Advanced Micro Devices (NASDAQ:AMD) Given New $185.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has raised its price target for Advanced Micro Devices (AMD) from $121.00 to $185.00, signaling a potential upside of 4.26% from the previous closing price.
• Despite the optimistic target from Morgan Stanley, several other analysts have downgraded their ratings and price targets for AMD, with a consensus rating of "Moderate Buy" and a target price of $162.94.
• AMD recently announced a stock repurchase program worth $6.00 billion, indicating confidence from the company's board regarding its stock valuation.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its target price hoisted by equities researchers at Morgan Stanley from $121.00 to $185.00 in a research report issued on Wednesday, MarketBeat reports. The firm presently has an "equal weight" rating on the semiconductor manufacturer's stock. Morgan Stanley's price objective indicates a potential upside of 7.75% from the stock's current price.

Several other analysts also recently issued reports on AMD. DZ Bank downgraded Advanced Micro Devices from a "buy" rating to a "sell" rating and set a $150.00 price target for the company. in a research note on Wednesday. The Goldman Sachs Group raised Advanced Micro Devices to a "hold" rating and set a $140.00 price objective for the company in a research note on Thursday, July 10th. TD Cowen raised their target price on Advanced Micro Devices from $110.00 to $115.00 and gave the stock a "buy" rating in a research report on Wednesday, May 7th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Advanced Micro Devices in a research note on Monday, June 9th. Finally, Dbs Bank lowered Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, twenty-three have assigned a buy rating and four have issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $162.94.

Advanced Micro Devices Price Performance

NASDAQ:AMD opened at $171.70 on Wednesday. The company's 50-day moving average is $138.58 and its two-hundred day moving average is $116.48. 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 12-month low of $76.48 and a 12-month high of $182.50. The firm has a market cap of $278.39 billion, a price-to-earnings ratio of 126.25, a price-to-earnings-growth ratio of 2.33 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share for the quarter, topping analysts' consensus estimates 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 business's quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.62 earnings per share. Research analysts expect that Advanced Micro Devices will post 3.87 EPS for the current year.

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

Insider Activity at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 17,998 shares of the business's 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 transaction, the executive vice president owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.06% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Dogwood Wealth Management LLC lifted its holdings in Advanced Micro Devices by 2,311.1% during the 2nd quarter. Dogwood Wealth Management LLC now owns 217 shares of the semiconductor manufacturer's stock valued at $30,000 after purchasing an additional 208 shares during the last quarter. Avion Wealth lifted its holdings in Advanced Micro Devices by 49.3% during the 2nd quarter. Avion Wealth now owns 218 shares of the semiconductor manufacturer's stock valued at $30,000 after purchasing an additional 72 shares during the last quarter. West Branch Capital LLC lifted its holdings in Advanced Micro Devices by 3,057.1% during the 2nd quarter. West Branch Capital LLC now owns 221 shares of the semiconductor manufacturer's stock valued at $31,000 after purchasing an additional 214 shares during the last quarter. Greenline Partners LLC acquired a new stake in Advanced Micro Devices during the 4th quarter valued at $28,000. Finally, Mpwm Advisory Solutions LLC acquired a new stake in Advanced Micro Devices during the 4th quarter valued at $30,000. 71.34% of the stock is owned by institutional investors.

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.