Insider Trading Report: Intel (INTC)

Patrick Gelsinger, CEO at Intel (INTC), recently picked up 10,000 shares of the company. The buy increased his stake by nearly 21 percent, and came to a total purchase price of just over $995,000.

  • Special: This Company’s Share Price has Increased 1650% Since 2016
  • He was joined by a number of company directors, one of whom picked up 20,000 shares totaling just under $2 million. The smallest director buy in this latest cluster was for 5,000 shares, coming in at just under $250,000.

    This is a solid show of strength from company management following the stock’s recent dive since its last earnings report. However, company insiders still own a mere 0.07 percent of company shares.

    Suffering from delays thanks to the chip shortage, Intel is now up less than 10 percent over the past year, significantly underperforming the S&P 500. Even with the recent disappointing quarters, earnings are up nearly 60 percent in the past year, and the company trades at 11 times forward earnings.

    Action to take: Investors may like shares under $50 as an accumulation trade. The stock yields 2.8 percent here, and the dividend has had some small increases over the years. A rebound in shares on top of that could lead to solid returns in the months ahead.

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  • For traders, the latest insider buy may not quite signal an end to the selling yet, but that it’s close. Once shares start heading higher, a trade like the March $55 calls could fare well. That option last went for $0.97, and on a move higher in shares could deliver high double-digit returns, or even head into triple-digit territory.

     

    Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.