David Zinsner, CFO at Intel (INTC), recently picked up 5,550 shares. The buy increased his holdings by 166 percent, and came to a total price of just over $246,000.
The buy comes one day after the company CEO, Patrick Gelsinger, also picked up 5,500 shares, a buy that increased his stake by nearly 4 percent. Insiders last bought shares following the company’s earning in February.
And late 2021 saw a flurry of insider buys that bucked the usual trend of tech insiders being big sellers of shares.
Despite these strong buys in the past few months, insiders at the chip giant own 0.06 percent of the company.
Shares are down 20 percent over the past year, as revenue has grown a slow 3 percent and earnings have dropped 21 percent. Recent earnings in the space suggest the company has lost market share in a number of areas.
Action to take: Despite the slowdown, shares trade at an attractive 12 times forward earnings. Plus, the company is a dividend growth play with a starting yield of about 3.3 percent right now. The company also has a large pile of cash, and expansion plans into new areas could play out well in the months and years ahead.
For traders, the September $50 calls, last going for about $1.95, offer mid-to-high double-digit returns on an upswing 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.