Should You Buy Intel Corporation (INTC) after CEO Departure?

Intel (NASDAQ: INTC) stock is in the news after its CEO Brian Krzanich abruptly resigned. The stock fell after the news of the resignation. In June, Bernstein analyst Stacy Rasgon lowered rating for Intel stock to underperform from market perform and decreased his price target to $42 per share from $54. The analyst said the resignation of Brian Krzanich shows “structural” issues of the company.

However, CNBC’s Jim Cramer thinks that the CEO departure was due to his personal issues and that has nothing to do with the company’s fundamentals. Kramer thinks that Intel stock is cheap and should be bought on the current weakness.

Jim Cramer: Intel is too cheap

Intel's stock is too cheap at these levels from CNBC.

Cowen analyst Matthew Ramsay recently said in a report that Intel is not under threat from a possible trade war between the US and China.

Over the current book year the total revenue will be 68,43 billion USD (consensus estimates). This is slightly more than 2017's revenue of 62,76 billion USD.

Historical revenues and results Intel plus estimates 2018

The analysts expect for 2018 a net profit of 19,14 billion USD. Most of the analysts anticipate on a profit per share of 4,01 USD. Based on this the price/earnings-ratio is 13,01.

Per share the analysts are expecting a dividend of 1,17 USD per share. Intel 's dividend yield thus equals 2,24 percent. The average dividend yield of the semiconductor companies is a moderate 0,5 percent.

Most recent target prices around 56 USD

The most recent recommendations for the semiconductor company are from KBC Securities, KeyBanc Capital Mkts / McDonald and Independent Research.

Intel 's market capitalization is based on the number of outstanding shares around 246,81 billion USD.

At 17.39 the stock trades 1,33 percent lower at 52,18 USD.

Historical stock prices Intel

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