Qualcomm Inc (NASDAQ:QCOM), a leader in the development and commercialization of foundational technologies for the wireless industry, including mobile communications, networking, and other related technologies, has reported an insider sale according to a recent SEC filing. The insider, Chief Commercial Officer James Cathey, sold 1,000 shares of the company on January 11, 2024.
James Cathey’s transaction was executed at an average price of $139 per share, resulting in a total value of $139,000. This sale has contributed to the insider's total of 6,000 shares sold over the past year, with no recorded purchases in the same period.
The insider transaction history at Qualcomm Inc shows a pattern of insider sales over the past year, with 15 insider sells and no insider buys. This could suggest a trend among insiders in their trading activities, although it is essential to consider the broader context of the market and the company's performance when interpreting these transactions.
On the valuation front, Qualcomm Inc's shares were trading at $139 on the day of the insider's sale, giving the company a market capitalization of $152.563 billion. The price-earnings ratio of the stock stands at 21.66, which is below the industry median of 27.71, indicating a potentially lower valuation compared to its peers. However, it is higher than the company's historical median price-earnings ratio.
The stock's price-to-GF-Value ratio is 0.99, with a GF Value of $139.92, suggesting that Qualcomm Inc is Fairly Valued according to GuruFocus's intrinsic value estimate. The GF Value is determined by historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
Investors and analysts often monitor insider trading patterns for insights into a company's internal perspectives. While the sale of shares by the insider does not necessarily indicate a negative outlook, it is one of many factors that shareholders may consider when assessing their investment in Qualcomm Inc.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
