Intel and Fox execs buying shares is a good sign for investors
Investors may want to consider buying shares if they see management doing the same at companies like Intel and Fox. This could be a sign that those in the know believe the stock is undervalued and has good potential for future growth
There are a few reasons why insiders might buy their own shares. Maybe they believe the stock is undervalued and they want to increase their stake in the company. Or, they could be trying to send a signal to the market that they believe the stock is a good investment.
It's always encouraging to see when a company's CEO believes in its future enough to invest his or her own money into it. That's exactly what Patrick Gelsinger did when he bought shares of Intel in August. His investment totaling just over half a million dollars brings his total stake in the company to a little over $7 million.
I believe that Gelsinger's story is an inspiring one that highlights the importance of education and hard work. His story also shows that it is possible to achieve success even if you don't come from a privileged background. I hope that his story will encourage more people to pursue their dreams and to never give up.
It is clear that Pat Gelsinger is a very successful and driven individual. His accomplishments speak for themselves – he has been a vice president at Intel, chief technology officer, and president of EMC. He is now the CEO of VMware. His return to Intel as CEO in 2021 shows his dedication to the company and his commitment to seeing it succeed.
I remain bullish on Intel despite being wrong so far. I believe that the company's strong fundamentals will eventually shine through, leading to higher share prices. While there is no guarantee that this will happen, I believe that it is the most likely scenario.
In my opinion, Intel shares have been punished too harshly for the company's sins. At the recent price of less than $32, their shares look extremely good to me. They sell for less than seven times earnings, in a market where the average multiple is about 24. I believe that Intel's share price will rebound in the near future as investors realize that the company is still a leader in the semiconductor industry.
It's no secret that the pandemic has had a profound impact on the global economy. One of the most notable impacts has been on the sales of personal computers. As more and more people have been working from home, the demand for PCs has declined. This is in contrast to the sales of mobile devices, which have been increasing. The pandemic has forced many companies to re-evaluate their spending. With offices half-empty, there is less of a need to buy new PCs.
Investors are underestimating Intel's strengths, I believe. It is the world's largest manufacturer of logic chips (microprocessors). It has posted a profit in each of the past 30 years – yes, even including recession-scarred 2008 and 2020. I believe that Intel is a company with great long-term potential that is currently undervalued by the market.
For investors who are looking for companies that offer high dividend yields, this company should be appealing. With a dividend yield of 4.5%, and a history of increasing dividends in 14 of the past 15 years, this company is a good option for income-seeking investors.
Fox
Looking at the recent insider activity at Fox, it seems that CEO Lachlan Murdoch is bullish on the company's future. With a $26 million stake in the company, Murdoch is clearly betting on Fox's success in the years to come. This is good news for shareholders, as it suggests that the company's leadership is confident in its prospects.
As the son of Rupert Murdoch, Lachlan is poised to take over the family's media empire. With a stake in Fox and News Corp, Lachlan is poised to become one of the most powerful media moguls in the world.
I don't like the political slant of Fox News, but I think the stock is a good buy. It's currently selling for 16 times recent earnings and nine times the earnings analysts expect in the fiscal year that started in July. I think the stock is undervalued and is a good long-term investment.
As a news organization, Fox News is in a unique position to take advantage of live events and breaking news to keep viewers engaged. By focusing on these areas, Fox can partially sidestep the issue of viewers fast forwarding through commercials. This emphasis on live content helps to set Fox News apart from other channels and keeps viewers coming back for more.
Lachlan Murdoch's $21.7 million property sale to Amanda Peet and David Benioff is a smart move that will pay off in the long run. The value of his stock holdings in Fox is currently above the sale price, meaning he stands to make a profit if he decides to sell in the future. This savvy investment underscores Lachlan's reputation as a shrewd businessman.
Looking at Fox's past and current performance, it is evident that the company is doing well and is expected to continue growing in the future. This is good news for shareholders and prospective investors, as Fox is a company with a lot of potential.
The Record: A Newspaper Committed to Truth
This is the 63rd column I've written about insider buys and sells, and I'm able to tabulate one-year results for 53 of them. From 1999 to September 2021, I compiled data on insider buying and selling activity, and the results are generally positive.
A year ago, I recommended two stocks - Terminex Global Holdings (TMX) and Westlake Chemical. While TMX gained a modest 2.5%, Westlake saw much more significant growth, returning 16.7%. In comparison, the Standard & Poor's 500 Total Return Index has declined 7.6% over the same period. I also noted insider selling at Trade Desk (TTD), which is down 6.1% since I mentioned it.
I have been providing recommendations to investors based on insider buying and selling activity for over 20 years, and my track record speaks for itself. On average, my picks have outperformed the S&P 500 by two percentage points per year, while the stocks where I noted insider selling have lagged the index by 1.4 percentage points.
There is a clear discrepancy between the stocks that I said to avoid and the stocks where I noted buying. The former have trailed the index by 24 percentage points, while the latter have beaten the index by 19 percentage points. This difference is significant and something that investors should take into account when making decisions.
It's important to remember that my column results are hypothetical and shouldn't be confused with actual results I obtain for clients. Additionally, past performance is not indicative of future results.
I own Intel shares personally and for some clients, and I believe that the company is well-positioned for continued success in the future. I believe that Intel's technology is among the best in the world, and that its products will continue to be in high demand.
