Intel (NASDAQ:INTC) Stock Falls 8.8% Following Analyst Downgrade

Intel Corporation (NASDAQ:INTC)’s share price dropped 8.8% on Monday after Freedom Broker downgraded the stock from a buy rating to a hold rating. Freedom Broker now has a $90.00 price target on the stock, down from their previous price target of $100.00. Intel traded as low as $59.40 and last traded at $59.97. 227,006,398 shares changed hands during mid-day trading, an increase of 93% from the average session volume of 117,698,563 shares. The stock had previously closed at $65.76.

A number of other equities analysts have also recently issued reports on the company. Barclays upgraded Intel from a “hold” rating to an “overweight” rating in a report on Wednesday, September 16th. Truist Financial reduced their price objective on Intel from $108.00 to $72.00 and set a “hold” rating for the company in a research report on Friday. Bank of America downgraded Intel from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $145.00 to $100.00 in a report on Friday. Mizuho lifted their target price on Intel from $92.00 to $114.00 and gave the company a “neutral” rating in a research report on Tuesday, October 6th. Finally, Citigroup cut their target price on Intel from $130.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday. 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 stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $97.42.

Insider Activity

In related news, CEO Lip Bu Tan bought 105,263 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The shares were acquired at an average price of $95.00 per share, for a total transaction of $9,999,985.00. Following the completion of the acquisition, the chief executive officer owned 1,314,669 shares of the company’s stock, valued at approximately $124,893,555. The trade was a 8.70% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.05% of the company’s stock.

Intel News Summary

Here are the key news stories impacting Intel this week:

• Positive Sentiment: Intel’s data-center business is benefiting from strong AI-related server demand. Management expects the global server CPU market to grow substantially over the next five years, while third-quarter revenue rose 20.9% year over year to $16.51 billion and adjusted earnings exceeded analysts’ estimates. INTC Q3 Earnings Call Highlights AI Demand and PC Weakness
• Positive Sentiment: Some investors view the selloff as a potential long-term entry point, citing improving server demand, the launch of products using Intel’s 18A manufacturing process and financial backing from the U.S. government, Nvidia and SoftBank. Technical analysts also describe INTC as oversold after the recent decline. Intel Stock Cratered 28%, Opening a Massive Buying Opportunity

Institutional Investors Weigh In On Intel

Several large investors have recently made changes to their positions in the stock. State Street Corp lifted its stake in Intel by 1.2% in the second quarter. State Street Corp now owns 216,849,675 shares of the chip maker’s stock valued at $30,278,720,000 after acquiring an additional 2,528,657 shares during the last quarter. Primecap Management Co. CA acquired a new position in shares of Intel during the 2nd quarter worth about $10,507,291,000. Bank of America Corp DE raised its holdings in shares of Intel by 35.7% in the 2nd quarter. Bank of America Corp DE now owns 31,724,362 shares of the chip maker’s stock valued at $4,429,673,000 after purchasing an additional 8,342,514 shares during the period. Legal & General Group Plc bought a new stake in shares of Intel in the 2nd quarter valued at about $4,096,110,000. Finally, Assenagon Asset Management S.A. lifted its stake in Intel by 87.1% in the 3rd quarter. Assenagon Asset Management S.A. now owns 30,214,769 shares of the chip maker’s stock valued at $3,632,722,000 after purchasing an additional 14,063,302 shares during the last quarter. Institutional investors and hedge funds own 64.53% of the company’s stock.

Intel Price Performance

The company has a current ratio of 2.21, a quick ratio of 1.86 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $302.49 billion, a price-to-earnings ratio of -24.88, a P/E/G ratio of 6.85 and a beta of 2.42. The company’s 50 day moving average is $101.10 and its 200-day moving average is $86.36.

Intel (NASDAQ:INTC) last announced its quarterly 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. Intel had a positive return on equity of 4.42% and a negative net margin of 20.09%. The firm had revenue of $16.51 billion for the quarter, compared to the consensus estimate of $16.56 billion. During the same quarter in the previous year, the business earned $0.23 earnings per share. The business’s revenue was up 20.9% compared to the same quarter last year. Equities research analysts anticipate that Intel Corporation will post 1.07 earnings per share for the current year.

About Intel

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.