Intel Offloads $1 Billion Mobileye Shares Amid Valuation Wobbles

July 15 - Intel INTC has sold a sizable portion of its stake in Mobileye MBLY, offloading 63.7 million Class A shares worth approximately $1.02 billion, according to a Friday regulatory filing. The transaction was priced at $16.05 per share.

The deal comes after Mobileye shares declined about 11% over the past week. Despite that drop, analysts have issued mixed reactions to recent developments, including the company's secondary offering and buyback plans.

Intel's ownership structure shifted after converting 113.7 million Class B shares into Class A stock, retaining 50 million Class A shares through its subsidiary, Intel Overseas Funding Corporation.

Mobileye recently priced a secondary offering of 50 million shares at $16.50, all sold by Intel's unit. The company will repurchase around 6.2 million shares directly from the seller.

Market watchers are divided. Loop Capital raised its price target to $24, citing Mobileye's long-term potential, while BofA Securities and BNP Paribas maintained neutral ratings, pointing to near-term earnings pressures.