Intel Stock Slides on Disappointing Forecast

The stock is brushing off an upbeat fourth-quarter report

Deputy Editor
Jan 27, 2022 at 11:30 AM
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Intel Corporation (NASDAQ:INTC) is suffering a post-earnings pullback this morning, as analysts chime in with price target adjustments. The company reported fourth-quarter profits of $1.09 per share, which is higher than analysts' anticipated 91 cents per share, as well as a revenue beat. However, Intel's current-quarter forecast came in below expectations, as CEO Patrick Gelsinger noted continuing supply constraints. At last glance, INTC was down 6.9% to trade at $48.10. 

So far, no fewer than four analysts have responded to the report with price-target cuts, including Credit Suisse, though the firm stated that "Gelsinger is checking all the right boxes, and customer engagement and sentiment have improved dramatically." Meanwhile, Truist Securities raised its price target by $1 to $53. Analysts are still dramatically bearish on INTC, with 20 of the 23 in coverage carrying a "hold" or worse rating. 

Today's slump has Intel stock falling below its year-to-date breakeven. However, familiar support at the $48 level appears to be keeping today's losses in check. Longer term, the equity has been falling since the 260-day moving average kept a lid on its mid-January rally. 

Options traders have been quick to the draw this morning, with options volume running at four times what's typically seen at this point, and pacing for the top percentile of its annual range. More specifically, 203,000 calls and 123,000 puts have crossed the tape so far. The April 60 call is the most popular, followed by the 52.50 call in the same monthly series, with new positions being opened at the latter. 




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