Patrick Gelsinger, CEO at Intel (INTC), recently bought 9,700 shares. The buy increased his stake by 2 percent, and came to a total cost just over $249,000.
That’s the first buy in nearly a month, following a 9,050 share pickup from the company CFO, which came to a cost of about $251,400 when it was made. Overall, company insiders have been steady and active buyers in the past year, with only one small insider sale.
Overall, insiders at the chipmaker own 0.1 percent of shares.
The stock was volatile last week as the dividend was cut by about two thirds. However, shares held up fairly well, likely due to the fact that the previous payout was seen as unsustainable.
Shares have been cut in half over the past year, and revenues is down over 30 percent. The chipmaker has struggled relative to other players in the market.
Action to take: Shares may end up moving a big higher from here in the coming weeks, as the stock was likely pricing in a dividend cut in recent weeks.
Intel’s new dividend works out to about 2 percent, which is still reasonable for a tech stock. If Intel can grow from here or buy back shares with the cash flow, the share price should trend higher.
For traders, the July $30 calls, last going for about $0.70, can likely deliver mid-double-digit returns in the months ahead.
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.