Intel (NASDAQ:INTC) Stock Crosses Below 200 Day Moving Average Following Analyst Downgrade

Key Points

• Intel shares fell below their 200-day moving average, trading as low as $63.20 and closing at $65.76 after JPMorgan cut its price target from $85 to $80 while maintaining a neutral rating.
• Analysts have broadly reduced their expectations, with Intel carrying a consensus “Hold” rating and an average price target of $97.86. Recent actions included downgrades and target cuts from Rosenblatt, Seaport, Susquehanna and Citigroup.
• Although Intel beat third-quarter earnings expectations and reported strong Data Center and AI and Foundry growth, its fourth-quarter outlook was well below forecasts due to weak PC demand, memory shortages, supply constraints and higher costs.

Intel Corporation (NASDAQ:INTC - Get Free Report)'s share price passed below its two hundred day moving average during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $85.00 to $80.00. The stock has a two hundred day moving average of $86.36 and traded as low as $63.20. JPMorgan Chase & Co. currently has a neutral rating on the stock. Intel shares last traded at $65.76, with a volume of 453,680,816 shares.

Several other research firms have also recently issued reports on INTC. Tigress Financial upped their target price on shares of Intel from $118.00 to $145.00 and gave the company a "buy" rating in a research note on Tuesday, September 15th. Rosenblatt Securities reduced their price target on shares of Intel from $80.00 to $70.00 and set a "sell" rating for the company in a research note on Friday. Seaport Research Partners lowered shares of Intel from a "buy" rating to a "neutral" rating in a research note on Friday. Susquehanna decreased their price objective on shares of Intel from $105.00 to $75.00 and set a "neutral" rating for the company in a report on Friday. Finally, Citigroup lowered their price objective on shares of Intel from $130.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, twenty-seven have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $97.86.

Insiders Place Their Bets

In other news, CEO Lip Bu Tan bought 105,263 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the completion of the transaction, the chief executive officer owned 1,314,669 shares of the company's stock, valued at approximately $124,893,555. This trade represents a 8.70% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.05% of the company's stock.

Trending Headlines about Intel

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel exceeded third-quarter expectations, reporting adjusted earnings of $0.52 per share versus a roughly $0.41 consensus estimate. Revenue increased 21% year over year to approximately $16.5 billion. Intel third-quarter earnings report
• Positive Sentiment: Data Center and AI revenue rose 78% to $7.3 billion, while Intel Foundry revenue increased 58% to $6.7 billion. CEO Lip-Bu Tan also highlighted the potential for AI agents to expand the server CPU market. Intel server and AI revenue coverage
• Neutral Sentiment: Intel agreed to acquire Israeli quantum software company Classiq Technologies for about $2.3 billion, seeking to build a full-stack quantum-computing business. The deal may provide a long-term growth option but adds to near-term spending and execution demands. Intel Classiq acquisition
• Negative Sentiment: Fourth-quarter guidance was well below Wall Street expectations: revenue is projected at $15 billion-$16 billion, versus approximately $17.1 billion expected, with adjusted earnings of about $0.25 per share versus roughly $0.45 expected. Management said the PC slowdown could persist through at least the first half of 2027. Reuters Intel outlook report
• Negative Sentiment: Memory shortages and higher component prices are making PCs more expensive, while Intel expects client-computing revenue to weaken. A blast at its Israel facility is expected to cause roughly $300 million-$600 million in revenue disruption, adding to manufacturing constraints. Intel PC slowdown and Israel facility report
• Negative Sentiment: Analysts responded with multiple downgrades and price-target reductions, citing weak PC demand, supply bottlenecks, lower margins, heavy foundry investment and the risk that Intel may not generate free cash flow in 2027. The outlook also triggered a broad semiconductor selloff, pressuring AMD, Nvidia, Broadcom and other chip stocks. Analyst reactions to Intel earnings

Institutional Investors Weigh In On Intel

Several hedge funds and other institutional investors have recently made changes to their positions in INTC. Vestor Capital LLC purchased a new position in Intel during the first quarter valued at approximately $9,441,000. World Investment Advisors boosted its position in Intel by 11.2% in the 1st quarter. World Investment Advisors now owns 62,876 shares of the chip maker's stock worth $2,775,000 after purchasing an additional 6,326 shares in the last quarter. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Intel during the 2nd quarter worth approximately $4,995,000. Western Wealth Management LLC grew its stake in shares of Intel by 57.7% during the 1st quarter. Western Wealth Management LLC now owns 21,223 shares of the chip maker's stock worth $937,000 after purchasing an additional 7,764 shares during the period. Finally, Tcfg Wealth Management LLC acquired a new stake in shares of Intel during the 1st quarter worth approximately $202,000. Hedge funds and other institutional investors own 64.53% of the company's stock.

Intel Stock Performance

The company has a current ratio of 1.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $331.69 billion, a PE ratio of -27.29, a price-to-earnings-growth ratio of 9.78 and a beta of 2.22. The firm's fifty day moving average price is $101.10 and its two-hundred day moving average price is $86.36.

Intel (NASDAQ:INTC - Get Free Report) last posted its earnings results on Thursday, October 29th. The chip maker reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.11. The firm had revenue of $16.51 billion during the quarter, compared to analysts' expectations of $16.56 billion. Intel had a negative net margin of 20.09% and a positive return on equity of 4.55%. The business's revenue was up 20.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.23 EPS. As a group, equities research analysts forecast that Intel Corporation will post 1.05 EPS for the current year.

Intel Company Profile

Intel Corporation NASDAQ: INTC is a global semiconductor company that designs and manufactures computing and connectivity products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for networking, edge computing, graphics, and artificial intelligence workloads.

Through Intel Foundry, the company also provides semiconductor manufacturing and technology-development services for external customers. Intel develops process technologies, advanced packaging, and other manufacturing capabilities intended to support its own products and third-party chip designs.

Founded in 1968 by Robert Noyce and Gordon Moore, Intel helped establish the modern microprocessor industry and has historically supplied processors for PCs, servers, and other computing systems.

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