Intel (NASDAQ:INTC) Shares Gap Down Following Weak Earnings

Key Points

• Intel's stock price gapped down to $20.68 from a previous close of $22.63 following a disappointing earnings announcement, with the last traded price at $20.53.
• The company reported a loss of $0.10 earnings per share, missing estimates by $0.11, while quarterly revenue was $12.86 billion, exceeding expectations.
• Analysts reacted by adjusting their price targets, with JPMorgan lowering it to $20.00 and the average rating for the stock now being "Hold" with a target of $22.25.
• Institutional investors own 64.53% of Intel, with several firms increasing their holdings during the second quarter.

Intel Corporation (NASDAQ:INTC - Get Free Report) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $22.63, but opened at $20.68. Intel shares last traded at $20.53, with a volume of 63,975,005 shares changing hands.

The chip maker reported ($0.10) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.11). The business had revenue of $12.86 billion for the quarter, compared to the consensus estimate of $11.88 billion. Intel had a negative net margin of 38.64% and a negative return on equity of 3.78%. Intel's revenue for the quarter was up .5% on a year-over-year basis. During the same period in the prior year, the business posted $0.02 EPS.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on INTC. Needham & Company LLC reissued a "hold" rating on shares of Intel in a report on Friday. Citigroup reaffirmed a "hold" rating on shares of Intel in a research note on Tuesday, July 8th. Cfra Research raised shares of Intel to a "hold" rating in a research note on Friday, April 25th. Morgan Stanley cut their target price on shares of Intel from $25.00 to $23.00 and set an "equal weight" rating on the stock in a research note on Friday, April 25th. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on shares of Intel in a research note on Wednesday, May 21st. They set a "hold" rating and a $23.00 target price on the stock. Five investment analysts have rated the stock with a sell rating, twenty-seven have issued a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, Intel presently has a consensus rating of "Hold" and a consensus target price of $22.30.

Institutional Trading of Intel

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Freestone Grove Partners LP bought a new position in shares of Intel during the fourth quarter worth $62,654,000. Toronto Dominion Bank lifted its position in Intel by 286.8% during the fourth quarter. Toronto Dominion Bank now owns 10,529,354 shares of the chip maker's stock valued at $211,114,000 after purchasing an additional 7,806,882 shares during the last quarter. 180 Wealth Advisors LLC lifted its position in Intel by 124.9% during the first quarter. 180 Wealth Advisors LLC now owns 127,916 shares of the chip maker's stock valued at $2,905,000 after purchasing an additional 71,049 shares during the last quarter. Alteri Wealth LLC bought a new position in Intel during the fourth quarter valued at $2,379,000. Finally, Gordian Capital Singapore Pte Ltd lifted its position in Intel by 120.7% during the fourth quarter. Gordian Capital Singapore Pte Ltd now owns 64,000 shares of the chip maker's stock valued at $1,282,000 after purchasing an additional 35,000 shares during the last quarter. 64.53% of the stock is owned by hedge funds and other institutional investors.

Intel Stock Down 8.5%

The firm has a market cap of $90.29 billion, a P/E ratio of -4.34 and a beta of 1.15. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.31 and a quick ratio of 0.93. The company's 50-day simple moving average is $21.64 and its 200 day simple moving average is $21.49.

Intel Company Profile

Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services segments. The company's products portfolio comprises central processing units and chipsets, system-on-chips (SoCs), and multichip packages; mobile and desktop processors; hardware products comprising graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products.