Analyst sentiment surrounding INTC is pessimistic
Intel Corporation (NASDAQ:INTC) announced plans earlier to operate its programmable chip unit as its own business, noting an initial public offering (IPO) should happen within the next few years.
At last check, Intel stock is up 0.6% at $35.92, while sporting a 35.8% lead so far in 2023. Shares are pacing for their fifth loss in six sessions, as they bounce off the 100-day moving average after pulling back from a Sept. 12, one-year high of $40.06.
Despite its blue-chip status, analysts are skeptical of INTC. In fact, 26 firms in coverage call it a “hold” or worse, while the remaining six say “buy” or better. Echoing this, the 12-month consensus target price of $35.37 is a slim discount to current levels, indicating a shift in sentiment could benefit the equity.
Options traders are taking a much more optimistic stance. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), INTC sports a 10-day call/put volume ratio of 3.06 that ranks in the 80th annual percentile of annual readings. In other words, calls have been more popular than usual.
It would be remiss not to note Intel stock’s Schaeffer’s Volatility Index (SVI) of 37% that sits higher than only 22% of annual readings — an indicator that volatility expectations are low at the moment.