Intel Corporation (INTC): How Are The Bears Trading It?

In the financial blogosphere, there are a multitude of metrics for Intel Corporation (NASDAQ:INTC) investors to keep an eye on, but it is absolutely crucial to take note of a company’s shorts. Two indicators we can use are: (a) the chunk of a company’s float that short sellers are presently shorting, in addition to (b) the change in short interest.

More shorting typically means what it implies: Wall Street has turned less optimistic about a company. Overselling, though, sometimes has a bullish effect on stock price, as the shorts can be forced to buy their stock.

Here at Insider Monkey, it’s no secret that we track hedgies’ sentiment, but it’s eqaully as beneficial to pair this data with overall short interest data. In some high-profile cases, large players might indicate that they’re bearish on a stock, but it is not an SEC requirement. Nevertheless, many individual players may wish to stay away from heavily short sold companies with elevated hedge fund interest, while others may prefer short-squeeze candidates. For those wanting a time-tested piggybacking strategy, discover the details of our premium strategy.

Let’s take a peek at the recent info surrounding Intel Corporation (NASDAQ:INTC).

Studying the latest FINRA short interest data, which is reported two times monthly, we can discover that Intel Corporation (NASDAQ:INTC) has a short interest of 4.50% of float, down slightly from the previous month. With a float of 4.97B shares, this reveals a short ratio of 4.40.

It is also beneficial to take note of hedge fund sentiment via their 13F filings. Of the funds we track, Jean-Marie Eveillard’s First Eagle Investment Management had the biggest position in Intel Corporation (NASDAQ:INTC), worth close to $729.7 million, accounting for 2.4% of its total 13F portfolio. In the second spot is Paul Ruddock and Steve Heinz of Lansdowne Partners, with a $451.4 million call position; 6.2% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Ken Fisher’s Fisher Asset Management, Jim Simons’s Renaissance Technologies and Phill Gross and Robert Atchinson’s Adage Capital Management.

Also, insider purchases made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time period, Intel Corporation (NASDAQ:INTC) has seen zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

Let’s also take a look at activity in other stocks similar to Intel Corporation (NASDAQ:INTC). These stocks are STMicroelectronics N.V. (ADR) (NYSE:STM), NXP Semiconductors NV (NASDAQ:NXPI), Avago Technologies Ltd (NASDAQ:AVGO), Maxim Integrated Products Inc. (NASDAQ:MXIM), and Texas Instruments Incorporated (NASDAQ:TXN). This group of stocks belong to the semiconductor – broad line industry and their market caps resemble INTC’s market cap.

The aforementioned figures–short data, hedge fund info and insider trading history–are what every reader should account for. Although it is difficult to formulate a practical strategy from short interest data, the latter two give lots of market beating opportunities if you know where to look.