Intel (NASDAQ:INTC) Shares Down 1.7% - Should You Sell?

Intel Corporation (NASDAQ:INTC) experienced a drop in its share price, declining by 1.7% during mid-day trading on a recent Thursday. The stock traded as low as $23.06 before closing at $23.65. Over the course of the day, approximately 53,858,621 shares were traded, which represents a decrease of 10% compared to its average daily volume of 60,066,496 shares. The previous closing price for Intel shares was $24.05.

Recent Analyst Ratings Changes

Several analysts have recently updated their ratings on Intel stock. Needham & Company LLC maintained a "hold" rating on the shares in a report published on November 1st. Conversely, HSBC downgraded Intel from a "hold" to a "reduce" rating in an earlier report on August 2nd. That same day, Raymond James also downgraded Intel, changing its rating from "outperform" to "market perform." UBS Group adjusted its target price for Intel from $37.00 to $32.00 while maintaining a "neutral" rating. New Street Research issued a downgrade, lowering its rating from "buy" to "neutral." Currently, six analysts consider the stock a sell, while twenty-five recommend holding it, and only one analyst suggests buying it. The consensus rating for Intel stock averages to a "Hold" with a target price of $30.12 as reported by MarketBeat.com.

Intel Stock Performance

As mentioned earlier, Intel's stock has gone down by 1.7%. The company's financial ratios include a quick ratio of 0.97, a current ratio of 1.31, and a debt-to-equity ratio of 0.44. Intel's market capitalization stands at $102 billion with a price-to-earnings (PE) ratio of -6.36 and a beta of 1.03. The fifty-day moving average for Intel shares is $23.38, while the 200-day moving average is $25.99.

Quarterly Earnings Results

Intel recently announced its quarterly earnings on October 31st, reporting a loss of $0.46 in earnings per share, which fell short of the analysts' predictions that the earnings would only be a loss of $0.02. The total revenue reported was $13.30 billion, exceeding expectations of $13.02 billion. However, Intel recorded a negative return on equity of 1.71% and a significant net margin deficit of 29.42%. The revenue for this quarter declined by 6.3% compared to the same period in the previous year. This time last year, Intel recorded earnings of $0.28 per share. Analysts project an average estimate of -0.87 EPS for the current fiscal year.

Insider Trading Activity

In other news, Intel’s Executive Vice President, Michelle Johnston Holthaus, sold 25,000 shares of the company on November 7th, at an average price of $26.00, resulting in a total transaction value of $650,000. Following this transaction, her remaining shares in the company are now valued at approximately $7.1 million. This sale reflects an 8.38% decrease in her holdings, which has been disclosed through a legal filing with the SEC. Insiders currently hold only 0.04% of Intel’s stock.

Institutional Investor Activity

Recent activity among institutional investors shows notable changes in stock ownership. Janus Henderson Group PLC increased its stake in Intel by 14.9% during the first quarter, now holding 473,056 shares valued at around $20.89 million following the acquisition of an additional 61,516 shares. Austin Wealth Management LLC entered the scene with a new investment worth $290,000 in Intel. Meanwhile, Redwood Grove Capital LLC also increased its holdings by 6%, accumulating a total of 203,325 shares worth nearly $8.98 million. Notably, Cetera Investment Advisers expanded its position by 262.9%, yielding a current ownership of 787,130 shares valued at approximately $34.77 million. Overall, institutional investors collectively own 64.53% of Intel stock.

Company Overview

Intel Corporation is a prominent player in the technology sector, focusing on designing, developing, and manufacturing various computing products and services worldwide. The company operates through several segments: Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services. Intel's diverse portfolio includes central processing units (CPUs), chipsets, system-on-chips (SoCs), desktop and mobile processors, graphics processing units (GPUs), and other semiconductor products aimed at various market needs.

Conclusion

The decline in Intel's share price, current analyst ratings, and recent financial results raise questions for investors considering the future direction of the stock. While some analysts maintain a "hold" rating, others suggest caution, prompting potential strategies for investors. Those looking to make informed decisions should monitor the ongoing developments surrounding the company.

Intel, Stocks, Earnings