Mobileye (NASDAQ:MBLY) stock has shed nearly 30% year-to-date. However, Mobileye director and Intel (NASDAQ:INTC) CEO Pat Gelsinger believes that the Israeli autonomous driving company still has upside potential.
On April 29, Gelsinger purchased 2,000 shares at an average per share price of $27.53. On May 1, he added another 1,611 shares at $28.16, bringing his total purchase amount to about $100,000. Following the transaction, the Intel CEO now owns 132,706 shares of Mobileye through a trust.
This marks Gelsinger’s second insider purchase of MBLY stock in 2024 based on Form 4 filings. He previously purchased $99,915 worth of shares in late January at an average per share price of $27.75. Additionally, Gelsinger has purchased about $400,000 of MBLY during the past year.
MBLY Stock: Pat Gelsinger Picks Up $100,000 of Shares
Gelsinger’s purchase comes about a week after Mobileye reported its first-quarter earnings on April 25. The results led to a decline in MBLY due to its Tier 1 customers using up their excess inventory. As a result, revenue fell by 48% to $239 million, while the company reported a diluted GAAP EPS loss of 27 cents compared to a loss of 10 cents year-over-year. Gross margin plunged to 23% compared to 45% a year ago, while net loss accelerated to $218 million from $79 million.
“The financial results in the first quarter reflect a supply chain reset as the excess inventory held by our customers is consumed,” said President and CEO Amnon Shashua. “We are encouraged that the inventory draw-down and associated recovery in revenue appears to be on-track to what we laid out in January.”
Mobileye noted that all of its Q1 key operating metrics were affected by reduced EyeQ shipments as a result of customer excess inventory. On the bright side, these metrics are expected to improve later on in 2024 as volumes and revenue normalizes. This year’s revenue guidance was set to between $1.83 billion and $1.96 billion.
Wall Street had mixed reactions to the quarter. Morgan Stanley lowered its price target to $25 from $26, while Canaccord Genuity raised its price target to $37 from $31. Piper Sandler was also on the bullish front and raised its target to $32 from $31.
On the date of publication, Eddie Pan 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.
