NEW YORK (TheStreet) -- Shares of Intel (INTC) - Get Intel Corporation (INTC) Report sold off slightly, down 0.84% to $31.73 in early afternoon trading Monday after the stock spiked on Friday amid reports that the tech giant was in talks to buy Altera (ALTR) - Get Altair Engineering Inc. Class A Report.
The potential deal for the programmable logic device manufacturer would be Intel's largest takeover, according to the Wall Street Journal. Terms of the possible deal and its timing are unclear.
Altera had a market capitalization of $10.4 billion as of Friday afternoon, which makes it much larger than Intel's previous acquisitions. The tech giant's last acquisition was broadband access and home networking technologies company Lantiq in February.
More than 30 million shares of Intel had changed hands by 12:15 p.m., compared to the daily average volume of 32,585,300.
Separately, TheStreet Ratings team rates INTEL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEL CORP (INTC) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 39.5% when compared to the same quarter one year prior, rising from $2,625.00 million to $3,661.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.6%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- INTC's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, INTEL CORP's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: INTC Ratings Report