Intel insider bought shares for the first time since 2024. Should we follow his lead?
Intel's CFO bought shares after the collapse, "supporting" the market / Photo: JHVEPhoto / Shutterstock
Intel CFO David Zinsner bought a stake in the company amid a sharp decline in quotes after the publication of reports, betting on the temporary nature of the fall, writes MarketWatch, citing documents filed with the U.S. Securities and Exchange Commission.
Zinsner bought 5,882 shares of Intel stock at an average price of $42.5 on January 26, spending about $250,000. This is the first insider purchase in the company since 2024. For Intel, known for rare insider stock trades, the move is of particular significance, Benzinga notes.
"Dave's purchase reflects his confidence in Intel and his commitment to creating value for shareholders," a spokesperson said.
Zinsner's acquisition represents only a small portion of his stake in Intel, MarketWatch notes. According to documents, he directly owned more than 247 thousand shares of the company. At the closing price of January 27, their value is estimated at almost $10.9 million.
Intel shares jumped 10.5% in trading on January 28. They were losing about 22% from the closing level of trading on January 22, when the company released its report, before the Zinsner deal on January 26. Despite the recent weakness, Intel shares have gained 30% since the beginning of the year.
What are the analysts saying?
Wall Street analysts do not appear to share Zinsner's optimism. Of the 48 analysts covering the company's securities, only nine advise buying them, while 33 recommend holding them in a portfolio. The analysts' average target price is 16% above the last closing level.
Context
Intel's shares slipped sharply after the release of quarterly reports last week: management's comments failed to meet the market's inflated expectations. Investors, in particular, were hoping for more encouraging signals on the contract manufacturing business, but the company said that customers' decisions to switch to a new manufacturing technology are expected only in the second half of this year.
Intel remains one of the beneficiaries of the artificial intelligence boom in the server processor segment, but due to capacity constraints, the company is not yet able to fully meet the growing demand, MarketWatch notes.
This article was AI-translated and verified by a human editor
