Although down slightly in the pre-market, Intel (NASDAQ:INTC) stock rose yesterday following a much-needed insider buy. The company’s shares are currently trading at prices last seen in late 2012 following a disappointing earnings report.
On Aug. 5, CEO Pat Gelsinger purchased 12,500 shares of INTC stock at average per share prices ranging between $19.91 and $20.31. In total, the transaction was worth $251,946 and brought Gelsinger’s stake to 631,307 shares.
At the same time, Gelsinger’s insider purchases of INTC during the past year haven’t exactly fared well.
He last purchased 4,100 shares at $30.29 on May 1 and 4,000 shares at $31.42 on April 29. His prior purchases were executed at prices between $36.80 and $43.36. INTC currently trades at about $20.
INTC Stock: CEO Pat Gelsinger Buys 12,500 Shares
Gelsinger has also made several insider purchases of Mobileye (NASDAQ:MBLY) during the past year, as he is a member of the company’s board. Excluding his most recent buy, which was made on Aug. 5, all of his MBLY purchases are severely underwater. During the past year, he has purchased $1.4 million of INTC and MBLY.
Intel is in the process of restructuring its business and announced cost reduction measures in its earnings report. By the end of the year, it expects to complete a majority of its 15% headcount reduction. It also expects to reduce non-GAAP research and development and marketing, general and administrative expenses to roughly $20 billion in 2024 and $17.5 billion in 2025, with additional reductions in 2026.
“As a result of these actions, Intel aims to achieve clear line of sight toward a sustainable business model with the ongoing financial resources and liquidity needed to support the company’s long-term strategy,” said Intel.
Intel’s struggles come despite the company winning up to $8.5 billion in subsidies from the Biden administration last March.
Still, InvestorPlace contributor David Moadel believes that Intel could be worth looking in to given the negative sentiment surrounding the stock:
“Besides, what else could shock the market about Intel at this point? Everything awful thing that could happen, already did. So, if you have the guts and really want the glory (or at least, a two-bagger in the long run), go ahead and get yourself some Intel stock.”
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.
On the date of publication, the responsible editor held a LONG position in INTC.
