SAN DIEGO, CA – James H. Thompson, Chief Technology Officer of Qualcomm (NASDAQ:QCOM) Incorporated (NASDAQ:QCOM), has sold 8,000 shares of company stock for a total value of approximately $1.46 million, according to a recent SEC filing. The transaction was executed on May 3, 2024, with the shares being sold at a price of $182.0 each.
The sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted on November 29, 2023. Rule 10b5-1 trading plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information. This enables insiders to gradually diversify their investment portfolios, reduce risk, and avoid concerns about insider trading.
Following the sale, Thompson still holds a significant number of Qualcomm shares directly and indirectly. His direct holdings amount to 253,893 shares. In addition to his direct holdings, Thompson has indirect ownership through trusts. Shares amounting to 4,539 are held in individual trusts for the benefit of his children, and he disclaims beneficial ownership of these shares. Furthermore, 45,453 shares are held by his spouse's trust, and another 45,453 shares are held by a separate trust. Both of these trusts are managed by Premier Trust, as trustee.
The transaction comes as Qualcomm continues to be a leading player in the radio and TV broadcasting and communications equipment sector. With a focus on manufacturing and innovation, Qualcomm's executive movements are closely watched by investors for insights into the company's performance and strategic direction.
Investors and market watchers often look at insider selling and buying as a signal of confidence in the company's prospects. While insider sales can sometimes raise concerns among shareholders, they are not uncommon and can be motivated by a variety of personal financial planning reasons.
For additional details regarding the transaction, interested parties can refer to the full SEC Form 4 filing.
InvestingPro Insights
In light of Qualcomm Incorporated's (NASDAQ:QCOM) recent insider trading activity, it's worth noting that the company has demonstrated significant financial resilience and market performance. According to InvestingPro data, Qualcomm boasts a robust market capitalization of $200.48 billion and has sustained an impressive Price/Earnings (P/E) ratio of 23.88, which adjusts to a slightly more favorable 22.81 when considering the last twelve months as of Q2 2024. Despite a decrease in revenue growth by -11.35% over the last twelve months as of Q2 2024, the company has managed a notable gross profit margin of 55.81%, indicating its ability to maintain profitability.
InvestingPro Tips reveal that Qualcomm has not only raised its dividend for 21 consecutive years but also has maintained dividend payments for 22 consecutive years, reflecting a strong commitment to returning value to shareholders. This is further bolstered by the company's performance with a 63.31% total return over the past year, illustrating a robust investment for shareholders. Qualcomm's status as a prominent player in the Semiconductors & Semiconductor Equipment industry is underlined by its liquid assets surpassing short-term obligations and operating with a moderate level of debt, suggesting a stable financial footing.
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