While you were waiting on layoff packages
Intel CEO Pat Gelsinger recently has been buying up shares of the chip giant that he helms, but he has spent far more for shares of recently spun-off Mobileye , which is developing autonomous driving technologies.
Gelsinger paid $2.5 million on Oct. 28 for 120,000 Mobileye (ticker: MBLY) shares at the IPO price of $21 each, according to a filing with the Securities and Exchange Commission. Gelsinger serves as Mobileye’s chairman. He also paid a tenth of that, $250,000, on Oct. 31 for 8,830 Intel shares (INTC), an average price of $28.16 each. Gelsinger now owns 96,049 Intel shares directly, and another 266,530 shares through trusts.
Intel and Mobileye did not make Gelsinger available for comment on his stock purchases.
Gelsinger, who has served as Intel’s CEO since February 2021, most recently purchased Intel stock on the open market a few months ago, at a higher price point. In August, he paid about $500,000 for 14,800 shares, an average price of $33.86 each.
On Oct. 28, Intel reported a lackluster third quarter and disappointing guidance. The company also said it planned significant cost cuts, including a “meaningful number” of layoffs. KeyBanc Capital Markets analyst John Vinh wrote that the “cost initiatives appear to be driven by the broader deteriorating macro environment and a more pragmatic approach to retool its foundry business to be more competitive.” He rates Intel stock at Sector Weight, and added that he’s “skeptical of Intel’s chances of turning things around in integrated device manufacturing and being able to succeed as a service foundry.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.