On September 13, 2023, James Thompson, the Chief Technology Officer of Qualcomm Inc (QCOM, Financial), sold 27,962 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 37,961 shares and purchased none.
James Thompson is a key figure at Qualcomm Inc, a company that is a world leader in 3G, 4G, and next-generation wireless technologies. Qualcomm's technologies are used in mobile devices and other wireless products, including network equipment, broadband gateway equipment, consumer electronic devices, and other connected devices. Thompson's role as CTO places him in a strategic position within the company, making his stock transactions particularly noteworthy.
The insider transaction history for Qualcomm Inc shows a trend towards selling rather than buying. Over the past year, there have been 10 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Qualcomm Inc were trading for $113.23 apiece, giving the stock a market cap of $127.08 billion. The price-earnings ratio is 14.92, which is lower than both the industry median of 23.96 and the company’s historical median price-earnings ratio. This suggests that the stock is undervalued compared to its peers and its own historical performance.
The GF Value, an intrinsic value estimate developed by GuruFocus, further supports this assessment. With a price of $113.23 and a GuruFocus Value of $151.91, Qualcomm Inc has a price-to-GF-Value ratio of 0.75. This indicates that the stock is modestly undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance. The GF Value for Qualcomm Inc is shown in the following image:
The insider's decision to sell shares could be influenced by a variety of factors. It's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio. However, the trend of insider selling at Qualcomm Inc is worth monitoring for potential implications for the stock's future performance.
In conclusion, while the insider's recent sell and the trend of insider selling at Qualcomm Inc may raise questions, the stock's current valuation suggests it is modestly undervalued. Investors should consider these factors along with the company's fundamentals and market conditions when making investment decisions.
