Intel Corporation (NASDAQ: INTC) is witnessing increased institutional interest, with firms like Xponance Inc. boosting their holdings in the tech giant. Despite Wall Street analysts’ mixed ratings, institutional investors are betting on Intel’s long-term potential amid its AI-centric turnaround strategy.
Institutional Investors Increase Stakes in Intel
In its latest filing with the Securities and Exchange Commission (SEC), Xponance Inc. disclosed a 5.2% increase in its Intel holdings during the fourth quarter. The firm purchased an additional 32,491 shares, bringing its total stake to 662,665 shares valued at approximately $13.3 million.
Other institutional investors have also been actively adding to their Intel positions:
- Geode Capital Management LLC raised its stake by 4.6% during the third quarter, now owning 92.5 million shares worth $2.16 billion.
- Relyea Zuckerberg Hanson LLC increased its holdings by a staggering 211.6% in Q4, adding 19,625 shares for a total of 28,898 shares valued at $579,000.
- Principal Financial Group Inc. boosted its Intel position by 4.4%, adding 204,200 shares for a total holding of 4.82 million shares valued at $113.2 million.
- Empirical Asset Management LLC and InvesTrust initiated new Intel positions valued at $276,000 and $3.7 million, respectively.
Overall, institutional investors now own 64.53% of Intel’s stock, signaling confidence in the company’s long-term prospects despite recent price volatility.
Intel Stock Performance and Valuation
Intel’s shares opened at $25.92 on Wednesday, reflecting a market capitalization of $112.23 billion. The stock’s key financial metrics include:
- Debt-to-equity ratio: 0.44, indicating manageable leverage.
- Quick ratio: 0.98, reflecting sufficient liquidity.
- Current ratio: 1.33, showcasing stable financial health.
- 52-week range: $18.51 (low) to $45.41 (high).
- P/E ratio: -5.92, indicating recent unprofitability.
- Beta: 1.02, suggesting moderate volatility.
The stock has a 50-day moving average of $21.68 and a 200-day moving average of $21.93, indicating that Intel is trading above its recent trends, signaling potential momentum.
Recent Earnings and Wall Street Sentiment
Intel’s latest earnings report, released on January 30, revealed disappointing results. The company posted a $0.02 per share loss, missing analyst estimates of $0.12 by $0.14. Intel’s negative net margin of 35.32% and negative return on equity of 3.27% reflect ongoing profitability challenges.
Despite the underwhelming performance, analysts predict Intel will post a smaller loss of $0.11 per share for the current fiscal year, indicating expectations of gradual improvement.
Analyst Ratings: Mixed Sentiment Persists
Wall Street analysts remain cautious on Intel, with most maintaining neutral or hold ratings:
- Roth Mkm lowered its price target from $25 to $20, rating Intel as neutral.
- Mizuho cut its target from $23 to $21, also assigning a neutral rating.
- Stifel Nicolaus dropped its price target from $25 to $21, issuing a hold rating.
- Barclays reduced its target from $25 to $23, keeping an equal weight rating.
- Cantor Fitzgerald, however, raised its target from $22 to $29, giving Intel a neutral rating.
According to MarketBeat.com, Intel currently holds a consensus rating of “Hold” with an average price target of $27.04.
Intel’s Road Ahead: Balancing Institutional Confidence with Market Challenges
Despite Wall Street’s cautious outlook, the increasing institutional ownership reflects confidence in Intel’s AI-powered turnaround. With Lip-Bu Tan leading Intel’s restructuring efforts, the company’s focus on AI hardware, foundry services, and operational efficiency could pave the way for a potential recovery in the tech giant’s valuation.
