Intel Faces Stock Pressure Amid 14th Gen CPU Issues

Tuesday’s mid-day stock trade brought even more losses to an already struggling Intel Co. (NASDAQ: INTC). The stock’s price fell 0.4% to $33.95. Finally, Intel ended the session at $34.31, slightly increasing from the day’s average. Active users blame 14th gen Intel processor’s faulty performance.

Share trading volume experienced a tremendous decline of 81%, dropping from an average of 46,996,898 to 8,829,089 per session. There has been a tendency of overall dissatisfaction with Intel’s latest CPU. Therefore, loyal investors are hoping that the release of the 15th Generation Intel Core processors will bring some prosperity to the stock.

14th Gen: A Promising Beginning – Dissapointing End

In October of last year, the tech giant introduced the newest flagship model, Intel® CoreTM i9-14900K. The company officially presented the upgraded family of the 14th Generation on the 17th of October 2023. Intel claimed that this model was the fastest desktop central processing unit in human history. They promised an outstanding edge performance for gamers, among other multi-threaded program enhancements. 

However, things went downhill quite rapidly after the official launch. Starting in April, users began reporting multiple cases of sudden game crashes. Additionally, some claimed that Intel 14th Gen CPUs are corrupting memory and storage, affecting not only gamers but also data center companies around the world.

Investors Release Price Predictions

Leading investing institutions, along with investment research agency Rosenblatt Securities, have determined a future trajectory for Intel Core. According to recent market benchmarks, the Intel share price prediction stands at $62.00 per ‘buy’ rate. On the other hand, the ‘sell’ rate target is $17.00 per share.

Moreover, International Bank Morgan Stanley has dropped Intel’s target price, going down from $48.00 to $36.00, according to Friday’s research report.

Simultaneously, Mizuho Financial Group decreased their price target to $45.00 from $55.00. Susquehanna International, a global trading firm, joined the narrative. The platform went from $40.00 to $35.00, referring to Intel’s current rate as ‘neutral’, respectively.

Finally, twenty-three research analysts have given the stock a ‘hold’ rating. Besides, five have moved toward a ‘buy’ trajectory, while three granted the stock a ‘sell’ rating.

As per the data available on MarketBeat, the stock currently possesses an average target price of $39.25. Besides, the stock’s rating stands at “Hold”.

Stock Performance: Intel Share Price Today

The company’s current ratio stands at 1.57 points, while its debt-to-equity ratio comes down to 0.43 points.

With a price-to-earnings ratio of 35.29, Intel’s market cap is $146.19 billion at the moment of writing. Analysts determined the company’s 50-day simple moving average of $31.23, considering a 1.05 beta indicator. With that in mind, the 200-day simple moving average equals $38.32 apiece.

Intel’s latest release of its quarterly earnings was the 25th of April. Back then, the company’s earnings data was an equivalent of $0.06 EPS with a $0.03 consensus estimate.

Intel’s return on equity was 2.19%, with a net margin of 7.36%. In contrast to experts’ forecasts of $12.76 billion, the company’s revenue for the quarter was $12.72 billion. For the current fiscal year, equities research analysts expect Intel Co. to report average earnings per share of 0.09.

Intel Market Share Dividend Proclamation

Additionally, on the 1st of June the business just announced the payment of a quarterly dividend. Before that, on the 7th of May, investors who were on file received a $0.125 dividend. 

The date of the ex-dividend was Monday, the 6th of May. This translates to an annualised $0.50 dividend and a 1.46% dividend yield. 52.08% is Intel’s dividend payout ratio (DPR).

In related news, on Wednesday, the 1st of May, CEO Patrick P. Gelsinger purchased 4,100 shares of the company’s stock. The final deal price came down to a total of $124,189.00 or an average price of $30.29 per share. The chief executive officer now possesses 39,375 shares in the business at a price of $1,192,668.75.

Furthermore, CEO Patrick P. Gelsinger has also purchased 4,000 shares of the Intel 14th gen technology stock. With a total purchase price of $125,680.00, the stock was anchored at a price of $31.42 per share. 

Currently, the executive officer retains 35,275 shares of the company’s stock, standing at $1,108,340.50. After securing the deal, 0.04% of the stock is owned by company insiders.

Institutional Pressure: Heft Load on Intel

Recently, hedge funds have been actively buying and selling Intel’s shares. At the same time, during the 4th quarter, Slow Capital Inc. expanded the Intel stakes by 0.9%. Now, the company possesses the amount of 54,708 shares of the stock. 

Slow Capital Inc. bought an extra 508 shares of the chip maker’s stock in the most recent quarter, bringing its total ownership of the shares to $2,749,000. During the fourth quarter, Altus Wealth Group LLC increased its stake in Intel by 29.4%.

Moreover, in the fourth quarter, Alera Investment Advisors LLC acquired a new position in Intel worth approximately $201,000. Additionally, in the first quarter, Brookstone Capital Management increased its stake in Intel by 65.2%.

After purchasing an additional 27,274 shares of the chip maker’s stock during the most recent quarter, Brookstone Capital Management now owns 69,096 shares of the company for $3,052,000. Hedge funds and institutional investors hold 64.53% of the company’s equity.

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