4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 76
Intel Corporation (NASDAQ:INTC) is a California-based company that manufactures and sells computer products and technologies worldwide. Redditors believe that Intel Corporation (NASDAQ:INTC) is attractively valued with a P/E ratio of 8 and a 4% dividend yield. According to the Reddit community, Intel Corporation (NASDAQ:INTC) will likely be the largest benefactor of the chips bill, and will be the leading chip producer in the US supplying to all the major markets at a time when competitors are looking to exit unstable international markets.
Northland analyst Gus Richard on July 29 maintained an Outperform rating on Intel Corporation (NASDAQ:INTC) and lowered the price target on the stock to $55 from $62 after the company missed Q2 expectations and “guided down by a lot”. There “really is no plausible excuse for not pre-announcing the quarter,” which “brings into question the company’s ability to forecast the next 90 days and understanding the role of IR,” said the analyst. Intel Corporation (NASDAQ:INTC) forecasts that Q2 and Q3 will be the bottom, and the analyst hopes that products built on Intel 4 and Intel 3 “will help turn the tide”, while reiterating that “no one said turnarounds were easy”.
Among the hedge funds tracked by Insider Monkey, Seth Klarman’s Baupost Group is the leading stakeholder of Intel Corporation (NASDAQ:INTC), with 16.5 million shares worth $822.3 million. Overall, 76 hedge funds were bullish on the stock at the end of March 2022, up from 72 funds in the prior quarter.
Here is what O’Keefe Stevens Advisory has to say about Intel Corporation (NASDAQ:INTC) in its Q1 2022 investor letter:
“Intel announced they are removing stock-based compensation from non-GAAP earnings in 2022 to report results aligning with semiconductor peers. This may seem like a reasonable thing to do as comparability between peers becomes easier. On the other hand, what exactly is the point of adjusted earnings? It is not to conform to some industry norm or because the management teams need to make performance metrics. The point of adjusting earnings is to present results in a light that more closely reflects the actual underlying performance of the business. That is, backing out expenses that might be one-time in nature, such as legal or fire expenses. First off, share-based compensation is an actual expense. Decreasing my ownership stake in a company without receiving any compensation is not free. If a company paid its employees in all stock, would they add back the entire SBC? What a margin profile that would be. Second, should a company be worried about reporting results similar to other companies? Every company is unique. Management should not waste time determining what expenses should be excluded. Run the business, don’t worry about adjusting the numbers.”
