Pat Gelsinger, the CEO of Intel (NASDAQ:INTC), has expanded his stake in the company by purchasing nearly $250,000 worth of Intel stocks, as revealed in a late filing on Thursday. The purchase was made through the Gelsinger family trust, which now holds over 25,000 shares.
Gelsinger bought 3,400 shares at $36.79 each and an additional 3,375 shares at $36.82 each on Wednesday. This comes on top of his direct ownership of around 38,000 shares and additional holdings through other trusts. According to estimates from FactSet, Gelsinger's total ownership now exceeds 500,000 shares.
Despite a recent surge of 9.3% following the earnings report and consistent gains in the past few days, Intel's share price is still 45% below its 2021 peak of $68.26. The increased investment by the CEO could be seen as a sign of confidence in the company's future prospects, even as it grapples with market challenges and strives to regain its previous high share price.
InvestingPro Insights
InvestingPro data and tips offer valuable insights into Intel's current financial situation and future prospects.
InvestingPro Tips highlight that Intel has a history of maintaining dividend payments, having done so for 32 consecutive years, and even raised its dividend for the last 8 years. This is a testament to the company's resilience and commitment to its shareholders. However, analysts anticipate a sales decline this year and a drop in net income, reflecting the market challenges the company is currently facing.
From the InvestingPro Data, Intel has a substantial market capitalization of $158.94 billion, indicating its size and influence in the market. Despite a negative P/E ratio, indicating a lack of profitability in the last twelve months as of Q3 2023, the company's stock is trading near its 52-week high. This could be a sign of investor confidence in the company's ability to overcome its current challenges and return to profitability.
For more detailed insights and tips, consider exploring InvestingPro's resources, which include numerous additional metrics and tips for Intel and other companies.
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