Insider Weekends: Cluster of Insider Purchases at Intel

Many of us grew up in the age of the “Intel Inside” marketing campaigns and watched the company dominate the industry for several decades. Some might even remember those little gimmicky turbo buttons computers had to give you a little boost of processing power. In the current age of machine learning, cryptocurrency mining and embedded chips requiring vast amounts of processing power, Intel (INTC) has fallen behind both on the chip design and the manufacturing front.

The company hopes to turn things around and hired the well respected Pat Gelsinger as its CEO in February 201. The move was applauded by the hedge fund Third Point that now holds a large stake in Intel. Mr. Gelsinger has an engineering background with a Masters degree in Engineering from Stanford University and was one of the architects of Intel’s 80486 processor in the late 1980s. He brings the right combination of engineering chops and management experience, having previously served as the CEO of VMWare and the COO of EMC. This winning combination worked out great for AMD (AMD) when it hired Lisa Su as its CEO in 2014.

Founded in 1995 by Dan Loeb, Third Point is a New York based hedge fund with over $17 billion in assets under management. Third Point started a position in Intel in Q4 2020 and by Q2 2021, the position was a top 5 position for the firm with 14 million shares. Third Point asked Intel to focus its attention on regaining manufacturing leadership through its foundry business, where the company has lost significant ground to Taiwan Semiconductor (TSM) in recent years.

Many governments are treating semiconductor companies and semiconductor manufacturing as national security concerns and we have seen several mergers in the semiconductor space either get blocked or go through long multi-country regulatory approvals. The U.S. Department of Defense (DOD) launched a new program to use the U.S.-based commercial semiconductor foundry ecosystem to fabricate products required for critical Department of Defense systems. Intel has decided to invest nearly $20 billion in two factories in Arizona to meet demand from U.S. DOD and other commercial customers. Insiders of Intel probably see a brighter future for the company as five different insiders, including the CEO, made open market purchases as you can read below. The company has been growing its dividend for seven years in a row even as it has been buying back its stock. If Mr. Gelsinger can reverse the market share erosion and start growing the top line, Intel would be a worthwhile company to consider for long-term investors.

Welcome to edition 591 of Insider Weekends. Insider buying decreased significantly last week with insiders purchasing $65.52 million of stock purchased compared to $101.39 million in the week prior. Selling also decreased to $1.11 billion compared to $1.88 billion in the week prior.

Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week dropped to 17. In other words, insiders sold 17 times as much stock as they purchased. The Sell/Buy ratio this week was favorable compared to the prior week when the ratio stood at 18.55.

Notable Insider Buys:

1. Texas Capital Bancshares, Inc. (TCBI): $60.6

Shares of this regional bank were acquired by 5 insiders:

  • Director Robert W. Stallings acquired 60,000 shares, paying $60.29 per share for a total amount of $3.62 million. These shares were purchased indirectly by a trust.
  • Director Larry L. Helm acquired 5,000 shares, paying $60.52 per share for a total amount of $302,600. Mr. Helm increased his stake by 7.60% to 70,781 shares with this purchase.
  • Chief Financial Officer Julie L. Anderson acquired 4,000 shares, paying $60.41 per share for a total amount of $241,640. Ms. Anderson increased her stake by 6.05% to 70,129 shares with this purchase.
  • Director James H. Browning acquired 1,000 shares, paying $59.56 per share for a total amount of $59,560. Mr. Browning increased his stake by 6.26% to 16,966 shares with this purchase.
  • Director David S. Huntley acquired 825 shares, paying $60.57 per share for a total amount of $49,970. Mr. Huntley increased his stake by 14.64% to 6,460 shares with this purchase.

You can view the list of recent insider transactions for Texas Capital Bancshares, Inc. here.

P/E: 13.33 Forward P/E: 18.88 Industry P/E: 10.82
P/S: 3.28 Price/Book: 1.08 EV/EBITDA: N/A
Market Cap: $3.07B Avg. Daily Volume: 433,773 52 Week Range: $42.71 – $93.26

2. Intel Corporation (INTC): $49

Shares of Intel were acquired by 5 insiders:

  • Director James J. Goetz acquired 20,000 shares, paying $49.76 per share for a total amount of $995,200. Mr. Goetz increased his stake by 11.20% to 198,521 shares with this purchase.
  • Director Dion J. Weisler acquired 10,162 shares, paying $49.20 per share for a total amount of $499,975. Mr. Weisler increased his stake by 146.49% to 17,099 shares with this purchase.
  • CEO Patrick P. Gelsinger acquired 10,000 shares, paying $49.94 per share for a total amount of $499,398. Mr. Gelsinger increased his stake by 4.77% to 219,750 shares with this purchase.
  • Director Frank D. Yeary acquired 10,000 shares, paying $49.66 per share for a total amount of $496,595. These shares were purchased indirectly by a trust.
  • Director Risa J. Lavizzo-Mourey acquired 5,000 shares, paying $49.50 per share for a total amount of $247,500. Ms. Lavizzo-Mourey increased her stake by 70.63% to 12,079 shares with this purchase.

You can view the list of recent insider transactions for Intel Corporation here.

P/E: 9.5 Forward P/E: 13.28 Industry P/E: 30.39
P/S: 2.54 Price/Book: 2.21 EV/EBITDA: 5.9
Market Cap: $199.28B Avg. Daily Volume: 23,137,578 52 Week Range: $44.24 – $68.49

3. IDW Media Holdings, Inc. (IDW): $3.3

Director Howard S. Jonas acquired 640,000 shares of this diversified media company, paying $3.60 per share for a total amount of $2.3 million. These shares were purchased indirectly by a trust.

You can view the list of recent insider transactions for IDW Media Holdings, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: 20.64
P/S: 1.21 Price/Book: 2.39 EV/EBITDA: -5.08
Market Cap: $42.78M Avg. Daily Volume: 57,453 52 Week Range: $2.74 – $5.99

4. Associated Banc-Corp (ASB): $22.28

Director John F. Bergstrom acquired 50,000 shares of this regional bank, paying $23.00 per share for a total amount of $1.15 million. Mr. Bergstrom increased his stake by 53.61% to 143,259 shares with this purchase.

You can view the list of recent insider transactions for Associated Banc-Corp here.

P/E: 10.67 Forward P/E: 13.93 Industry P/E: 10.82
P/S: 2.99 Price/Book: 0.86 EV/EBITDA: N/A
Market Cap: $3.34B Avg. Daily Volume: 1,267,147 52 Week Range: $13.17 – $23.95

5. NVR, Inc. (NVR): $4894.8

VP, Chief Accounting Officer Matthew B. Kelpy acquired 100 shares of this homebuilder, paying $4860.00 per share for a total amount of $486,000. Mr. Kelpy increased his stake by 89.29% to 212 shares with this purchase.

You can view the list of recent insider transactions for NVR, Inc. here.

P/E: 15.87 Forward P/E: 12.22 Industry P/E: 12.12
P/S: 1.89 Price/Book: 5.7 EV/EBITDA: 9.79
Market Cap: $17.19B Avg. Daily Volume: 15,453 52 Week Range: $3875.2 – $5332.08

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. Facebook, Inc. (FB): $323.57

Shares of Facebook were sold by 2 insiders:

  • COB and CEO Mark Zuckerberg sold 288,350 shares for $326.01, generating $94 million from the sale. These shares were sold indirectly by various entities.
  • Chief Legal Officer Jennifer Newstead sold 125 shares for $328.69, generating $41,086 from the sale.

You can view the list of recent insider transactions for Meta Platforms, Inc. here.

P/E: 23.16 Forward P/E: 22.21 Industry P/E: 27.84
P/S: 8.01 Price/Book: 6.78 EV/EBITDA: 15.62
Market Cap: $900.09B Avg. Daily Volume: 17,975,920 52 Week Range: $244.61 – $384.33

2. Snap Inc. (SNAP): $52.58

Shares of this social media company were sold by 2 insiders:

  • Chief Technology Officer Robert C. Murphy sold 950,000 shares for $54.73, generating $51.99 million from the sale.
  • Chief Executive Officer Evan Spiegel sold 250,000 shares for $55.61, generating $13.9 million from the sale. These shares were sold indirectly by a trust.

You can view the list of recent insider transactions for Snap Inc. here.

P/E: N/A Forward P/E: 83.46 Industry P/E: 27.84
P/S: 22.69 Price/Book: 24.54 EV/EBITDA: -127.48
Market Cap: $84.64B Avg. Daily Volume: 19,727,106 52 Week Range: $37.35 – $83.34

3. UnitedHealth Group Incorporated (UNH): $460.47

Director Stephen J. Hemsley sold 125,000 shares of this diversified health care company for $451.46, generating $56.43 million from the sale.

You can view the list of recent insider transactions for UnitedHealth Group Incorporated here.

P/E: 28.58 Forward P/E: 21.27 Industry P/E: N/A
P/S: 1.55 Price/Book: 6 EV/EBITDA: 19.19
Market Cap: $434.18B Avg. Daily Volume: 2,604,140 52 Week Range: $307.36 – $461.39

4. Prologis, Inc. (PLD): $144.96

Chairman & CEO Hamid R. Moghadam sold 320,000 shares of this logistics real estate company for $144.26, generating $46.16 million from the sale. These shares were sold indirectly by a trust.

You can view the list of recent insider transactions for Prologis, Inc. here.

P/E: 54.83 Forward P/E: 63.58 Industry P/E: 51.32
P/S: 21.85 Price/Book: 3.3 EV/EBITDA: 37.97
Market Cap: $107.17B Avg. Daily Volume: 2,328,146 52 Week Range: $93.08 – $146.89

5. BlackRock, Inc. (BLK): $943.46

Chairman and CEO Laurence Fink sold 27,247 shares of this asset management company for $927.64, generating $25.28 million from the sale.

You can view the list of recent insider transactions for BlackRock, Inc. here.

P/E: 25.09 Forward P/E: 22.47 Industry P/E: 16.06
P/S: 7.65 Price/Book: 3.99 EV/EBITDA: 19.11
Market Cap: $143.39B Avg. Daily Volume: 479,049 52 Week Range: $606.45 – $959.89

You can view the full list of sales from this Insider Sales page.

The list of all insider purchases and sales by management people is only available to InsideArbitrage Premium and Plus members.

Disclaimer: Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

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