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

Intel Corporation (NASDAQ:INTC)’s stock price was down 8.8% during trading 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. Approximately 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.

INTC has been the subject of several other research reports. Seaport Research Partners downgraded shares of Intel from a “buy” rating to a “neutral” rating in a report on Friday. Roth Capital downgraded shares of Intel from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $120.00 to $70.00 in a research report on Friday. Daiwa Securities Group cut Intel from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Tigress Financial upped their target price on Intel from $118.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday, September 15th. Finally, Rosenblatt Securities lowered their target price on Intel from $80.00 to $70.00 and set a “sell” rating on the stock in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, twenty-eight have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $97.42.

Insider Activity at Intel

In related news, CEO Lip Bu Tan acquired 105,263 shares of the stock in a transaction on Tuesday, August 11th. The shares were purchased at an average price of $95.00 per share, for a total transaction of $9,999,985.00. Following the purchase, the chief executive officer directly owned 1,314,669 shares in the company, valued at approximately $124,893,555. The trade was a 8.70% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.05% of the company’s stock.

More Intel News

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 Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. ABS Investment Management LLC acquired a new stake in shares of Intel in the 2nd quarter valued at $694,101,000. Montgomery Financial Services LLC bought a new stake in shares of Intel during the 2nd quarter worth $26,000. Knuff & Co LLC bought a new stake in shares of Intel during the 2nd quarter worth $29,000. Glynn Capital Management LLC bought a new stake in shares of Intel during the 2nd quarter worth $29,000. Finally, Pathway Financial Advisers LLC acquired a new stake in Intel in the third quarter valued at about $25,000. 64.53% of the stock is currently owned by institutional investors and hedge funds.

Intel Stock Down 8.8%

The company has a quick ratio of 1.86, a current ratio of 2.21 and a debt-to-equity ratio of 0.35. The firm has a 50 day moving average of $101.10 and a two-hundred day moving average of $86.36. The firm has a market capitalization of $302.49 billion, a price-to-earnings ratio of -24.88, a price-to-earnings-growth ratio of 6.85 and a beta of 2.42.

Intel (NASDAQ:INTC) last issued its earnings results on Thursday, October 29th. The chip maker reported $0.52 EPS for the quarter, topping the consensus estimate of $0.41 by $0.11. The firm had revenue of $16.51 billion during the quarter, compared to the consensus estimate of $16.56 billion. Intel had a positive return on equity of 4.42% and a negative net margin of 20.09%. The business’s quarterly revenue was up 20.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.23 earnings per share. As a group, sell-side analysts anticipate that Intel Corporation will post 1.07 EPS for the current fiscal 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.