Are QUALCOMM Incorporated (NASDAQ:QCOM) Prospects Worsening?

QUALCOMM Incorporated (NASDAQ:QCOM) Relative Strength Index (RSI) is 51.32, with weekly volatility at 2.09% and ATR at 4.15. The QCOM stock’s 52-week price range has touched low of $58.00 and a $161.07 high. Intraday shares traded counted 4.55 million, which was 44.88% higher than its 30-day average trading volume of 8.25M. Its shares traded lower over the last trading session, losing -0.71% on 12/29/20. The shares fell to a low of $147.44 before closing at $147.74. QCOM’s previous close was $148.79 while the outstanding shares total 1.13B. The firm has a beta of 1.37, a 12-month trailing P/E ratio of 32.62, and a growth ratio of 1.35.

Investors have identified the Semiconductors company QUALCOMM Incorporated as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $165.04 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

QUALCOMM Incorporated (QCOM) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For QCOM, the company has in raw cash 6.71 billion on their books with 500.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 18.52 billion total, with 8.67 billion as their total liabilities.

QCOM were able to record 4.41 billion as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by -5.13 billion. In cash movements, the company had a total of 5.81 billion as operating cash flow.

Potential earnings growth for QUALCOMM Incorporated (QCOM)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, QUALCOMM Incorporated recorded a total of 8.35 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 42.31% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 41.37%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.77 billion trying to sell their products during the last quarter, with the result yielding a gross income of 5.58 billion. This allows shareholders to hold on to 1.13B with the recently reported earning now reading 2.61 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (1.23 cents a share).

Having a look at the company’s valuation, the company is expected to record 7.82 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on QCOM sounds very interesting.

Is the stock of QCOM attractive?

In related news, President, AMON CRISTIANO R sold 73,220 shares of the company’s stock in a transaction that recorded on Dec 16. The sale was performed at an average price of 148.72, for a total value of 10,889,139. As the sale deal closes, the EVP & General Counsel, Rosenberg Donald J now sold 49,362 shares of the company’s stock, valued at 7,784,486. Also, EVP & President, QTL, ROGERS ALEXANDER H sold 35,102 shares of the company’s stock in a deal that was recorded on Dec 08. The shares were price at an average price of 157.17 per share, with a total market value of 5,517,041. Following this completion of acquisition, the EVP, Strategy and M&A, MODOFF BRIAN now holds 20,301 shares of the company’s stock, valued at 3,213,937. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.14%.

18 out of 29 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on QUALCOMM Incorporated. 1 analysts has assigned a Sell rating on the QCOM stock. The 12-month mean consensus price target for the company’s shares has been set at $164.22.

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