JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
JERUSALEM - Intel’s subsidiary announced Tuesday it will sell 45 million shares of Mobileye Global Inc. (NASDAQ:MBLY) in an underwritten secondary public offering, with an option for underwriters to purchase an additional 6.75 million shares. The autonomous driving technology company, currently valued at approximately $15 billion, has maintained a strong financial position with InvestingPro data showing more cash than debt on its balance sheet and a healthy current ratio of 7.64x.
Intel Overseas Funding Corporation, a wholly owned subsidiary of Intel Corporation (NASDAQ:INTC), is conducting the offering while Mobileye itself will not sell any shares or receive proceeds from the transaction. According to InvestingPro analysis, while Mobileye’s stock has seen a -33.82% return over the past year, analysts are optimistic about its future profitability, with earnings forecasts turning positive for this fiscal year.
As part of the arrangement, Mobileye has agreed to repurchase $100 million of its Class A common stock from Intel’s subsidiary at the same price paid by underwriters in the offering. This repurchase was approved by Mobileye’s disinterested directors not affiliated with the selling stockholder.
Additionally, Intel’s subsidiary plans to convert 50 million shares of Mobileye’s Class B common stock into Class A common stock, contingent on the offering’s completion. The subsidiary has indicated it intends to hold these converted shares rather than sell them. Investors tracking this development should note that Mobileye’s next earnings report is scheduled for July 24, with InvestingPro offering comprehensive analysis and additional insights through its Pro Research Report, available for over 1,400 US stocks.
Goldman Sachs & Co. LLC and BofA Securities, Inc. are serving as joint lead book-running managers for the offering.
Mobileye, which develops autonomous driving and driver-assistance technologies, was listed independently from Intel in 2022, though Intel maintains majority ownership. The company’s EyeQ technology has been integrated into more than 200 million vehicles worldwide through 2024, according to the press release statement.
The offering is subject to market conditions and regulatory approvals. A registration statement has been filed with the Securities and Exchange Commission, and a preliminary prospectus supplement will be available on the SEC’s website. Despite recent market volatility, Mobileye maintains a solid gross profit margin of 48.25% and shows promising operational metrics according to its Financial Health Score of FAIR from InvestingPro analysis.
In other recent news, Mobileye N.V. reported its first-quarter earnings with a revenue of $438 million, slightly surpassing the consensus estimate of $434 million. The company also confirmed its revenue guidance for fiscal year 2025 at $1.75 billion, aligning closely with the consensus projection of $1.74 billion. However, analysts have expressed caution regarding Mobileye’s near-term prospects. Mizuho Securities adjusted its price target for Mobileye to $15, citing potential headwinds from tariffs and demand uncertainties that could impact the company’s outlook for the latter half of 2025. Similarly, Barclays downgraded its rating on Mobileye from Overweight to Equalweight, reducing the price target to $14 due to limited catalyst paths and intensified competition. The competition in the advanced driver-assistance systems market has grown, with companies like Waymo and Tesla posing challenges. Despite these concerns, Mobileye is progressing with partnerships for its EyeQ chip technology and SuperVision technology, although some revenue contributions from these initiatives are expected to ramp up in 2026. The company’s ongoing collaborations include projects with major automotive manufacturers such as Volkswagen Group, Uber, and Lyft.
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