Intel (NASDAQ:INTC) Shares Down 10.3% – Should You Sell?

Intel Corporation (NASDAQ:INTC)’s stock price traded down 10.3% on Thursday. The stock traded as low as $51.51 and last traded at $52.25. Approximately 264,237,441 shares changed hands during mid-day trading, an increase of 123% from the average daily volume of 118,650,984 shares. The stock had previously closed at $58.27.

Key Headlines Impacting Intel

Here are the key news stories impacting Intel this week:

• Positive Sentiment: CEO Lip-Bu Tan bought 150,000 shares for about $9.7 million, increasing his holdings by 11.4%. The purchase may signal confidence, although the shares later fell below his purchase price. Details on the CEO’s stock purchase
• Positive Sentiment: Demand for Intel’s server CPUs is reportedly strong, with the company expecting demand to exceed supply for the next couple of years. Its Oracle collaboration could support data-center business growth, though supply constraints may limit how much demand translates into near-term sales. Intel and Oracle collaboration
• Negative Sentiment: The main company-specific pressure is Intel’s fourth-quarter revenue outlook: its $15 billion–$16 billion forecast came in below expectations, despite strong CPU demand. Investors are also weighing softer PC demand. Report on Intel’s fourth-quarter outlook
• Negative Sentiment: A wider semiconductor selloff added pressure, as investors worried that political changes could slow data-center construction and AI infrastructure spending—important sources of potential chip demand. Analysis of the chip-sector selloff

Wall Street Analyst Weigh In

INTC has been the subject of several recent analyst reports. Cantor Fitzgerald cut their price target on Intel from $125.00 to $90.00 and set a “neutral” rating for the company in a research note on Friday, October 30th. Susquehanna decreased their price objective on shares of Intel from $105.00 to $75.00 and set a “neutral” rating on the stock in a report on Friday, October 30th. Wall Street Zen cut shares of Intel from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Bank of America downgraded shares of Intel from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $145.00 to $100.00 in a research note on Friday, October 30th. Finally, Northland Securities set a $93.00 target price on shares of Intel in a research report on Friday, October 30th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, twenty-eight have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $97.42.

Intel Price Performance

The firm has a market cap of $277.71 billion, a PE ratio of -21.68, a price-to-earnings-growth ratio of 6.49 and a beta of 2.42. The company has a 50 day moving average price of $99.38 and a 200 day moving average price of $86.53. The company has a current ratio of 2.31, a quick ratio of 1.86 and a debt-to-equity ratio of 0.47.

Intel (NASDAQ:INTC) last announced its earnings results on Thursday, October 29th. The chip maker reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.11. The company 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 4.70%. The firm’s quarterly revenue was up 20.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.23 earnings per share. On average, sell-side analysts expect that Intel Corporation will post 1.04 EPS for the current year.

Insider Buying and Selling

In related news, CEO Lip Tan acquired 150,000 shares of the company’s stock in a transaction dated 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 purchase, the chief executive officer directly 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 purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.05% of the stock is owned by company insiders.

Institutional Trading of Intel

A number of institutional investors have recently modified their holdings of the company. Vestor Capital LLC bought a new stake in shares of Intel in the first quarter valued at about $9,441,000. University of Texas Texas AM Investment Management Co. bought a new position in Intel during the second quarter worth about $4,995,000. Western Wealth Management LLC increased its position in Intel by 57.7% during the first quarter. Western Wealth Management LLC now owns 21,223 shares of the chip maker’s stock worth $937,000 after acquiring an additional 7,764 shares during the period. Envestnet Asset Management Inc. raised its stake in Intel by 4.7% in the 2nd quarter. Envestnet Asset Management Inc. now owns 1,493,552 shares of the chip maker’s stock worth $208,541,000 after purchasing an additional 67,588 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in 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 worth $4,429,673,000 after purchasing an additional 8,342,514 shares in the last quarter. Hedge funds and other institutional investors own 64.53% of the company’s stock.

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.