Intel (NASDAQ:INTC) Stock Falls 2.5% After Analyst Downgrade

Key Points

• Intel shares fell 2.5% to $59.66 after Bank of America cut its price target from $100 to $80, while maintaining a neutral rating.
• Analyst views remain mixed: MarketBeat reports an average rating of “Hold” and an average price target of $96.93; Roth Capital also downgraded Intel and reduced its target to $70.
• CEO Lip-Bu Tan bought 150,000 shares for about $9.7 million. In its latest quarter, Intel beat earnings-per-share estimates, but revenue came in slightly below expectations.

Intel Corporation (NASDAQ:INTC - Get Free Report)'s share price traded down 2.5% during mid-day trading on Friday 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 $57.00 and last traded at $59.66. Approximately 101,277,590 shares changed hands during trading, a decline of 15% from the average session volume of 119,014,820 shares. The stock had previously closed at $61.20.

Several other research analysts also recently weighed in on INTC. Evercore reiterated an "outperform" rating and set a $133.00 price target on shares of Intel in a research note on Friday, October 30th. Barclays upgraded Intel from a "hold" rating to an "overweight" rating in a research note on Wednesday, September 16th. Roth Capital downgraded shares of Intel from a "buy" rating to a "neutral" rating and dropped their price objective for the company from $120.00 to $70.00 in a report on Friday, October 30th. Northland Securities set a $93.00 target price on shares of Intel in a research report on Friday, October 30th. Finally, Cantor Fitzgerald reduced their target price on shares of Intel from $125.00 to $90.00 and set a "neutral" rating for the company in a research note on Friday, October 30th. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, twenty-eight have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $96.93.

Insider Transactions at Intel

In other Intel news, CEO Lip Tan acquired 150,000 shares of the company's stock in a transaction that occurred on Monday, November 2nd. The stock was bought 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 of the company's stock, valued at approximately $94,808,024.37. This represents a 11.41% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.05% of the stock is owned by corporate insiders.

Key Headlines Impacting Intel

Investors following INTC have been watching these headlines:

• Positive Sentiment: ETFs recorded about $79 million in net purchases of Intel shares on Nov. 11, with 54 funds buying and 11 selling. Article: Intel sees net ETF buying
• Negative Sentiment: Chip stocks fell broadly as investors weighed inflation data and uncertainty over Nvidia’s leadership. The sector reversal followed recent trading driven by Nvidia-related news. Article: Chip stocks slide
• Negative Sentiment: A comparison of Intel with AMD favored AMD, citing stronger prospects and a more reasonable valuation. Another analyst commentary said it would wait for Intel’s fourth-quarter results before turning more positive, reflecting concern about valuation and execution. Article: AMD or Intel comparison Article: Analyst pauses pending Q4 results

Institutional Trading of Intel

A number of large investors have recently modified their holdings of INTC. Primecap Management Co. CA bought a new position in shares of Intel in the 2nd quarter worth $10,507,291,000. Legal & General Group Plc bought a new stake in shares of Intel during the 2nd quarter worth $4,096,110,000. Assenagon Asset Management S.A. lifted its holdings in shares of Intel by 87.1% during the 3rd quarter. Assenagon Asset Management S.A. now owns 30,214,769 shares of the chip maker's stock worth $3,632,722,000 after acquiring an additional 14,063,302 shares during the last quarter. Canada Pension Plan Investment Board bought a new stake in shares of Intel during the 2nd quarter worth $1,848,438,000. Finally, Bank of America Corp DE grew its position in Intel by 35.7% in the second quarter. Bank of America Corp DE now owns 31,724,362 shares of the chip maker's stock worth $4,429,673,000 after acquiring an additional 8,342,514 shares in the last quarter. Institutional investors own 64.53% of the company's stock.

Intel Price Performance

The company has a quick ratio of 1.95, a current ratio of 2.31 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $317.09 billion, a PE ratio of -24.76, a price-to-earnings-growth ratio of 6.68 and a beta of 2.42. The firm's 50-day moving average is $95.61 and its 200-day moving average is $86.83.

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

About Intel

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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