has shown continued growth. Hedge funds were selling in the second quarter, though earnings and revenue estimates through 2023 look favorable. Bullish investors will take note of Qualcomm’s ability to outperform the market and view the stock as a long-term investment opportunity.