Intel Stock Lower Despite Possible Moovit Deal

Intel is in advanced talks to acquire Moovit for $1 billion

Deputy Editor
May 4, 2020 at 10:18 AM
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Intel Corporation (NASDAQ:INTC) is making headlines this morning, after TechCrunch reported over the weekend that the chip company is reportedly in advanced talk to acquire Israeli public transit app developer Moovit for $1 billion. Moovit, whose free mobile navigation app provides transit data to more than 750 million users in 100 countries, previously raised $133 million from investors such as Intel, BMW iVentures and Sequoia Capital. 

Intel stock is unable to take advantage of the news, last seen down 0.7% at $57.08. However, a floor has emerged at the $57 level, which coincides with their 100-day moving average. Year-to-over-year, INTC is up 10%, but remains a ways off its Jan. 24 20-year high of $69.29. 

The majority of analysts covering INTC are cautious, with 18 out of 29 rating it a “hold” or worse. Plus, the consensus 12-month price target of $62.62 sits at a slim 9% premium to current levels.

On the other hand, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.65, sits in the low 19th percentile of its annual range, suggesting suggesting that short-term options players have rarely been more call-heavy during the past 12 months.

What's more, Intel stock's Schaeffer's Volatility Scorecard (SVS) sits high at 98 (out of 100), showing that the stock has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers.


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