The Philadelphia Semiconductor Index is up 23.4% this year. That is an astounding performance that is even more astounding when one considers that Intel (INTC 36.26) -- one of its largest components -- is unchanged for the year.
Intel's underperformance has been related to increased competition and growth concerns for the industry leader, which continues to derive more than 50% of its total revenue from its PC-centric Client Computing Group. There was some news released after Wednesday's close, however, that might leave investors feeling a little better today about Intel's growth prospects.
Specifically, it was reported that Intel's CFO, Robert Swan, made a direct purchase of 13,888 shares in two separate transactions, with each taking place on June 5.
That disclosure was made in a Form 4 filing with the SEC. The purchases were made pursuant to instructions adopted by Mr. Swan on May 3, 2017, and which were intended to comply with Rule 10b5-1 (c).
The first block of stock bought included 6,944 shares at a weighted average sales price of $36.3052 while the second block of stock bought included 6,944 shares at a weighted average sales price of $36.3048. Following these purchases, Mr. Swan directly owns 15,718 shares of INTC common stock. He also owns another 3,364 shares indirectly through a family trust.
Although Intel's stock is unchanged in 2017, it would be remiss not to add that it is still trading in close proximity to the best levels it has seen since 2000. Accordingly, it can be construed that Mr. Swan is "buying high" so to speak as opposed to "buying low."
The latter understanding could prove to be reassuring considering the CFO is believed to have the best sense of a company's financial prospects.
Shares of INTC are flat in pre-market trading.