Intel (INTC) Faces Institutional Shifts and Analyst Downgrades: What’s Next for the Chip Giant?

Intel Corporation (NASDAQ: INTC) is witnessing significant movements in institutional investments, with Isthmus Partners LLC reducing its stake by 38.4% during the fourth quarter. According to its latest 13F filing with the SEC, Isthmus Partners now holds 123,746 shares of Intel, down by 77,019 shares, valued at $2.48 million.

Institutional Investors Reshuffling Their Intel Holdings

The shifting sentiment is not limited to Isthmus Partners. Several major investment firms have adjusted their Intel holdings:

• Assenagon Asset Management S.A. increased its stake by 264%, now holding 19.6 million shares worth $393.32 million.
• UBS Asset Management Americas LLC raised its position by 28.2%, bringing its total to 58.47 million shares valued at $1.37 billion.
• Jacobs Levy Equity Management Inc. increased its holdings by 224.8%, now owning 10.41 million shares worth $244.3 million.
• State Street Corp raised its stake by 2.8%, reaching 197.96 million shares valued at $4.64 billion.
• Geode Capital Management LLC expanded its stake by 4.6%, now holding 92.51 million shares valued at $2.16 billion.

Institutional investors now own 64.53% of Intel’s stock, underscoring significant interest in the company despite mixed analyst ratings.

Analyst Downgrades and Revised Price Targets

Intel has been under intense scrutiny from Wall Street analysts, with a string of downward revisions:

• Wells Fargo & Company cut its price target from $28 to $25, maintaining an “equal weight” rating.
• Stifel Nicolaus lowered its target from $25 to $21, maintaining a “hold” rating.
• Bank of America reiterated an “underperform” rating with a $21 target price.
• UBS Group reduced its price target from $26 to $23, giving a “neutral” rating.
• Cantor Fitzgerald was the lone optimistic voice, raising its price target from $22 to $29, assigning a “neutral” rating.

Overall, five analysts have issued a “sell” rating, 27 recommend “hold,” and only one suggests a “buy.” MarketBeat data shows an average target price of $26.88.

Stock Performance and Financial Indicators

Intel’s stock opened at $20.64 on Monday, marking a challenging period for the chip giant. The stock’s 52-week range spans from $18.51 to $46.63. Key financial metrics include:

• Quick Ratio: 0.98
• Current Ratio: 1.33
• Debt-to-Equity Ratio: 0.44
• Market Cap: $89.37 billion
• PE Ratio: -4.71
• Beta: 1.02

Intel’s Latest Earnings Report

In its latest earnings release on January 30th, Intel reported an EPS of -$0.02, missing analyst estimates of $0.12 by $0.14. The company reported a negative net margin of 35.32% and a negative return on equity of 3.27%. Analysts predict a full-year EPS of -$0.11.

What’s Next for Intel?

With its 18A process technology in focus and the company aiming for a resurgence in the foundry business, Intel’s near-term outlook remains uncertain. Will upcoming strategic shifts, including potential M&A activity, be enough to drive a turnaround? Investors are closely watching as the semiconductor landscape continues to evolve.