Intel Corporation (INTC) Cut to Hold at Zacks Investment Research
Intel Corporation (NASDAQ:INTC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Intel’s second-quarter 2017 results demonstrated the company’s growing focus on the data-centric part of the business. The recent launch of Xeon Scalable is anticipated to benefit its footprint in the data center as well as AI and IoT space, going forward. Further, anticipated improvement in cost structure and lower spending, primarily due to improving operational efficiency will aid in expansion of margins going forward. Additionally, aggressive share buyback will boost the bottom line in 2017. However, we note that Intel has underperformed the industry on a year-to-date basis, which can be attributed to growing competition from AMD in the data center space. We also note that the top-PC makers like HP, Lenovo, and Asus are set to launch PCs based on Qualcomm’s ARM-based Snapdragon processor, which intensifies competition for Intel. We believe that this is a significant headwind amid declining PC shipments.”
Other equities research analysts also recently issued reports about the company. B. Riley reiterated a “buy” rating and issued a $44.00 target price on shares of Intel Corporation in a report on Wednesday, May 3rd. Vetr upgraded Intel Corporation from a “sell” rating to a “hold” rating and set a $35.44 target price for the company in a report on Monday, May 1st. Jefferies Group LLC set a $38.00 target price on Intel Corporation and gave the stock a “hold” rating in a report on Saturday, June 3rd. Cowen and Company reiterated a “market perform” rating and issued a $39.00 target price on shares of Intel Corporation in a report on Friday, April 28th. Finally, Wells Fargo & Company reiterated an “outperform” rating and issued a $45.00 target price on shares of Intel Corporation in a report on Wednesday, April 19th. Five research analysts have rated the stock with a sell rating, sixteen have given a hold rating and twenty-seven have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $40.55.
Shares of Intel Corporation (NASDAQ INTC) traded down 0.8336% during mid-day trading on Wednesday, hitting $35.6999. The stock had a trading volume of 9,865,476 shares. The stock’s 50-day moving average is $34.96 and its 200-day moving average is $35.67. The firm has a market capitalization of $167.75 billion, a PE ratio of 13.6259 and a beta of 1.01. Intel Corporation has a 1-year low of $33.23 and a 1-year high of $38.45.
Intel Corporation (NASDAQ:INTC) last issued its earnings results on Thursday, July 27th. The chip maker reported $0.72 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.68 by $0.04. The business had revenue of $14.76 billion during the quarter, compared to the consensus estimate of $14.39 billion. Intel Corporation had a return on equity of 21.86% and a net margin of 20.60%. The firm’s revenue for the quarter was up 9.1% on a year-over-year basis. During the same period in the previous year, the company posted $0.59 earnings per share. Equities analysts expect that Intel Corporation will post $3.01 earnings per share for the current year.
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In related news, CEO Brian M. Krzanich sold 72,173 shares of the stock in a transaction dated Monday, July 3rd. The stock was sold at an average price of $33.69, for a total transaction of $2,431,508.37. Following the completion of the sale, the chief executive officer now directly owns 534,746 shares in the company, valued at approximately $18,015,592.74. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Robert Holmes Swan bought 13,888 shares of the company’s stock in a transaction that occurred on Monday, June 5th. The shares were bought at an average price of $36.31 per share, with a total value of $504,273.28. Following the completion of the acquisition, the chief financial officer now directly owns 8,774 shares in the company, valued at $318,583.94. The disclosure for this purchase can be found here. Insiders have sold a total of 91,921 shares of company stock valued at $3,130,162 over the last 90 days. 0.09% of the stock is currently owned by company insiders.
A number of large investors have recently modified their holdings of the stock. Vident Investment Advisory LLC boosted its stake in shares of Intel Corporation by 1.1% in the fourth quarter. Vident Investment Advisory LLC now owns 70,927 shares of the chip maker’s stock valued at $2,573,000 after buying an additional 777 shares in the last quarter. Origin Asset Management LLP bought a new stake in shares of Intel Corporation during the fourth quarter valued at $22,306,000. Patriot Financial Group Insurance Agency LLC bought a new stake in shares of Intel Corporation during the fourth quarter valued at $446,000. Norges Bank bought a new stake in shares of Intel Corporation during the fourth quarter valued at $1,684,790,000. Finally, Sowell Financial Services LLC bought a new stake in shares of Intel Corporation during the fourth quarter valued at $3,636,000. Institutional investors own 67.31% of the company’s stock.
Intel Corporation Company Profile
Intel Corporation is engaged in designing and manufacturing products and technologies, such as the cloud. The Company’s segments are Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Non-Volatile Memory Solutions Group (NSG), Intel Security Group (ISecG), Programmable Solutions Group (PSG), All Other and New Technology Group (NTG).
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