Intel’s (INTC) Sell Rating Reiterated at Northland Securities
Intel (NASDAQ:INTC)‘s stock had its “sell” rating reiterated by analysts at Northland Securities in a research report issued on Friday. They currently have a $38.00 price target on the chip maker’s stock. Northland Securities’ price objective would suggest a potential downside of 30.06% from the stock’s current price.
The analysts wrote, “We believe that Intel continues to struggle with its modem business as it is likely unprofitable and consuming capacity that could be deployed for more profitable pursuits. We don’t think the Company can abandon Apple at this point, so a simple solution would be too sell the modem business to Apple. We think it would be a significant catalyst for the shares. We note that this idea and $5 yields a latte, but we still think it is worth consideration. We believe that Intel continues to have issues with its 5G modem development. We have also heard from contacts that the Company is considering manufacturing its 5G modem at TSMC instead of internally. This would likely push commercialization into CY21. In addition, Apple is also Intel’s only customer, and they are opening a facility in San Diego presumably to develop its own modem chips.””
Other research analysts also recently issued research reports about the stock. ValuEngine upgraded shares of Intel from a “sell” rating to a “hold” rating in a research report on Thursday, December 13th. UBS Group downgraded shares of Intel from a “buy” rating to a “hold” rating in a research report on Thursday, November 29th. Macquarie set a $58.00 target price on shares of Intel and gave the company a “buy” rating in a research report on Monday, November 19th. Evercore ISI dropped their target price on shares of Intel from $54.00 to $50.00 and set a “positive” rating on the stock in a research report on Monday, January 14th. Finally, BidaskClub upgraded shares of Intel from a “hold” rating to a “buy” rating in a research report on Friday, February 8th. Six analysts have rated the stock with a sell rating, fourteen have given a hold rating and twenty have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $54.33.
Intel (NASDAQ:INTC) last issued its quarterly earnings results on Thursday, January 24th. The chip maker reported $1.28 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.22 by $0.06. The firm had revenue of $18.66 billion for the quarter, compared to the consensus estimate of $19.02 billion. Intel had a net margin of 29.72% and a return on equity of 30.08%. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.08 EPS. On average, equities research analysts expect that Intel will post 4.5 EPS for the current year.
In other Intel news, Chairman Andy D. Bryant sold 11,734 shares of the business’s stock in a transaction on Tuesday, February 26th. The shares were sold at an average price of $53.03, for a total transaction of $622,254.02. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Navin Shenoy sold 14,493 shares of the business’s stock in a transaction on Tuesday, February 26th. The shares were sold at an average price of $53.03, for a total transaction of $768,563.79. The disclosure for this sale can be found here. Insiders have sold a total of 40,262 shares of company stock valued at $2,061,469 in the last 90 days. 0.03% of the stock is currently owned by company insiders.
A number of hedge funds have recently made changes to their positions in the business. Tributary Capital Management LLC bought a new stake in shares of Intel in the 4th quarter worth $28,000. Next Capital Management LLC bought a new stake in shares of Intel in the 4th quarter worth $46,000. Virtus ETF Advisers LLC bought a new stake in shares of Intel in the 4th quarter worth $48,000. Stevens First Principles Investment Advisors bought a new stake in shares of Intel in the 4th quarter worth $53,000. Finally, Tortoise Investment Management LLC grew its stake in shares of Intel by 86.7% in the 3rd quarter. Tortoise Investment Management LLC now owns 1,249 shares of the chip maker’s stock worth $59,000 after acquiring an additional 580 shares in the last quarter. Institutional investors and hedge funds own 63.78% of the company’s stock.
Intel Corporation offers computing, networking, data storage, and communication solutions worldwide. It operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. The company offers microprocessors, and system-on-chip and multichip packaging products.
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