TLDR
- Intel stock opened at $120.35 Monday, leading a chip-sector rebound after two straight weeks of losses for the SOX index.
- IT sector earnings estimates have risen 10% since Q2 began; Intel and Sandisk lead the pack.
- Analysts now expect Intel to report Q2 EPS of $0.21, up from $0.08 on March 31.
- Multiple institutions added to Intel positions in Q2, with 64.53% of the stock held by hedge funds and institutions.
- Goldman Sachs initiated coverage with a “neutral” rating and $150 target; HSBC holds a Buy with a $200 target.
Intel stock opened at $120.35 on Monday morning as chip stocks bounced back after two consecutive weeks of losses for the PHLX Semiconductor Index (SOX).
Sandisk (SNDK) and Western Digital (WDC) were also up around 4% after taking heavy losses the previous Thursday.
The rebound came as investors turned their attention to the upcoming earnings season, where expectations for the tech sector have been building.
Earnings estimates for the information technology sector have climbed 10% since the second quarter began on April 1, according to FactSet data. That puts IT second only to the energy sector, which has seen a 50% jump in estimates over the same period.
Intel and Sandisk are leading the tech sector in percentage gains in earnings-per-share estimates since March 31. Sandisk also ranks near the top on a dollar basis, alongside Micron (MU), Nvidia (NVDA), and Apple.
For Intel specifically, analysts now expect Q2 EPS of $0.21, up sharply from the $0.08 estimate at the start of the quarter. Intel’s own Q2 guidance is set at $0.20 EPS.
Institutions Keep Buying
Several institutional investors added to their Intel positions in Q2. Walkner Condon Financial Advisors took a new stake worth roughly $224,000, buying 5,068 shares. Sivia Capital Partners grew its Intel holding by 271.7%, now owning 34,201 shares worth $766,000. NewEdge Advisors lifted its position by 29.6% to 158,277 shares.
Overall, 64.53% of Intel stock is held by hedge funds and institutional investors.
On the insider side, EVP April Miller sold 40,256 shares on May 1 at an average of $99.53 each, totaling just over $4 million. That reduced her ownership stake by 27.7%.
Analyst Targets Vary Widely
Analyst price targets on Intel are spread across a wide range. HSBC raised its target to $200 with a Buy rating, pointing to progress in Intel’s foundry business and potential partnerships with Apple, Nvidia, and Amazon.
Goldman Sachs started coverage on June 25 with a “neutral” rating and a $150 target. Mizuho set a $135 target on June 21. TD Cowen rates the stock a Hold with a $75 target. Rosenblatt has a Sell rating and a $50 target.
The consensus across 49 analysts sits at “Hold” with a price target of $96.69.
Intel’s most recent earnings report, released April 23, showed Q1 EPS of $0.29, beating the $0.01 consensus by $0.28. Revenue came in at $13.58 billion, above the $12.32 billion estimate and up 7.4% year over year.
The stock’s 12-month range is $18.97 to $142.35. Its 200-day moving average sits at $71.20, well below the current price. Intel carries a market cap of $604.88 billion and a beta of 2.18.
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