Intel Corporation (INTC) Enters The Drone Space With Ascending Technologies Acquisition


While drone technology seems to be the future in many respects, we have seen numerous large tech companies enter the space over the last 12 months. It appears as if Intel Corporation (NASDAQ:INTC) will be the next multi-billion dollar tech giant to enter the drone industry as the company has just announced the acquisition of the German drone manufacturer, Ascending Technologies.

While Intel Corporation (NASDAQ:INTC) has not disclosed the price of this acquisition, they have revealed plans to hire back many, if not all the current employees of Ascending Technologies. Intel Corporation (NASDAQ:INTC), who had already been supplying Ascending Technologies with their 3-D depth cameras for drone collision avoidance systems, may have been spurred by rival Qualcomm’s announcement last year that they too would be entering the drone space. It will be interesting to see how Intel works this acquistion into their business model in the months ahead.

The stock is down 2.13% or $0.74 following the news, hitting $33.72 per share. Approximately 13.62M shares traded hands. INTC shares have declined 0.03% since May 29, 2015 and are currently downtrending. It has outperformed the S&P500 by 2.98%.

From a total of 22 analysts covering Intel Corporation (NASDAQ:INTC) stock, 11 rate it a “Buy”, 0 a “Sell”, and 11 a “Hold”. This means that 50% 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 $37 which is 9.73% above today’s ($33.72) stock price. Intel Corporation was the topic of 48 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Needham maintained shares on December 30 with a “Buy” rating. Macquarie Research maintained shares with a”Neutral” rating and a $32 target share price in their report from an October 14. UBS 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, RBC Capital Markets maintained the stock with a “Sector Perform” 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 insider purchases, and 11 insider 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 $1.06 million. 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 $162.62 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 14.41 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.