Intel (NASDAQ:INTC) Stock Falls 2.1% on Analyst Downgrade

Key Points

• Intel shares fell 2.1% after Bank of America cut its price target from $100 to $80 while maintaining a neutral rating.
• Analyst views remain mixed, but the consensus rating is “Hold” with an average price target of $96.93.
• CEO Lip-Bu Tan bought 150,000 Intel shares for about $9.7 million, increasing his stake by 11.41%.

Intel Corporation (NASDAQ:INTC - Get Free Report)'s stock price was down 2.1% during mid-day trading on Thursday after Bank of America lowered their price target on the stock from $100.00 to $80.00. Bank of America currently has a neutral rating on the stock. Intel traded as low as $59.41 and last traded at $61.20. 78,998,423 shares changed hands during mid-day trading, a decline of 34% from the average daily volume of 119,103,180 shares. The stock had previously closed at $62.50.

A number of other research analysts also recently commented on the company. Rosenblatt Securities lowered their target price on Intel from $80.00 to $70.00 and set a "sell" rating for the company in a research report on Friday, October 30th. Northland Securities set a $93.00 price target on shares of Intel in a research report on Friday, October 30th. Citigroup reduced their price target on shares of Intel from $130.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday, October 30th. Susquehanna decreased their price target on shares of Intel from $105.00 to $75.00 and set a "neutral" rating on the stock in a research note on Friday, October 30th. Finally, Roth Capital lowered shares of Intel from a "buy" rating to a "neutral" rating and lowered their price objective for the company from $120.00 to $70.00 in a research report on Friday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, twenty-eight have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $96.93.

Insiders Place Their Bets

In other news, CEO Lip Tan bought 150,000 shares of Intel stock in a transaction dated Monday, November 2nd. The shares were acquired at an average price of $64.73 per share, with a total value of $9,709,500.00. Following the completion of the purchase, the chief executive officer owned 1,464,669 shares in the company, valued at $94,808,024.37. The trade was a 11.41% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.05% of the stock is owned by company insiders.

Key Stories Impacting Intel

These are some of the INTC stories that stood out recently:

• Positive Sentiment: Potential demand from hyperscalers for Intel server CPUs could support earnings growth over time, offering a counterweight to near-term weakness in its PC business. Article: Prediction: This Will Be Intel’s Stock Price After 1 Year
• Negative Sentiment: Reports of Nvidia CEO Jensen Huang’s departure or possible exit have unsettled semiconductor stocks. Investors are weighing what new leadership could mean for Nvidia’s roughly $13 billion Intel stake and the companies’ joint chip roadmap; reports indicate forced selling is not expected, but future collaboration is uncertain. Article: Intel Stocks Fall as NVIDIA CEO Exit Clouds Partnership Stake
• Negative Sentiment: Bank of America cut its Intel price target from $100 to $80 and maintained a neutral rating, reflecting a more cautious outlook even though the new target remains above the current share price. Article: Bank of America Intel Rating and Price Target

Hedge Funds Weigh In On Intel

A number of large investors have recently made changes to their positions in INTC. Meeder Advisory Services Inc. grew its stake in shares of Intel by 26.1% during the third quarter. Meeder Advisory Services Inc. now owns 88,107 shares of the chip maker's stock valued at $10,593,000 after buying an additional 18,229 shares during the last quarter. Daybright Advisory Services Inc. bought a new stake in shares of Intel during the 3rd quarter worth approximately $203,000. Benjamin Edwards Inc. lifted its stake in shares of Intel by 23.1% during the 3rd quarter. Benjamin Edwards Inc. now owns 33,068 shares of the chip maker's stock worth $3,976,000 after acquiring an additional 6,195 shares during the last quarter. BNP Paribas lifted its stake in shares of Intel by 25.4% during the 3rd quarter. BNP Paribas now owns 28,570 shares of the chip maker's stock worth $3,579,000 after acquiring an additional 5,781 shares during the last quarter. Finally, Jackson Thornton Wealth Management LLC boosted its holdings in Intel by 6.1% during the 3rd quarter. Jackson Thornton Wealth Management LLC now owns 14,749 shares of the chip maker's stock valued at $1,773,000 after acquiring an additional 849 shares during the period. 64.53% of the stock is owned by hedge funds and other institutional investors.

Intel Trading Down 2.1%

The stock has a fifty day moving average of $96.19 and a 200-day moving average of $86.73. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.95 and a current ratio of 2.31. The company has a market cap of $325.28 billion, a PE ratio of -25.39, a PEG ratio of 6.22 and a beta of 2.42.

Intel (NASDAQ:INTC - Get Free Report) last released its earnings results on Thursday, October 29th. The chip maker reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.41 by $0.11. The business had revenue of $16.51 billion for the quarter, compared to analyst estimates of $16.56 billion. Intel had a positive return on equity of 4.70% and a negative net margin of 20.09%. The business's revenue was up 20.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.23 earnings per share. Sell-side analysts anticipate that Intel Corporation will post 1.04 EPS for the current fiscal year.

Intel Company Profile

Intel Corporation is a semiconductor company that designs and manufactures processors and related technologies. Its products include central processing units for personal computers and servers, graphics and AI accelerators, and platforms and components for data center, networking, and edge computing applications. The company also operates Intel Foundry, which provides semiconductor manufacturing, packaging, and related services for Intel and external customers. Intel serves customers and businesses around the world through its products, technologies, and manufacturing operations.

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