Intel Corporation (INTC) Completes $16.7 Billion Acquisition of Altera


Back in June Intel Corporation (NASDAQ:INTC) announced that they entered an agreement to purchase all the outstanding shares of Altera for a staggering $16.7 billion. This equated to $54 per share. Today, the world’s largest semiconductor chip manufacturer has announced that the deal has finally been completed.

“Altera is now part of Intel, and together we will make the next generation of semiconductors not only better but able to do more,” explained Intel CEO Brian Krzanich. “We will apply Moore’s Law to grow today’s FPGA business, and we’ll invent new products that make amazing experiences of the future possible – experiences like autonomous driving and machine learning.”

Intel will now integrate Altera into the company as a new unit called Programmable Solutions Group (PSG), which will be headed up by Dan McNamara, an Altera veteran.

The stock is down 0.31% or $0.11 following the news, hitting $34.87 per share. Approximately 6.93 million shares traded hands. INTC shares have risen 4.57% since May 22, 2015 and are currently uptrending. It has outperformed the S&P500 by 7.63%.

From a total of 21 analysts covering Intel Corporation (NASDAQ:INTC) stock, 10 rate it a “Buy”, 0 a “Sell”, and 11 a “Hold”. This means that 48% of the ratings are positive. The highest target price is $60.0 while the lowest target price is $25. The mean of all analyst targets is $36.95 which is 5.97% above today’s ($34.87) stock price. Intel Corporation was the topic of 47 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on December 9 to a “Buy” rating. Macquarie Research maintained shares with a”Neutral” rating and a $32 target share price in their report from an October 14. Topeka Capital Markets maintained INTC stock in a recent report from November 20 with a “Buy” rating. Pacific Crest maintained the rating on October 14. Pacific Crest has a “Overweight” rating and a $37 price target on shares. Finally, JMP Securities upgraded the stock to a “Market Outperform” rating in a report they issued on a November 20.

The institutional sentiment increased to 0.83 in Q2 2015. It’s up 0.02, from 0.81 in 2015Q2. The ratio increased, as 86 funds sold all their Intel Corporation shares they owned while 732 reduced their positions. 72 funds bought stakes while 605 increased their total positions. Institutions now own 3.04 billion shares which is 0.34% less than the previous share count of 3.05 billion in 2015Q2.

Srb Corp holds 14.65% of its total portfolio in Intel Corporation, equating to 3.54 million shares. Alpine Investment Management Llc owns 3.34 million shares representing 11.02% of their total US portfolio. Moreover, Hawkins Capital L.P. has 10.19% of their total portfolio invested in the company, equating to 722,488 shares. The Delaware-based Ashmore Wealth Management Llc has a total of 9.05% of their portfolio invested in the stock. Central Securities Corp, a New York-based fund reported 1.10 million shares owned.

Since April 21, 2015, the stock had 0 buys, and 11 sales for a total of $4.32 million in net activity. Pearson Gregory R sold 1,506 shares worth $51,472. Bryant Andy D sold 23,000 shares worth $772,968. Krzanich Brian M sold 35,000 shares worth $1.06M. James Renee Jo sold 3,602 shares worth $108,060. The insider Holt William M sold 6,786 shares worth $192,020.

Intel Corporation is engaged in the design and manufacture of digital technology platforms. The company has a market cap of $165.55 billion. The Firm sells these platforms to original equipment manufacturers , original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. It has 14.9 P/E ratio. The Company’s platforms are used to deliver a range of computing experiences in notebooks, 2 in 1 systems, desktops, servers, tablets, smartphones, and the Internet of Things.