Recent insider trends for Intel Corporation (NASDAQ:INTC) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of INTC, the data has a lot to say about how the stock might perform going forward.
Institutions own 68.06% of Intel Corporation (INTC)’s shares. The total value of these holdings, in millions, is $141,398. Among active positions in the latest quarter, 906 holders increased their positions by a total of 160.78 million shares, 928 holders decreased the positions by a total of 138.94 million shares, and 179 holders held their positions. This works out to a net increase in ownership of 21.84 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 116 holders initiated new positions by a total of 22.3 million shares and 62 holders exited their positions by a total of 6.26 million shares. This nets out to an increase of 16.04 million shares and is a bullish sign for INTC.
In the last three months, insiders executed a total of 30 trades. 30 were sells. Insider ownership decreased by a total of 1.65 million shares, which suggests that INTC’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 1 buys and 101 sells, and ownership decreased by a net of 2.8 million shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Intel Corporation (NASDAQ:INTC)’s short interest is 116.41 million shares, or % of the float. This represents a decrease of -24% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for INTC. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that INTC is a hold, which implies that INTC is expected to perform in line with the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Intel Corporation (NASDAQ:INTC) is fairly valued.