Advanced Micro Devices (NASDAQ:AMD) Hits New 1-Year High - Here's Why

Key Points

• Advanced Micro Devices (AMD) shares hit a new 1-year high of $174.47 during mid-day trading, marking a significant increase from the previous close of $166.47.
• Multiple research analysts have raised their target prices for AMD, with Wells Fargo increasing it from $120.00 to $185.00, reflecting a growing positive outlook for the company.
• AMD announced a stock buyback plan allowing for the repurchase of up to $6 billion in shares, indicating management's belief that the stock is undervalued.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $174.47 and last traded at $173.95, with a volume of 26502417 shares changing hands. The stock had previously closed at $166.47.

Wall Street Analyst Weigh In

AMD has been the topic of a number of research analyst reports. Wells Fargo & Company upped their target price on shares of Advanced Micro Devices from $120.00 to $185.00 and gave the company an "overweight" rating in a report on Wednesday, July 16th. Hsbc Global Res raised shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. Sanford C. Bernstein upped their target price on shares of Advanced Micro Devices from $95.00 to $140.00 and gave the company a "market perform" rating in a report on Monday, July 21st. The Goldman Sachs Group raised shares of Advanced Micro Devices to a "hold" rating and set a $140.00 target price on the stock in a report on Thursday, July 10th. Finally, Evercore ISI set a $144.00 price target on shares of Advanced Micro Devices and gave the company an "outperform" rating in a research note on Friday, June 13th. Eleven investment analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and five have given a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $154.68.

Advanced Micro Devices Stock Performance

The firm has a market cap of $279.93 billion, a P/E ratio of 127.03, a P/E/G ratio of 2.20 and a beta of 2.05. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.97 and a current ratio of 2.80. The company's 50 day moving average is $132.24 and its 200 day moving average is $114.41.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings data on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 EPS for the quarter, beating the consensus estimate of $0.93 by $0.03. The business had revenue of $7.44 billion during the quarter, compared to the consensus estimate of $7.10 billion. Advanced Micro Devices had a net margin of 8.03% and a return on equity of 8.30%. The firm's revenue was up 35.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.62 EPS. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices declared that its board has initiated a stock buyback plan on Wednesday, May 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to reacquire up to 3.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Insider Activity

In related news, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices stock in a transaction on 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 completion of the transaction, the executive vice president owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. This trade represents a 1.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds have recently bought and sold shares of the company. Toronto Dominion Bank increased its stake in 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 in the last quarter. Nicolet Bankshares Inc. increased its stake in Advanced Micro Devices by 56.4% in the fourth quarter. Nicolet Bankshares Inc. now owns 3,523 shares of the semiconductor manufacturer's stock valued at $426,000 after purchasing an additional 1,271 shares in the last quarter. Bank Pictet & Cie Europe AG increased its stake in Advanced Micro Devices by 12.7% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock valued at $31,958,000 after purchasing an additional 29,825 shares in the last quarter. Heritage Trust Co bought a new stake in Advanced Micro Devices in the fourth quarter valued at $804,000. Finally, Centric Wealth Management increased its stake in Advanced Micro Devices by 20.6% in the fourth quarter. Centric Wealth Management now owns 14,567 shares of the semiconductor manufacturer's stock valued at $1,760,000 after purchasing an additional 2,487 shares in the last quarter. Institutional investors 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.

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