Intel Corporation (NASDAQ: INTC) saw its stock price drop 6.9%, closing at $24.12 on Thursday. Despite the broader market rally, Intel’s underperformance highlights the ongoing investor skepticism around the chipmaker’s future, particularly after several large investors reduced their holdings.
Maryland State Retirement & Pension System Lowers Intel Holdings
The Maryland State Retirement & Pension System trimmed its position in Intel by 6.5% during the fourth quarter, according to its recent 13F filing with the Securities and Exchange Commission (SEC). The pension system sold 15,735 shares, bringing its total holdings to 228,216 shares, valued at $4.58 million.
Institutional Investors Adjust Their Intel Stakes
Several other large investors also modified their positions:
- Dunhill Financial LLC increased its stake by 22.6% during the third quarter, now holding 2,380 shares worth $56,000.
- CFM Wealth Partners LLC boosted its position by 4%, raising its stake to 13,114 shares valued at $263,000.
- Wealth Quarterback LLC raised its holdings by 2%, owning 25,458 shares worth $510,000.
- Missouri Trust & Investment Co. increased its Intel stake by 3.6% to 15,650 shares, valued at $314,000.
- Riverview Trust Co. expanded its position by 2%, now holding 28,567 shares valued at $573,000.
Currently, 64.53% of Intel’s shares are owned by institutional investors.
Wall Street Analysts Offer Mixed Ratings
Intel received divergent ratings from research firms:
- Roth Mkm downgraded its price target from $25.00 to $20.00, assigning a “neutral” rating.
- Truist Financial lowered its price objective from $22.00 to $21.00, also issuing a “hold” rating.
- Barclays cut its target price from $25.00 to $23.00 with an “equal weight” rating.
- HSBC upgraded Intel from “reduce” to “hold”.
- Overall, Intel has a “Hold” consensus rating from 33 analysts, including 28 hold ratings, 4 sell ratings, and 1 buy rating, with an average price target of $27.04.
Intel’s Financials and Market Performance
Intel’s stock currently trades near its 52-week low of $18.51, significantly below its 52-week high of $45.41. The company has a market capitalization of $104.44 billion, a PE ratio of -5.51, and a beta of 1.02.
In its most recent earnings report on January 30th, Intel posted a loss of $0.02 per share, missing the consensus estimate of $0.12 EPS by $0.14. The company reported a negative net margin of 35.32% and a return on equity of -3.27%, reinforcing concerns over its profitability.
Chipmaker Competition and Industry Outlook
Intel continues to face stiff competition from Taiwan Semiconductor Manufacturing Company (TSMC) and Nvidia (NASDAQ: NVDA). TSMC’s expansion into U.S. chip manufacturing could significantly alter the competitive landscape, potentially impacting Intel’s foundry ambitions.
Despite the recent pullback, institutional interest in Intel stock remains strong, with long-term investors likely keeping a close eye on the company’s AI and foundry initiatives.
