Intel CEO Pat Gelsinger bought more shares

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After a tough 2022, the stock has continued to fall this year. A few weeks after CEO Pat Gelsinger bought shares on the open market in January, he snagged more at a lower average purchase price.

Intel (Ticker: INTC) is about flat for the year, but the chipmaker’s shares remain near the October intraday low of $24.59, a level not seen since March 2014.

The company is facing a wall of concern, fueled by fears that a disappointing chip outlook will only get worse. Intel did what it could to prepare for a prolonged downturn, including cutting its dividend by 66%. “Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and to maintain our momentum in rebuilding our execution engine,” Gelsinger said in the Feb. 22 announcement of the dividend cut. IDM 2.0 is the next phase of Intel’s integrated device manufacturing model.

The next day, Gelsinger paid $250,000 for 9,700 shares, an average price of $25.68 a share. Accordingly a shelf Along with the Securities and Exchange Commission, Gelsinger bought the stock through a family trust that now owns 18,700 Intel shares. He also owns 52,798 shares in a personal account and 361,099 shares through other trusts.

Intel says, “The purchase of Pat reflects his confidence in Intel’s long-term strategy and transformation.”

His last open purchase of Intel stock was about a month ago. On Jan. 31, Gelsinger paid $250,000 for 9,000 shares, an average price of $27.83 a share. The purchase was also made through the family foundation.

Inside Scoop is a regular feature of Barron’s that covers stock transactions by executives and board members – known as insiders – as well as major shareholders, politicians and other prominent figures. Because of their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory authorities.

Write to and follow Ed Lin at edward.lin@barrons.com @BarronsEdLin.