At the time of writing, the share price for Intel Corporation (INTC) reached $28.91, a 0.41 increase in share price and a 2.16% increase overall in the last 24 hours. The price shot up to $30.07 at the beginning of the month, but has since gone back down and oscillated between $29 and $28. While the company has seen some growth, it continues to lag behind competitors.
Let’s take a look at Intels’ performance in recent years, and its current trends, to get a good idea of where it’s headed going into 2023.
Intel (INTC) closed at $28.73 on the most recent trading day, moving +0.14% from the previous session. Compared to the S&P 500 gains of 0.73%, the stock gained is lagging behind the rest. During the same period, the Dow gained 0.31%, while the Nasdaq, a tech-heavy index, gained 0.01%.
In the month prior to today’s trading the former ruler of the chipmaker industry lost 5.47% of its value. Over the same period, the Computer and Technology sector lost 0.58% and the S&P 500 gained 0.09%.
Intel’s performance during December. Chart by Yahoo Finance.
Looking at Intel’s performance over the last month, all indicators show that while the company recently had a small positive growth, it’s potential going into the rest of the month is still very mild.
Here’s a look at Intel’s five, twenty, and fifty day periods:
- 5 day period: moving average of 28.59, with a 0.50 price increase and a 1.77% increase.
- 20 day period: moving average of 29.15, with a 1.88 price decrease and a 6.12% increase.
- 50 day period: moving average of 28.11, with a 1.13 price increase and a 4.08% increase.
Now, as Intel approaches its next earnings release, things are still not looking that great. Intel is expected to report earnings of $0.23 per share on that day, representing a decline of 78.9% year over year. Net sales are expected to be $14.5 billion, down 25.76% from a year ago, according to the Zacks Consensus Estimate.
Analysts are expecting earnings per share of $1.97 and revenue of $63.51 billion for the full year. The changes from last year would be -63.99% and -18.6%, respectively.
Intel Corp’s 12-month price target for 2023 is $29.00, with a high estimate of $56.28 and a low estimate of $18.00. This represents an increase of +0.55% over the last price of 28.84.
As for the attitude towards the stock, Intel Corp. is currently a hold according to most analysts. The rating has remained unchanged since November, when it was rated hold. However, some indicators are currently positioning Intell as a Sell, but most remain neutral.
Intel Analysis Conclusion
Intel is not doing so hot right now, as it continues to lag behind its main competitors and even the Nasdaq. The opinion seems a bit split between buy or sell, but most polled analysts are leaning towards hold instead.
How Often Does Intel Pay a Dividend?
Traditionally, Intel has paid dividends quarterly during the 1st day of March, June, September, and December. This means that the next dividend pay out would be on the 1st of March 2023. However, the declaration and payment of dividends are at the discretion of the Company.
Its most recent dividend payout was of $0.365 per share ($1.46 per share on an annual basis) on the company’s common stock, and it was paid on Dec. 1, 2022, to stockholders of record on Nov. 7, 2022.
Can Intel Sustain Its Dividend?
Intel will be able to maintain its free cash flow by implementing a set of cost-saving measures, including layoffs, portfolio cuts, and more aggressive cost controls. According to estimates, free cash flow will be in the $2 billion to $4 billion range this year.
For the time being, Intel’s balance sheet is fully capable of supporting the dividend if it avoids burning through too much cash. The company had $39.5 billion in debt and $24.5 billion in cash and investments at the end of the third quarter. Each year, dividends consume approximately $6 billion in cash, so a few years without free cash flow is certainly possible.
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