Zacks Investment Research Downgrades Intel Corporation (INTC) to Hold
Intel Corporation (NASDAQ:INTC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors 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.”
A number of other research analysts have also recently issued reports on INTC. B. Riley reiterated a “buy” rating and issued a $44.00 target price on shares of Intel Corporation in a research report on Wednesday, May 3rd. Vetr cut Intel Corporation from a “strong-buy” rating to a “buy” rating and set a $40.26 target price on the stock. in a research report on Tuesday, August 8th. BidaskClub upgraded Intel Corporation from a “hold” rating to a “buy” rating in a research report on Thursday, August 10th. Jefferies Group LLC set a $38.00 target price on Intel Corporation and gave the company a “hold” rating in a research report on Saturday, June 3rd. Finally, Sanford C. Bernstein set a $30.00 target price on Intel Corporation and gave the company a “sell” rating in a research report on Tuesday. Five equities research analysts have rated the stock with a sell rating, fifteen have given a hold rating and twenty-eight have given a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $40.55.
Shares of Intel Corporation (INTC) opened at 35.17 on Wednesday. The firm’s 50-day moving average is $35.05 and its 200-day moving average is $35.66. The company has a market cap of $165.26 billion, a price-to-earnings ratio of 13.42 and a beta of 1.01. Intel Corporation has a one year low of $33.23 and a one year high of $38.45.
Intel Corporation (NASDAQ:INTC) last released its earnings results on Thursday, July 27th. The chip maker reported $0.72 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.68 by $0.04. Intel Corporation had a return on equity of 21.86% and a net margin of 20.60%. The firm had revenue of $14.76 billion for the quarter, compared to analysts’ expectations of $14.39 billion. During the same quarter in the previous year, the business posted $0.59 earnings per share. The business’s revenue for the quarter was up 9.1% on a year-over-year basis. Analysts expect that Intel Corporation will post $3.01 EPS for the current fiscal year.
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In other Intel Corporation news, insider Venkata S. M. Renduchintala sold 13,996 shares of the firm’s stock in a transaction dated Monday, July 31st. The stock was sold at an average price of $35.47, for a total value of $496,438.12. Following the sale, the insider now owns 1,536 shares of the company’s stock, valued at approximately $54,481.92. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Venkata S. M. Renduchintala sold 1,424 shares of the firm’s stock in a transaction dated Monday, August 7th. The shares were sold at an average price of $36.40, for a total value of $51,833.60. Following the completion of the sale, the insider now directly owns 1,536 shares in the company, valued at approximately $55,910.40. The disclosure for this sale can be found here. In the last ninety days, insiders sold 91,921 shares of company stock worth $3,130,162. Insiders own 0.09% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in Intel Corporation during the fourth quarter valued at $1,684,790,000. Janus Henderson Group PLC boosted its stake in Intel Corporation by 4,951.1% in the second quarter. Janus Henderson Group PLC now owns 20,455,051 shares of the chip maker’s stock valued at $690,156,000 after buying an additional 20,050,088 shares during the last quarter. Capital Research Global Investors boosted its stake in Intel Corporation by 9.1% in the second quarter. Capital Research Global Investors now owns 128,581,621 shares of the chip maker’s stock valued at $4,338,344,000 after buying an additional 10,744,753 shares during the last quarter. Capital World Investors boosted its stake in Intel Corporation by 5.5% in the second quarter. Capital World Investors now owns 197,750,361 shares of the chip maker’s stock valued at $6,672,097,000 after buying an additional 10,257,260 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in Intel Corporation by 2.5% in the second quarter. Vanguard Group Inc. now owns 333,500,073 shares of the chip maker’s stock valued at $11,252,292,000 after buying an additional 8,087,302 shares during the last quarter. 67.31% of the stock is currently owned by hedge funds and other institutional investors.
About Intel Corporation
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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