Mobileye (NASDAQ:MBLY) stock is a hot topic among traders on Monday as they wonder what Intel (NASDAQ:INTC) will do with its stake in the autonomous driving company.
The lockup period for MBLY stock ends today and Intel holds a large number of MBLY shares. As such, traders are wondering if Intel will sell its stake in Mobileye now that it is able to do so.
There’s no clear answer to this just yet, but analysts have weighed in on the matter. The general consensus is that Intel will likely reduce its holdings in MBLY stock now that the lockup period is over.
However, that doesn’t mean Intel intends to sell all of its shares. The more likely result is that it will sell some shares while continuing to hold the majority of its investment in the company.
Deutsche Bank’s MBLY Stock Expectation
Deutsche Bank analysts said the following about this in a note to clients obtained by Investing.com:
“Our expectation is that Intel could look to reduce its stake in Mobileye in the near term, while maintaining >80% ownership (for tax reasons). We view the share lockup expiration as a solid potential opportunity for investors, as we believe any share offering from Intel will be a well managed process and the potential technical hit to stock may be less than feared.”
MBLY stock is up slightly as of Monday morning. The stock is also up 36.9% since the start of the year.
Investors looking for more of the most recent stock market news are in the right place!
InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Monday! A few examples of that include what’s happening with shares of lithium stocks, BlackRock (NYSE:BLK) stock and Getty Images (NYSE:GETY) stock. You can catch up on all of this news at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
