Zacks Investment Research Upgrades Intel (INTC) to Buy

Intel (NASDAQ:INTC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The brokerage presently has a $53.00 target price on the chip maker’s stock. Zacks Investment Research‘s target price points to a potential upside of 15.52% from the company’s previous close.

According to Zacks, “Intel is benefiting from robust performance of the Data Center Group, Internet-of-Things Group, Non-Volatile Memory Solutions and Programmable Solutions Group. These segments form the crux of Intel’s data-centric business model. The company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is bearing fruit. Further, expanding customer base in the PSG segment drove top-line growth. Moreover, stable PC market is also positive for the company. Additionally, lower spending helped in expanding operating margins. Intel raised 2018 guidance based on these solid growth trends. However, delay in transition to 10-nm process is a concern. Moreover, intensifying competition remains a headwind. We note that Intel has underperformed the industry over the past one year.”

Other research analysts have also issued research reports about the stock. Wells Fargo & Co reiterated a “buy” rating and issued a $65.00 price objective on shares of Intel in a research note on Thursday, June 21st. BidaskClub lowered shares of Intel from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, June 12th. Needham & Company LLC dropped their price objective on shares of Intel from $62.00 to $60.00 and set a “buy” rating on the stock in a research note on Friday, June 22nd. Robert W. Baird set a $64.00 price objective on shares of Intel and gave the company a “buy” rating in a research note on Thursday, July 12th. Finally, B. Riley dropped their price objective on shares of Intel from $65.00 to $63.00 and set a “buy” rating on the stock in a research note on Friday, July 27th. Five research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and twenty-one have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $55.29.

Intel stock opened at $45.88 on Wednesday. The company has a market capitalization of $214.78 billion, a price-to-earnings ratio of 13.26, a P/E/G ratio of 1.31 and a beta of 0.97. The company has a current ratio of 1.57, a quick ratio of 1.15 and a debt-to-equity ratio of 0.35. Intel has a twelve month low of $37.29 and a twelve month high of $57.60.

Intel (NASDAQ:INTC) last released its quarterly earnings data on Thursday, July 26th. The chip maker reported $1.04 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.99 by $0.05. The firm had revenue of $16.96 billion for the quarter, compared to analyst estimates of $16.78 billion. Intel had a net margin of 20.07% and a return on equity of 27.33%. The company’s revenue for the quarter was up 14.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.72 EPS. equities research analysts forecast that Intel will post 4.15 earnings per share for the current year.

In other news, CEO Robert Holmes Swan acquired 5,243 shares of the firm’s stock in a transaction that occurred on Monday, July 30th. The stock was acquired at an average cost of $47.69 per share, with a total value of $250,038.67. Following the acquisition, the chief executive officer now owns 71,672 shares in the company, valued at $3,418,037.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Navin Shenoy sold 601 shares of the company’s stock in a transaction on Monday, July 30th. The stock was sold at an average price of $47.69, for a total transaction of $28,661.69. Following the sale, the executive vice president now directly owns 40,903 shares of the company’s stock, valued at $1,950,664.07. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 4,077 shares of company stock valued at $205,757. 0.03% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of INTC. TIAA CREF Investment Management LLC boosted its holdings in shares of Intel by 47.8% during the 4th quarter. TIAA CREF Investment Management LLC now owns 23,711,209 shares of the chip maker’s stock worth $1,094,509,000 after buying an additional 7,669,737 shares during the period. Charles Schwab Investment Advisory Inc. bought a new stake in shares of Intel during the 2nd quarter worth $204,242,000. Renaissance Technologies LLC boosted its holdings in shares of Intel by 3,222.2% during the 4th quarter. Renaissance Technologies LLC now owns 3,441,594 shares of the chip maker’s stock worth $158,864,000 after buying an additional 3,338,000 shares during the period. Platinum Investment Management Ltd. boosted its holdings in shares of Intel by 192.0% during the 1st quarter. Platinum Investment Management Ltd. now owns 4,712,431 shares of the chip maker’s stock worth $245,423,000 after buying an additional 3,098,600 shares during the period. Finally, Alliancebernstein L.P. boosted its holdings in shares of Intel by 14.7% during the 4th quarter. Alliancebernstein L.P. now owns 24,187,824 shares of the chip maker’s stock worth $1,116,510,000 after buying an additional 3,095,697 shares during the period. 65.33% of the stock is owned by institutional investors and hedge funds.

About Intel

Intel Corporation designs, manufactures, and sells computer, networking, data storage, and communication platforms worldwide. The company operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments.

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