One of Intel’s (NASDAQ:INTC) directors, Lip-Bu Tan, recently bought 66,000 shares of the company at a weighted average price of $37.84 for a total value of $2.5 million. INTC is a leading semiconductor company that specializes in computer and data-related technologies.
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The insider’s purchase comes following rumors that INTC secured roughly $3 to $4 billion in funding under the CHIPS Act program. The company is expected to use these funds to build large chip manufacturing facilities for the U.S. defense and intelligence departments. The Act was passed last year by the Biden Administration, allocating $53 billion to the semiconductor industry.
It is worth mentioning that Tan is not the only insider purchasing the company’s stock. On November 3, CEO Patrick Gelsinger disclosed the purchase of 6,775 shares at $36.80 per share, for a total transaction amount of $249,333.
Given the positive outlook of the insiders, some potential favorable developments can be expected. In general, investors may find it valuable to monitor transactions by key insiders, as these transactions often mirror their confidence in the company’s future performance.
Bullish Insider Trading Signal
Overall, TipRanks’ Insider Trading Activity tool shows that the Insider Confidence Signal is currently Positive on INTC. Corporate insiders have bought INTC stock worth $2.7 million in the last three months.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is Intel a Buy, Sell, or Hold?
Yesterday, Citi analyst Christopher Danely reiterated a Hold rating on INTC with a price target of $34 (13.7% downside potential). The analyst remains sidelined due to the underperformance of October notebook shipments and a sluggish demand recovery.
Overall, on TipRanks, Intel has a Hold consensus rating based on four Buys, 19 Holds, and four Sell ratings. The average Intel price target of $36.87 implies 6.5% downside potential from current levels. Meanwhile, INTC stock has gained 50.9% so far this year.
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