Patrick Gelsinger, CEO at Intel Corp (INTC), recently picked up 14,800 shares. The buy increased his holdings by nearly 8 percent, and came to a total cost just over $501,000.
This is the first insider activity at the company since May, when the company CFO bought alongside the CEO as well. Since the start of the year, insider buying has more than exceeded insider selling. Over the past three years the picture is more evenly mixed between buying and selling.
Overall, insiders at the company own 0.06 percent of shares.
The chipmaker has seen shares slide by 35 percent in the past year, amid a slowing economy and mixed outlook for the chip space amid supply chain shortages and production concerns. Intel has been lagging from some peers in the past few years, but is working to build out more production capacity and expand into new markets.
Action to take: Shares currently trade for about 8 times earnings, and the drop in price has pushed the company’s dividend yield up to nearly 4.2 percent. Shares will likely move higher in time, which should also add some sizeable capital gains once the market moves higher. Patient investors can likely get a slightly better price in the coming weeks.
For traders, there may be some very short-term downside ahead. The November $30 puts, last going for about $1.15, offer mid-double-digit upside in the coming weeks on any further drop in shares.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.