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Intel Insiders Are NOT Selling, They Are Buying!

|About: Intel Corporation (INTC)

I have been reading and benefiting from the many Seeking Alpha contributors for some time. I sometime disagree with an author's conclusion but usually benefit from his/her argument. A recent article about Intel (NASDAQ:INTC) claimed that Insiders Are Selling Intel . While the author's facts were accurate, they were incomplete and therefore, very misleading. Even here, I benefited from the author's misleading claim because I made the effort to check the facts.

The author starts with a table showing 920,467 shares had been sold from October 25 through Nov 1 of this year. While there were no stock purchases during this period, there were numerous options exercised. The complete table of insider activity for the period should be: (data includes the additional 2 weeks in November now recorded)

Name (Title)

Shares Exercised

Shares Sold

Share Increase

Bryant Andy D (Chairman)

708,010

693,630

14,380

Holt William M (Exec VP GM, Tech & Mfg Grp)

34,090

28,310

5,780

James Renee Jo (President)

25,219

10,917

14,302

Kilroy Thomas M (Exec VP, GM Sales & Mktg Grp)

60,564

52,600

7,964

Krzanich Brian M (NYSE:CEO)

15,310

0

15,310

Melamed Arthur Douglas (Sr VP, General Counsel)

10,951

0

10,951

Perlmutter David (EXEC VP; GM IAG; CPO)

14,380

0

14,380

Smith Stacy J (Exec VP, Dir Corp Stratgy, CFO)

14,380

0

14,380

Sodhani Arvind (EXEC. VP; PRES. INTEL CAPITAL)

190,486

184,231

6,255

 

1,073,390

969,688

103,702

By summarizing the data for all of 2013, I find that 17 insiders exercised options for 4,734,044 shares and sold 3,285,902 shares, increasing their ownership by 1,448,142 shares. This increase represents an increase of 11.2% of the 12,861,879 shares beneficially owned by the officers and directors as listed in the latest company proxy.

Data like this can be easier to grasp through a chart, so I amalgamated the data going back to 2006. Net increase in company shares looks like this:

Over the first two years of this period, Intel insiders sold over a million (1,348,600) shares more than they purchased through option exercises. There were no outright buys reported. Since then however, Intel insiders retained nearly four million (3,947,737) shares over option exercises. The net purchases represented an increase of nearly over 30% of the shares controlled by officers and directors.

This suggests to me that the group has some confidence in the company's prospects for success. I share their confidence.

Disclosure: I am long INTC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.