Intel stock tumbled 16% after the chip giant said it was having production issues. CEO Robert Swan bought up shares through automated transactions.
Cayce Clifford for IntelRobert Swan, CEO of chip giant , bought shares after a recent swoon.
Intel stock dove after the chip giant reported that it was seeing delays in the development of cutting-edge seven-nanometer production technology. The news, disclosed late on July 23, overshadowed a strong second-quarter earnings report.
Intel shares (ticker: INTC) plunged the following day, July 24, closing 16% lower at $50.59. Swan paid $401,050 that day for 8,021 shares, an average per share price of $50. He now owns 293,594 Intel shares in a personal account, and an additional 3,364 shares through a trust, according to a form that he filed with the Securities and Exchange Commission.
Intel didn’t make CEO Swan available for comment on his stock transactions.
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Swan made the purchases through what is known as Rule 10b5-1, which automatically executes transactions once preset parameters, such as price and volume, are met. Automated plans are intended to remove potential bias that an insider may have from knowledge of material nonpublic information.
Swan had adopted a plan on April 27, and this is the first transaction that it has executed. His latest stock purchase is his first since buying $500,000 worth of Intel stock on Aug. 28, 2019, also through an automated transaction.
Credit Suisse analyst John W. Pitzer wrote in a July 27 report that Intel stock is in the “penalty box.” Pitzer rates the shares at Outperform with a $70 price target, representing more than 40% upside from recent levels.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
August 08, 2020 at 05:05AM
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Intel CEO Robert Swan Bought Shares After They Plunged - Barron's
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