Unusual Put Option Trade in Qualcomm Worth $3,775K

On May 17, 2023 at 15:16:18 ET an unusually large $3,775.00K block of Put contracts in Qualcomm (QCOM) was sold, with a strike price of $120.00 / share, expiring in 2 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.78 sigmas above the mean, placing it in the 99.89th percentile of all recent large trades made in QCOM options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 3696 funds or institutions reporting positions in Qualcomm. This is a decrease of 10 owner(s) or 0.27% in the last quarter. Average portfolio weight of all funds dedicated to QCOM is 0.65%, an increase of 6.52%. Total shares owned by institutions decreased in the last three months by 1.92% to 901,532K shares. The put/call ratio of QCOM is 1.07, indicating a bearish outlook.

Analyst Price Forecast Suggests 36.57% Upside

As of May 11, 2023, the average one-year price target for Qualcomm is 141.74. The forecasts range from a low of 95.95 to a high of $249.90. The average price target represents an increase of 36.57% from its latest reported closing price of 103.79.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Qualcomm is 41,166MM, an increase of 0.23%. The projected annual non-GAAP EPS is 10.43.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 34,077K shares representing 3.06% ownership of the company. In it’s prior filing, the firm reported owning 33,507K shares, representing an increase of 1.67%. The firm decreased its portfolio allocation in QCOM by 8.61% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 25,914K shares representing 2.33% ownership of the company. In it’s prior filing, the firm reported owning 25,457K shares, representing an increase of 1.76%. The firm decreased its portfolio allocation in QCOM by 8.74% over the last quarter.

Geode Capital Management holds 21,033K shares representing 1.89% ownership of the company. In it’s prior filing, the firm reported owning 20,599K shares, representing an increase of 2.06%. The firm increased its portfolio allocation in QCOM by 9.59% over the last quarter.

Alliancebernstein holds 16,864K shares representing 1.51% ownership of the company. In it’s prior filing, the firm reported owning 18,000K shares, representing a decrease of 6.73%. The firm decreased its portfolio allocation in QCOM by 12.40% over the last quarter.

Price T Rowe Associates holds 16,356K shares representing 1.47% ownership of the company. In it’s prior filing, the firm reported owning 15,862K shares, representing an increase of 3.02%. The firm decreased its portfolio allocation in QCOM by 50.65% over the last quarter.

Qualcomm Declares $0.80 Dividend

On April 12, 2023 the company declared a regular quarterly dividend of $0.80 per share ($3.20 annualized). Shareholders of record as of June 1, 2023 will receive the payment on June 22, 2023. Previously, the company paid $0.75 per share.

At the current share price of $103.79 / share, the stock’s dividend yield is 3.08%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.76%, the lowest has been 1.46%, and the highest has been 4.99%. The standard deviation of yields is 0.89 (n=236).

The current dividend yield is 0.36 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.34. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.23%, demonstrating that it has increased its dividend over time.

Qualcomm Background Information
(This description is provided by the company.)

Qualcomm is the world’s leading wireless technology innovator and the driving force behind the development, launch, and expansion of 5G. When people connected the phone to the internet, the mobile revolution was born. Today, foundational technologies enable the mobile ecosystem and are found in every 3G, 4G and 5G smartphone. The company brings the benefits of mobile to new industries, including automotive, the internet of things, and computing, and are leading the way to a world where everything and everyone can communicate and interact seamlessly. Qualcomm Incorporated includes licensing business, QTL, and the vast majority of patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering, research and development functions, and substantially all of our products and services businesses, including our QCT semiconductor business.

Key filings for this company:

This article originally appeared on Fintel

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