SAN DIEGO—Akash J. Palkhiwala, the Chief Financial Officer and Chief Operating Officer of Qualcomm Inc . (NASDAQ:QCOM), recently sold shares of the company amounting to $463,850. The transactions took place on January 2, 2025, according to a filing with the Securities and Exchange Commission. Qualcomm, with a market capitalization of $175 billion, maintains a strong financial health rating according to InvestingPro analysis, supported by its robust 56% gross profit margin and 22-year history of consistent dividend payments.
Palkhiwala sold a total of 3,000 shares of Qualcomm's common stock. The sale prices for these transactions ranged from $153.5017 to $157.175 per share. Following these transactions, Palkhiwala retains ownership of 66,021 shares in the company. Based on InvestingPro's Fair Value analysis, Qualcomm currently appears undervalued, trading at a P/E ratio of 17.4x while offering a 2.2% dividend yield.
These sales were conducted under a pre-established Rule 10b5-1 trading plan, which was adopted on December 7, 2023. This type of plan allows company insiders to set up a predetermined schedule for selling stocks to avoid potential accusations of insider trading. For deeper insights into Qualcomm's valuation metrics and financial health indicators, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with detailed analysis and actionable intelligence.
In other recent news, Qualcomm has been the focus of several key developments. The company emerged victorious in a legal dispute with Arm Holdings (NASDAQ:ARM), a significant event given the major tech firms' reliance on Arm's chip architecture. The jury confirmed that Qualcomm's integration of technology from its $1.4 billion acquisition of Nuvia Inc. in 2021 did not require additional licensing fees.
On the financial front, Qualcomm recently reported non-GAAP revenues of $10.2 billion and earnings per share of $2.69. The chipset segment contributed $8.7 billion in revenues, while the licensing segment brought in $1.5 billion. Record revenues of $899 million were reported in the automotive market.
KeyBanc maintained its Sector Weight rating on Qualcomm, with a fair value of $150. Meanwhile, Mizuho (NYSE:MFG) Securities maintained an Outperform rating on Qualcomm, reducing the price target to $215, highlighting the company's momentum in augmented reality and the anticipated PC market tailwinds through to 2026.
In other developments, a high-stakes trial between Arm Ltd and Qualcomm commenced, centered around Qualcomm's use of Arm's intellectual property and Qualcomm's acquisition of Nuvia. Furthermore, the leadership at Qualcomm is set to change, with the retirement of Chief Technology Officer Dr. James H. Thompson and the appointment of Dr. Baaziz Achour as the new CTO. These are the recent developments about Qualcomm.
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