TLDR
- Clifford Swan Investment Counsel increased Intel holdings by 1.9% in Q4
- CEO Michelle Johnston Holthaus received compensation package worth up to $24 million
- Analyst consensus on Intel stock remains largely “Hold” with a $26.88 price target
- Intel stock trading at $23.74, up 2.8% recently
- Ohio chip production facilities facing delays until 2030
Intel Corporation (NASDAQ:INTC) has seen notable changes in institutional holdings and leadership compensation against a backdrop of mixed analyst sentiment and production challenges. These developments come as the semiconductor giant navigates a complex competitive landscape while working to maintain its established position in the technology sector.
Clifford Swan Investment Counsel LLC has increased its stake in Intel, according to recent filings with the Securities and Exchange Commission. The investment firm lifted its position by 1.9% during the fourth quarter of the current fiscal year.
This move resulted in the addition of 15,214 shares to their holdings. Clifford Swan now owns a total of 819,532 shares of the chip maker’s stock.
Their investment was valued at approximately $16.4 million at the end of the most recent reporting period. This represents a vote of confidence in Intel during a challenging period for the company.
Other institutional investors have also adjusted their positions in Intel stock. Assenagon Asset Management S.A. substantially increased its stake by 264.0% in the fourth quarter.
This large move resulted in the acquisition of an additional 14,227,458 shares. Their total position now stands at 19,617,088 shares, valued at approximately $393.3 million.
UBS Asset Management Americas LLC also made a significant increase to its Intel holdings. The firm boosted its position by 28.2% during the third quarter.
Their additional investment of 12,865,308 shares brought their total holdings to 58,469,412 shares. This position was valued at approximately $1.37 billion at the time of reporting.
Van ECK Associates Corp similarly increased its stake in Intel by 27.2% in the third quarter. The firm added 9,422,136 shares to reach a total position of 44,013,936 shares.
The value of this holding was reported at approximately $967.4 million. These moves by institutional investors come during a period of mixed analyst ratings for Intel stock.
The company currently has a consensus rating of “Hold” from Wall Street analysts. The average price target stands at $26.88 per share based on analyst recommendations.
Several analysts have recently adjusted their ratings and price targets for Intel. Stifel Nicolaus reduced their price target from $25.00 to $21.00 while maintaining a “hold” rating on the stock.
UBS lowered their price target from $26.00 to $23.00, also keeping a “neutral” rating. Citigroup made a similar move, reducing their price objective from $22.00 to $21.00 with a “neutral” stance.
Bank of America has taken a more pessimistic view. The firm reissued an “underperform” rating with a price target of $21.00 on Intel stock.
Only one analyst has assigned it a “buy” rating
Among the 33 analysts covering Intel, five have issued “sell” ratings, 27 have given “hold” ratings, and only one has assigned a “buy” rating to the company’s stock. This cautious stance reflects ongoing challenges in Intel’s business.
Intel’s stock has been showing some recent momentum despite these cautious ratings. Shares traded up $0.65 during recent market activity, reaching $23.74.
This represented a 2.8% increase during the trading session. The company’s stock has experienced a 52-week range from a low of $18.51 to a high of $46.63.
The current market capitalization stands at approximately $102.8 billion. Intel’s stock metrics include a price-to-earnings ratio of -5.42 and a beta of 1.08.
In recent financial results, Intel released quarterly earnings on Thursday, January 30th. The chip maker reported earnings per share of -$0.02 for the quarter.
This figure fell short of analyst consensus estimates of $0.12 per share. The company posted a negative net margin of 35.32% and a negative return on equity of 3.27%.
Looking ahead, analysts forecast that Intel will post -$0.11 earnings per share for the current fiscal year. This projection reflects ongoing challenges in the company’s business operations.
In executive compensation news, Intel has entered into a new agreement with CEO Michelle Johnston Holthaus. The deal, effective from a recent filing date, significantly increases her pay package.
Johnston Holthaus, who was appointed as Chief Executive Officer of the Intel Products business in December 2024, will receive an annual salary of $1 million. Her compensation package includes potential for much more.
The agreement includes an annual cash bonus target opportunity of up to $2 million. This represents 200% of her base salary.
Additionally, her annual long-term incentive equity award target value has been set at approximately $16 million. She has also been granted a one-time award of restricted stock units valued at around $5 million.
The total potential compensation package could reach approximately $24 million annually. This move comes as Intel works to retain top executive talent in a competitive industry environment.
In manufacturing news, Intel’s planned $28 billion chip production facilities in Ohio are experiencing delays. The completion timeline has been pushed back to around 2030.
This adjustment aligns with market demand and capital management strategies according to statements from Intel’s general manager of Foundry Manufacturing. Production issues are also affecting Intel’s Panther Lake chips.
These processors are facing low yield rates that could impact mass production timelines in 2025. This information comes from TF International Securities analyst Ming-Chi Kuo.
Despite these challenges, Intel continues to develop new products. The company has expanded its Xeon 6 processor lineup with new CPUs designed for data center workloads.
These processors feature enhanced performance capabilities including improved AI processing and energy efficiency. The company has also introduced new Ethernet solutions to support business infrastructure needs.
Intel Corporation designs, develops, manufactures, and sells computing and related products worldwide. The company operates through multiple segments including Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services.
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