Intel Corp. (INTC) Rating Lowered to Hold at Zacks Investment Research
Intel Corp. (NASDAQ:INTC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Intel is one of the world’s leading producers of semiconductor components and digital platforms. Although the company’s third-quarter earnings were impressive, fourth quarter guidance disappointed us. Data center is currently the most promising area, where macro factors are impacting the enterprise side (cloud remains strong). Intel’s investments in IoT, security and memory could pay off this year but are still very small portions of its revenue. Also, while the broader product and price range, greater integration in products, process technology lead, Chinese collaborations and Win 10-related PC refresh can help the client business, certain issues (revenue concentration, declining PC demand, failed mobile initiative) are dampeners. ARM-based competition claiming greater performance at lower cost of ownership, major customers like Google looking for alternatives and China weakness are other concerns.”
Several other research firms have also commented on INTC. B. Riley reaffirmed a “buy” rating and set a $42.00 target price on shares of Intel Corp. in a report on Wednesday, August 17th. Robert W. Baird increased their price objective on Intel Corp. from $40.00 to $42.00 and gave the stock an “outperform” rating in a report on Monday, September 19th. Brean Capital reissued a “buy” rating and issued a $40.00 price objective (up from $38.00) on shares of Intel Corp. in a report on Thursday, September 22nd. Sanford C. Bernstein reissued a “market perform” rating and issued a $35.00 price objective (up from $33.00) on shares of Intel Corp. in a report on Friday, October 21st. Finally, Nomura reissued a “buy” rating and issued a $40.00 price objective (down from $42.00) on shares of Intel Corp. in a report on Wednesday, October 19th. Three equities research analysts have rated the stock with a sell rating, fifteen have issued a hold rating, thirty-two have issued a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $39.87.
Intel Corp. (NASDAQ:INTC) opened at 34.91 on Wednesday. The firm has a market capitalization of $165.44 billion, a PE ratio of 16.38 and a beta of 1.07. Intel Corp. has a one year low of $27.68 and a one year high of $38.36. The company’s 50-day moving average price is $36.00 and its 200 day moving average price is $34.19.
Intel Corp. (NASDAQ:INTC) last posted its earnings results on Tuesday, October 18th. The chip maker reported $0.80 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.73 by $0.07. The company earned $15.78 billion during the quarter, compared to analyst estimates of $15.58 billion. Intel Corp. had a return on equity of 21.05% and a net margin of 17.90%. The business’s revenue was up 9.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.64 earnings per share. On average, analysts forecast that Intel Corp. will post $2.67 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 1st. Shareholders of record on Monday, November 7th will be given a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 2.98%. The ex-dividend date is Thursday, November 3rd. Intel Corp.’s dividend payout ratio (DPR) is currently 49.06%.
In other news, CEO Brian M. Krzanich sold 67,508 shares of the stock in a transaction on Monday, October 3rd. The shares were sold at an average price of $37.71, for a total transaction of $2,545,726.68. Following the completion of the sale, the chief executive officer now directly owns 420,506 shares in the company, valued at $15,857,281.26. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Gregory R. Pearson sold 250,192 shares of the stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $36.50, for a total transaction of $9,132,008.00. Following the sale, the vice president now owns 92,826 shares of the company’s stock, valued at $3,388,149. The disclosure for this sale can be found here. 0.09% of the stock is currently owned by company insiders.
Several large investors have recently bought and sold shares of the company. Cognios Capital LLC boosted its stake in Intel Corp. by 0.3% in the third quarter. Cognios Capital LLC now owns 7,648 shares of the chip maker’s stock valued at $288,000 after buying an additional 24 shares during the period. Day & Ennis LLC boosted its stake in Intel Corp. by 0.4% in the second quarter. Day & Ennis LLC now owns 7,459 shares of the chip maker’s stock valued at $245,000 after buying an additional 27 shares during the period. D. Scott Neal Inc. boosted its stake in Intel Corp. by 0.7% in the second quarter. D. Scott Neal Inc. now owns 4,969 shares of the chip maker’s stock valued at $163,000 after buying an additional 35 shares during the period. Jackson Grant Investment Advisers Inc. boosted its stake in Intel Corp. by 0.8% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 4,496 shares of the chip maker’s stock valued at $147,000 after buying an additional 37 shares during the period. Finally, Norris Perne & French LLP MI boosted its stake in Intel Corp. by 0.7% in the third quarter. Norris Perne & French LLP MI now owns 7,106 shares of the chip maker’s stock valued at $268,000 after buying an additional 46 shares during the period. Institutional investors own 64.48% of the company’s stock.
About Intel Corp.
Intel Corporation is engaged in the design and manufacture of digital technology platforms. The Company’s segments include Client Computing Group (CCG), Data Center Group (DCG), Internet of Things Group (IOTG), Software and Services (SSG) and All Other. CCG segment includes platforms designed for notebooks (including Ultrabook devices), 2 in 1 systems, desktops (including all-in-ones and personal computers (PCs)), tablets, phones, wireless and wired connectivity products, and mobile communication components.
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