Intel is working with bankers to address recent weakness in its core business
Shares of Intel Corp (NASDAQ:INTC) are on the rise today, after reports that the semiconductor name is working with bankers to address weakness in its core business, exploring options such as a separation of its foundry unit. At last glance, INTC was up 7.8% at $21.69.
Should these gains hold, Intel stock will mark its largest single-day percentage gain since October. The equity has been struggling following a massive 26.2% post-earnings bear gap on Aug. 2, hitting a nearly 14-year low of $18.84 on Aug. 8. Year to date, INTC is down 56%.
Call traders are buying in on the optimism today, however. So far, 399,000 calls have been exchanged, which is quadruple the amount typically seen at this point. The weekly 8/30 22-strike call is the most popular, where new positions are being bought to open.
The majority of analysts carry a “neutral” rating on INTC — 30 of the 36 in coverage, to be exact — while three carry a “buy” and three a “sell.” Meanwhile, the 12-month consensus price target of $26.06 sits at a roughly 20% premium to current levels, but would’ve been a heavy discount to last month’s peak of $37.16.