Advanced Micro Devices (NASDAQ:AMD) Stock Price Expected to Rise, Truist Financial Analyst Says

Key Points

• Truist Financial raised its price target for Advanced Micro Devices (AMD) from $111.00 to $173.00, maintaining a "hold" rating for the stock.
• Despite a significant boost in price targets by several analysts, AMD stock has experienced a 1.4% decline recently, with an opening price of $174.31 on Wednesday.
• The semiconductor manufacturer reported $0.48 earnings per share in its latest earnings release, falling short of analyst expectations, while revenue was $7.69 billion, exceeding forecasts.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its target price upped by investment analysts at Truist Financial from $111.00 to $173.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a "hold" rating on the semiconductor manufacturer's stock. Truist Financial's price objective would indicate a potential upside of 6.06% from the company's current price.

AMD has been the subject of several other reports. Cantor Fitzgerald reiterated an "overweight" rating on shares of Advanced Micro Devices in a research note on Monday, June 9th. Rosenblatt Securities reissued a "buy" rating and set a $200.00 price objective on shares of Advanced Micro Devices in a research report on Friday, June 13th. Evercore ISI set a $144.00 target price on shares of Advanced Micro Devices and gave the stock an "outperform" rating in a report on Friday, June 13th. Robert W. Baird dropped their target price on shares of Advanced Micro Devices from $175.00 to $140.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 7th. Finally, Erste Group Bank raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Wednesday, July 23rd. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating, twenty-three have given a buy rating and four have assigned a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $178.09.

Advanced Micro Devices Stock Down 6.4%

NASDAQ AMD traded down $11.19 during mid-day trading on Wednesday, hitting $163.12. The company's stock had a trading volume of 132,642,918 shares, compared to its average volume of 60,340,328. The firm has a market capitalization of $264.48 billion, a price-to-earnings ratio of 93.75, a PEG ratio of 2.31 and a beta of 1.94. The company's 50 day simple moving average is $142.11 and its 200 day simple moving average is $117.55. The company has a current ratio of 2.80, a quick ratio of 1.97 and a debt-to-equity ratio of 0.06. Advanced Micro Devices has a twelve month low of $76.48 and a twelve month high of $182.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.06). The firm had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.61%. The business's quarterly revenue was up 31.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.69 earnings per share. Analysts anticipate that Advanced Micro Devices will post 3.87 earnings per share for the current year.

Advanced Micro Devices declared that its Board of Directors has authorized a share buyback program on Wednesday, May 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. This trade represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.06% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Institutional investors have recently made changes to their positions in the stock. Kingstone Capital Partners Texas LLC purchased a new stake in Advanced Micro Devices in the 2nd quarter worth about $958,422,000. Goldman Sachs Group Inc. increased its stake in shares of Advanced Micro Devices by 169.7% in the first quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock worth $1,012,538,000 after purchasing an additional 6,200,850 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Advanced Micro Devices by 131.5% in the first quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock worth $1,069,846,000 after purchasing an additional 5,915,185 shares in the last quarter. Toronto Dominion Bank raised its position in shares of Advanced Micro Devices by 443.3% in the fourth quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock valued at $660,475,000 after purchasing an additional 4,461,609 shares during the period. Finally, Nuveen LLC purchased a new stake in shares of Advanced Micro Devices during the 1st quarter valued at approximately $436,746,000. Institutional investors and hedge funds own 71.34% of the company's stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.