Intel (NASDAQ:INTC) Cut to “Underperform” at Bank of America

Bank of America cut shares of Intel (NASDAQ:INTC) from a neutral rating to an underperform rating in a report released on Friday morning, Marketbeat Ratings reports. They currently have $23.00 price objective on the chip maker’s stock, down from their prior price objective of $35.00.

Other equities research analysts have also issued research reports about the stock. StockNews.com raised shares of Intel from a sell rating to a hold rating in a report on Thursday, August 1st. Wedbush cut their price target on shares of Intel from $40.00 to $32.50 and set a neutral rating for the company in a report on Friday, April 26th. Wolfe Research raised shares of Intel from an underperform rating to a peer perform rating in a report on Thursday, May 16th. Susquehanna cut their price target on shares of Intel from $40.00 to $35.00 and set a neutral rating for the company in a report on Friday, April 26th. Finally, Wells Fargo & Company dropped their target price on shares of Intel from $43.00 to $38.00 and set an equal weight rating for the company in a report on Friday, April 26th. Five investment analysts have rated the stock with a sell rating, twenty-three have assigned a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of Hold and an average price target of $32.92.

Intel Stock Performance

Shares of INTC traded down $0.28 during trading hours on Friday, hitting $19.83. The stock had a trading volume of 102,369,355 shares, compared to its average volume of 50,954,605. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.14 and a current ratio of 1.57. The firm has a 50-day moving average price of $31.14 and a 200 day moving average price of $36.52. Intel has a fifty-two week low of $19.29 and a fifty-two week high of $51.28. The firm has a market capitalization of $84.42 billion, a price-to-earnings ratio of 20.76, a PEG ratio of 17.38 and a beta of 1.05.

Intel (NASDAQ:INTC) last posted its earnings results on Thursday, August 1st. The chip maker reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.08). Intel had a net margin of 1.77% and a return on equity of 1.82%. The firm had revenue of $12.80 billion during the quarter, compared to analyst estimates of $12.92 billion. During the same quarter in the prior year, the firm earned ($0.05) earnings per share. The business’s revenue for the quarter was down .8% on a year-over-year basis. As a group, research analysts anticipate that Intel will post 0.07 EPS for the current year.

Intel Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Sunday, September 1st. Stockholders of record on Wednesday, August 7th will be paid a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a dividend yield of 2.52%. The ex-dividend date is Wednesday, August 7th. Intel’s dividend payout ratio (DPR) is currently 52.08%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Norges Bank purchased a new position in shares of Intel in the fourth quarter worth approximately $2,424,202,000. Price T Rowe Associates Inc. MD raised its position in shares of Intel by 543.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 37,384,507 shares of the chip maker’s stock valued at $1,878,572,000 after purchasing an additional 31,575,084 shares during the period. Capital International Investors raised its position in shares of Intel by 16.0% in the first quarter. Capital International Investors now owns 112,093,582 shares of the chip maker’s stock valued at $4,951,174,000 after purchasing an additional 15,475,631 shares during the period. Van ECK Associates Corp raised its position in shares of Intel by 60.5% in the second quarter. Van ECK Associates Corp now owns 34,591,800 shares of the chip maker’s stock valued at $1,071,308,000 after purchasing an additional 13,035,566 shares during the period. Finally, California Public Employees Retirement System raised its position in shares of Intel by 102.6% in the fourth quarter. California Public Employees Retirement System now owns 16,074,760 shares of the chip maker’s stock valued at $807,757,000 after purchasing an additional 8,140,835 shares during the period. 64.53% of the stock is owned by institutional investors and hedge funds.

About Intel

Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services segments. The company's products portfolio comprises central processing units and chipsets, system-on-chips (SoCs), and multichip packages; mobile and desktop processors; hardware products comprising graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products.