Intel’s (INTC) CEO Patrick Gelsinger is making the most of the current dip in the company’s stock price. As per a Form 4 filing, Gelsinger accumulated 14,800 shares of Intel at a weighted average purchase price of $33.8617 on August 24, valuing approximately $500,000. The shares were bought in multiple transactions with prices ranging between $33.80 to $33.90.
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Remarkably, INTC stock has been hovering around its 52-week low of $33.60 since August 24. This may have triggered Gelsinger to buy the stock. Notably, INTC stock has lost 32.7% so far this year amid the broader market sell-off.
Following the latest purchase, Gelsinger now owns 77,216 shares directly. In addition, he indirectly owns 266,530 shares of INTC stock through a trust.
As per TipRanks data, Gelsinger has been slowly adding INTC stock over the past couple of months through a series of both informative and uninformative Buy trades.
TipRanks’ Insider Trading Activity Tool also provides a comprehensive list of daily insider transactions and shows which top corporate insiders are buying or selling shares of a publicly listed company. Interestingly, TipRanks also includes a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
What is the Prediction for Intel Stock?
On TipRanks, INTC stock has a Hold consensus rating. This is based on five Buys, 16 Holds, and nine Sells. The average Intel stock prediction of $40.50 implies 16.1% upside potential to current levels.
Are Intel Shares a Good Buy?
Intel has recently signed a $30 billion deal with Brookfield Asset Management (BAM) to expand its chip manufacturing facility in Arizona. This will solve most of Intel’s chip-related problems in the long run. Plus, the passing of the CHIPS Act will be beneficial for the industry as a whole.
However, in the short term, a difficult macroeconomic backdrop, dimming demand for personal computers, supply chain bottlenecks, and the company’s internal issues are dragging down the company’s performance.
Intel missed both revenue and earnings expectations for the second quarter. Also, its guidance for Q3 fell short of analysts’ estimates. All these factors have made the analysts’ confidence shaky, and they prefer waiting on the sidelines until more clarity is sought.
