Intel Corporation had announced a restructuring program in April in order to cut its operating expenses worth $1.2 billion on an annual basis, in which laying off employees and pulling out certain projects were part of the said program.
However, the microprocessor giant told investors that despite of its restructuring program, it plans to "increase investments in the products and technologies that will fuel revenue growth, and drive more profitable mobile and [personal computer] businesses."
During the last quarter, Intel reported its research and development spending, rallying by 5% year-over-year with a total of $142 million in additional spending.
Investors Considers Intel Stocks
Intel found support with respect to its dividend increases, in which the payout has increased from $0.02 to $0.26 and another hike is anticipated in the next quarter. However, company shares were disappointing last month after posting a weak guidance of its third quarter earnings report.
Ahead of a bearish tone along with the NASDAQ on November 4, shares was seen rallying steadily since then. In addition, analysts claimed that buying the underlying aggressively on pullbacks gets a maximum of investment.
Vetr Inc. Upraded Intel Corp.’s Stock Rating
Shares of Intel Corp. steadies at $35.20 on Thursday, with a trading volume of 15,843,618 shares. The tech giant posted a 50-day moving average price of $35.60 and a 200-day moving average price of $34.37.
Meanwhile, the company’s market capitalization stood at $166.81 billion, while its price-to-earnings ratio settled at 16.52 and a beta of 1.07. The company posted a 52-week low of $27.68 and a 52-week high of $38.36.
Vetr upgraded its ratings on Intel Corp. from a “buy” rating to a “strong-buy” rating issued on Thursday. At present, the brokerage firm has a price target of $39.45 on the company’s stock, with Vetr’s target price suggesting a potential upside of 12.07% from the earlier stock’s close.
Further, the company disclosed a quarterly dividend which will be paid on December 1st. Shareholders of record on November 7th will be issued a dividend of $0.26 per share, citing the ex-dividend date is November 3rd, which suggests an annual dividend of $1.04 and a dividend yield of 2.95%.
Current Stance of Intel Corp’s Stock
The chart below illustrates Intel Corp. stock’s movement ahead of its third quarter earnings report along with the recent dividend hike.
Given a consolidating movement of the stock, it is shown here that today’s candlestick tried to position above resistance 35.27 in a light trading volume. In essence, the stocks are gradually recovering from its recent drops.
As shares of the Intel Corporation is currently consolidating and attempts to rise from its earlier drops, we conclude that market participants are recommended to still wait on the sidelines as today’s close left an unsure forecast for the next session.
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