Intel stock wipes off a target price reduction from $ 65 to $ 60
Name of the blue chip semiconductor Intel Corporation (NASDAQ: INTC) wipes off a target cut by Citigroup to $ 60 from $ 65 this afternoon. The broker noted that component shortages are causing PC supply chain downtime, adding that it “remains concerned that excess inventory has built up and / or lower demand has been forecast”. In response, the analyst in question also cut INTC’s sales and earnings and forecast downside risks for the rest of the chip industry. On the latest review, Intel stock remains up 0.5% to $ 55.92.
Despite Citigroup’s dire outlook, Intel stock has just appeared on the list of Schaeffer’s senior quantitative analyst Rocky White’s list of stocks that have attracted the highest weekly option volume in the past two weeks, with new names highlighted in yellow. More precisely, 374,178 weekly calls and 79,719 weekly puts were exchanged during this period, a strong call bias that is worth a second look.
If you dig deeper, the April 12 high of $ 68.49 for the year is far away. The stock gaped at the end of April thanks to the headwind from the well-publicized Semiconductor shortage. Since then, INTC has struggled with overhead pressures at the $ 58 mark, which coincides with its 50-day moving average. In the past six months, however, equity has increased 20.6%.
Analysts are predominantly pessimistic about Intel stocks, with 19 of the 27 reporting a tepid “hold” or worse rating, while the remaining eight say “buy” or better. Meanwhile, the 12 month consensus target of $ 64.72 is a 15.8% premium over current levels, suggesting that more target / cut or downgrades may come.
Now seems like a good opportunity to weigh INTC’s next move, according to Schaeffer’s volatility index (SVI) of 26%, which is in the 20th percentile of last year’s readings. This implies that option players are currently pricing in relatively low volatility expectations. In addition, security is Schaeffer’s volatility scorecard (SVS) stands at 82 out of 100, which means Intel stock has exceeded options traders’ volatility expectations for the past 12 months.