Intel Corporation (INTC) Downgraded by Zacks Investment Research
Zacks Investment Research lowered shares of Intel Corporation (NASDAQ:INTC) from a buy rating to a hold rating in a report released on Tuesday.
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. Jefferies Group LLC set a $38.00 price target on Intel Corporation and gave the stock a hold rating in a report on Saturday, June 3rd. B. Riley reiterated a buy rating and issued a $44.00 price target 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 price target on the stock in a report on Monday, May 1st. Bank of America Corporation downgraded Intel Corporation from a buy rating to a neutral rating and reduced their price target for the stock from $42.00 to $38.00 in a report on Wednesday, June 21st. Finally, Summit Redstone reiterated a hold rating on shares of Intel Corporation in a report on Saturday, July 22nd. Six equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, twenty-eight have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average price target of $40.55.
Shares of Intel Corporation (NASDAQ:INTC) traded up 0.06% during trading on Tuesday, hitting $35.09. The company had a trading volume of 12,821,972 shares. The stock has a market capitalization of $164.89 billion, a P/E ratio of 13.39 and a beta of 1.02. The firm’s 50 day moving average is $35.31 and its 200-day moving average is $35.55. Intel Corporation has a 52 week low of $33.23 and a 52 week high of $38.45.
Intel Corporation (NASDAQ:INTC) last issued its quarterly earnings results on Thursday, July 27th. The chip maker reported $0.72 earnings per share for the quarter, topping the 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 the consensus estimate of $14.39 billion. During the same period in the prior year, the business posted $0.59 earnings per share. The company’s revenue for the quarter was up 9.1% on a year-over-year basis. Equities research analysts anticipate that Intel Corporation will post $3.01 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 1st. Investors of record on Monday, August 7th were issued a $0.2725 dividend. This represents a $1.09 dividend on an annualized basis and a yield of 3.11%. The ex-dividend date was Thursday, August 3rd. Intel Corporation’s dividend payout ratio is presently 41.76%.
In related news, insider Venkata S. M. Renduchintala sold 13,996 shares of the company’s stock in a transaction that occurred on Monday, July 31st. The stock was sold at an average price of $35.47, for a total value of $496,438.12. Following the transaction, the insider now directly owns 1,536 shares in the company, valued at $54,481.92. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Venkata S. M. Renduchintala sold 1,424 shares of the company’s stock in a transaction that occurred on 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 transaction, the insider now owns 1,536 shares in the company, valued at $55,910.40. The disclosure for this sale can be found here. Insiders sold 91,921 shares of company stock worth $3,130,162 over the last quarter. 0.08% of the stock is currently owned by insiders.
A number of hedge funds have recently made changes to their positions in INTC. Intl Fcstone Inc. purchased a new stake in shares of Intel Corporation during the second quarter worth about $410,000. M Holdings Securities Inc. raised its stake in shares of Intel Corporation by 29.0% in the second quarter. M Holdings Securities Inc. now owns 20,188 shares of the chip maker’s stock worth $681,000 after buying an additional 4,542 shares during the last quarter. Griffin Asset Management Inc. purchased a new stake in shares of Intel Corporation during the second quarter worth about $4,400,000. Gs Investments Inc. purchased a new stake in shares of Intel Corporation during the second quarter worth about $820,000. Finally, Aldebaran Financial Inc. raised its stake in shares of Intel Corporation by 2.6% in the second quarter. Aldebaran Financial Inc. now owns 8,713 shares of the chip maker’s stock worth $294,000 after buying an additional 218 shares during the last quarter. 67.07% of the stock is currently owned by institutional investors.
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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