Intel (NASDAQ:INTC) Shares Rise 4.8% - What's Next?

Recently, Intel Co. (NASDAQ:INTC - Get Free Report) saw its stock price increase by 4.8% during mid-day trading on Wednesday. The stock peaked at $24.87 before settling at $24.43. In total, about 43,818,277 shares were traded, which is a 26% decrease from the average daily trading volume of 59,431,574 shares. The previous closing price for the stock was $23.32.

Analyst Ratings Update

Various research analysts have been weighing in on Intel's stock performance. Notably, Wedbush reduced their price target from $32.50 to $25.00 while maintaining a "neutral" rating as of August 2nd. Similarly, Daiwa America upgraded Intel to a "hold" rating on August 26th, while New Street Research downgraded its rating from "buy" to "neutral" on the same date. Additionally, UBS Group adjusted their price target from $37.00 to $32.00, also assigning a "neutral" rating. Finally, Hsbc Global Research downgraded Intel from a "hold" to a "moderate sell" rating. Currently, six analysts rate the stock as a sell, twenty-five have rated it as a hold, and one analyst recommends it as a buy. According to MarketBeat data, the consensus rating is "Hold" with a price target average of $30.12.

Recent Performance

Initially, Intel's stock was trading up by 7.4%. The company’s financial health shows a debt-to-equity ratio of 0.44, a quick ratio of 0.97, and a current ratio of 1.31. The 50-day moving average is $22.01, while the 200-day moving average stands at $26.72.

On October 31st, Intel released its quarterly earnings, revealing an earnings per share (EPS) of ($0.46), which fell short of the anticipated ($0.02) by a significant margin of ($0.44). The company reported revenues of $13.30 billion, surpassing analyst estimates of $13.02 billion. However, its return on equity was negative at 1.71%, with a net margin of 29.42% indicating ongoing difficulties. Year-over-year, Intel's revenue declined by 6.3%, contrasting with the previous year when it reported an EPS of $0.28. Analysts anticipate Intel will post an EPS of -0.47 for the current year.

Institutional Investors and Hedge Funds

Recent shifts in holdings by hedge funds reflect a growing interest in Intel. For instance, America First Investment Advisors LLC bought a new stake valued at around $25,000 during the second quarter. Other funds, including Cyrus J. Lawrence LLC and Spartan Fund Management Inc., also made new acquisitions in the same period, ranging from approximately $27,000 to $31,000. Collectively, institutional investors now own 64.53% of the stock.

About Intel

Intel Corporation specializes in designing, manufacturing, and marketing computing products across various segments including Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services. Their product lineup includes central processing units (CPUs), chipsets, mobile and desktop processors, graphics processing units (GPUs), and hardware products among others.

Investment Considerations

Given the current market conditions and recent analyst ratings, investors may be questioning whether this is the right time to buy Intel shares. While Intel currently has a "Reduce" rating among analysts, some investors may want to explore other stock opportunities suggested by top analysts. It’s advisable to do thorough research before making investment decisions.

Intel, Stocks, Market