Intel CEO Makes An Unexpected Insider Sale

Intel LogoBy The original uploader was VD64992 at English Wikipedia [Public domain], via Wikimedia Commons

Intel CEO Brian Krzanich made an unexpected insider sale on Nov. 2, according to a SEC filing on Nov. 04. Krzanich sold 35,000 shares at an average price of $34 each. The total value of the transactions was $1.2 million.

Big selling from Intel CEO

In the last 30 days, Krzanich also sold 35,000 shares valued at $1.06 million. This is major insider selling, especially from the CEO. These sales have lowered Krzanich’s stake in Intel to 0.01% of the chip maker’s total market capitalization.

Intel also disclosed other insider buying and selling activities. Renee James sold 3,602 shares at an average price of $34.76 on Oct. 26 in a transaction worth $125,206, according to the Form 4 filing. Other insider selling since April 21 includes a sale of 1,506 shares worth $51,472 by Gregory Pearson and 23,000 shares worth $772,968 by Andy Bryant. Another insider, William Holt, sold 6,786 shares worth $192,020. It must be noted that there has been no insider buying during the same period.

Presently, insiders own 0.09% of Intel shares, while institutional investors own 64.98%, according to proxy statements.

Analysts consider Intel a Hold

Many analysts have released their verdicts on the chip maker in recent months. UBS analysts maintained its Buy rating on the stock in a report on Oct. 30. In an Oct. 14 report, Macquarie Research maintained its Neutral rating on the stock with a price target of $32. Pacific Crest maintained its Overweight rating on the chip maker with a price target of $37 in a report on Oct. 14. Cowen & Co., in a report on Oct. 22, maintained its Market Perform rating on Intel. In a report on Oct. 22, FBR Capital maintained its Market Perform rating on the chip maker.

For the quarter closed on Sept. 30, Intel posted EPS of 64 cents on revenue of $14.47 billion. On average, analysts had expected the chip maker to post earnings of 59 cents a share on $14.22 billion in revenue.

“We executed well in the third quarter and delivered solid results in a challenging economic environment,” Krzanich said in a press release.

Presently, Intel has an average rating of Hold and an average price target of $35.64. On Wednesday, Intel shares closed up 0.23% at $34.15. Year to date, the stock is down by almost 6% while in the last one month, it is up by almost 12%.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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