Advanced Micro Devices (NASDAQ:AMD) Reaches New 12-Month High - Still a Buy?

Key Points

• Advanced Micro Devices (AMD) reached a new 52-week high of $185.71 during trading, closing at $185.21 with over 31 million shares traded.
• Wall Street analysts have shown strong bullish sentiment, with 22 buy ratings, four strong buy ratings, and a consensus price target of $179.21 among several research reports.
• AMD reported a quarterly revenue of $7.69 billion, exceeding analysts' expectations and indicating a strong 31.7% year-over-year growth despite missing EPS estimates.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $185.71 and last traded at $185.21, with a volume of 31571483 shares trading hands. The stock had previously closed at $174.95.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AMD shares. Seaport Res Ptn raised shares of Advanced Micro Devices to a "strong-buy" rating in a research report on Wednesday, April 30th. Wedbush restated a "cautious" rating on shares of Advanced Micro Devices in a research note on Saturday. Barclays raised their price objective on shares of Advanced Micro Devices from $130.00 to $200.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Roth Capital set a $150.00 price objective on shares of Advanced Micro Devices and gave the company a "buy" rating in a research note on Friday, June 13th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Advanced Micro Devices from $120.00 to $180.00 and gave the company a "neutral" rating in a research note on Wednesday, August 6th. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating, twenty-two have given a buy rating and four have given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $179.21.

Advanced Micro Devices Stock Up 5.3%

The company has a current ratio of 2.49, a quick ratio of 1.81 and a debt-to-equity ratio of 0.05. The business has a fifty day simple moving average of $146.86 and a two-hundred day simple moving average of $118.91. The company has a market cap of $298.94 billion, a PE ratio of 105.88, a price-to-earnings-growth ratio of 1.99 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.06). Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%. The company had revenue of $7.69 billion for the quarter, compared to analysts' expectations of $7.41 billion. During the same quarter in the prior year, the firm earned $0.69 EPS. The firm's revenue was up 31.7% on a year-over-year basis. As a group, equities research analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Advanced Micro Devices declared that its board has approved a stock repurchase program on Wednesday, May 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to buy up to 3.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Paul Darren Grasby sold 10,000 shares of Advanced Micro Devices stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the transaction, the executive vice president owned 125,505 shares in the company, valued at $21,738,721.05. The trade was a 7.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $155.03, for a total value of $2,790,229.94. Following the sale, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.06% of the stock is owned by insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds and other institutional investors have recently modified their holdings of the business. Pinney & Scofield Inc. increased its position in shares of Advanced Micro Devices by 81.0% during the 2nd quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer's stock worth $27,000 after purchasing an additional 85 shares during the last quarter. Greenline Partners LLC acquired a new position in Advanced Micro Devices in the 4th quarter valued at about $28,000. Farmers & Merchants Trust Co of Chambersburg PA grew its position in Advanced Micro Devices by 277.8% in the 1st quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock valued at $28,000 after acquiring an additional 200 shares in the last quarter. American Capital Advisory LLC grew its position in Advanced Micro Devices by 90.3% in the 1st quarter. American Capital Advisory LLC now owns 274 shares of the semiconductor manufacturer's stock valued at $28,000 after acquiring an additional 130 shares in the last quarter. Finally, Kozak & Associates Inc. grew its position in Advanced Micro Devices by 67.6% in the 1st quarter. Kozak & Associates Inc. now owns 305 shares of the semiconductor manufacturer's stock valued at $29,000 after acquiring an additional 123 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

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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