CEO Bob Swan has backed up his upbeat assessment of his successor.
Swan bought the dip in Intel stock (ticker: INTC) after the chip giant reported fourth-quarter earnings.
Intel reported strong numbers, but shares fell more than 8% on Jan. 22, after the company said it was keeping manufacturing in-house.
Swan paid $1.51 million on Jan. 25 for a total of 27,244 Intel shares, an average price per share of $55.57, according to a form he filed with the Securities and Exchange Commission. He also earned 139,625 Intel shares that day through performance-based stock units that will fully vest and settle on Jan. 30. Swan now owns 484,943 Intel shares in a personal account, and an additional 3,364 shares through a family trust.
Intel said Swan wasn’t available for comment on his stock purchase.
Intel announced on Jan. 13 that Swan will be replaced by current
(VMW) CEO Pat Gelsinger—the onetime chief technology officer of Intel—effective on Feb. 15. Intel stock rallied on news of the CEO change.
In the press release announcing his departure, Swan said, “I am fully supportive of the board’s selection of Pat and have great confidence that, under his leadership and the rest of the management team, Intel will continue to lead the market as one of the world’s most influential technology companies.” The stock purchase has put money where his words are.
Swan is the first Intel insider to buy shares on the open market this year.
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.
Write to Ed Lin at [email protected] and follow @BarronsEdLin