Intel Corporation (NASDAQ: INTC) shares have faced selling pressure as Baxter Bros Inc. reduced its stake by 39.5% during the fourth quarter, according to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC). The institutional investor sold 48,908 shares, leaving it with 74,982 shares valued at $1.5 million.
💰 Institutional Investors Trimming Exposure
Baxter Bros Inc. isn’t alone—several other institutional investors and hedge funds have recently made adjustments:
- Quest Partners LLC boosted its Intel holdings by 7,370% in Q3 but only holds 1,270 shares worth $30,000, indicating a relatively small position.
- Finley Financial LLC, Synergy Investment Management LLC, BankPlus Trust Department, and Keystone Financial Group Inc. all initiated small positions, each worth around $25,000 – $29,000, suggesting some opportunistic bottom-fishing.
- Overall, 64.53% of Intel’s stock is held by hedge funds and institutional investors, reflecting widespread interest but also recent caution.
🔥 Mixed Analyst Ratings and Price Targets
Intel has drawn mixed ratings from Wall Street analysts, reflecting uncertainty around its turnaround efforts and future growth prospects:
- Wells Fargo & Company cut its price target from $28 to $25 and maintained an “equal weight” rating.
- Benchmark reiterated a “hold” rating, expressing neutrality.
- Bank of America upgraded Intel from “underperform” to “neutral”, raising its target from $19 to $25, signaling tempered optimism.
- Cantor Fitzgerald increased its price target from $22 to $29, while maintaining a “neutral” stance.
- Citigroup, however, decreased its target from $22 to $21, keeping a “neutral” outlook.
Overall Rating:
- 4 Sell ratings
- 28 Hold ratings
- 1 Buy rating
- Consensus price target: $27.04, implying limited upside from current levels.
📊 Intel’s Financial Performance and Outlook
Intel’s latest earnings report (January 30, 2025) disappointed investors:
- EPS: ($0.02), missing estimates of $0.12 by $0.14.
- Revenue: Below consensus forecasts.
- Net Margin: -35.32%, reflecting deep unprofitability.
- Return on Equity: -3.27%, indicating declining shareholder value.
Despite ongoing restructuring efforts, Intel is projected to post a full-year EPS of -0.11, highlighting continued struggles.
📉 Stock Performance and Valuation
Intel’s stock price opened at $24.22 on Tuesday, with the following technicals:
- 12-Month Range: $18.51 – $45.41
- 50-Day Moving Average: $22.05
- 200-Day Moving Average: $22.04
- Market Cap: $104.87 billion
- P/E Ratio: -5.53, reflecting current unprofitability
- Beta: 1.02, indicating moderate volatility
⚠️ Key Takeaway: Caution Ahead for Intel
While institutional investors continue to hold a significant stake in Intel, the recent sell-off by Baxter Bros Inc. and cautious analyst ratings suggest market skepticism regarding the company’s turnaround efforts.
- Challenges: Intel faces fierce competition from rivals like AMD and Taiwan Semiconductor while navigating leadership changes and operational headwinds.
- Valuation Concerns: With a negative P/E ratio and deteriorating margins, Intel’s fundamentals remain weak.
💡 Investor Outlook:
Given the mixed analyst sentiment, institutional sell-offs, and Intel’s profitability struggles, investors may want to exercise caution or adopt a wait-and-see approach until Intel demonstrates tangible progress in restructuring efforts and market share recovery.
