Advanced Micro Devices (NASDAQ:AMD) Shares Down 2.1% - Time to Sell?

Key Points

• The stock price of Advanced Micro Devices (NASDAQ:AMD) decreased by 2.1% during mid-day trading, reaching a low of $161.72 before settling at $164.19.
• Analysts have mixed ratings on AMD, with four giving a Strong Buy rating, while others have reduced price targets significantly, showing cautious sentiment about the stock's future performance.
• The company reported earnings per share of $0.48 for the last quarter, missing consensus estimates, but saw revenue increase by 31.7% year-over-year, indicating strong demand in the semiconductor market.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price traded down 2.1% during mid-day trading on Monday . The stock traded as low as $161.72 and last traded at $164.19. 17,341,011 shares were traded during trading, a decline of 63% from the average session volume of 46,769,168 shares. The stock had previously closed at $167.76.

Analyst Ratings Changes

A number of analysts recently issued reports on AMD shares. Wedbush reissued a "cautious" rating on shares of Advanced Micro Devices in a research report on Saturday, August 9th. Loop Capital reduced their price target on Advanced Micro Devices from $175.00 to $140.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. Rosenblatt Securities restated a "buy" rating and issued a $200.00 price objective on shares of Advanced Micro Devices in a report on Friday, June 13th. Melius upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 target price for the company in a research note on Monday, June 23rd. Finally, Melius Research raised shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating and lifted their price objective for the company from $110.00 to $175.00 in a research note on Monday, June 23rd. Four research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $180.12.

Advanced Micro Devices Stock Down 2.5%

The stock has a market cap of $265.44 billion, a price-to-earnings ratio of 94.17, a PEG ratio of 1.98 and a beta of 1.94. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49. The firm's 50-day simple moving average is $155.48 and its two-hundred day simple moving average is $122.16.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing analysts' consensus estimates 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 firm had revenue of $7.69 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same quarter in the previous year, the firm earned $0.69 EPS. The company's revenue was up 31.7% compared to the same quarter last year. Advanced Micro Devices has set its Q3 2025 guidance at EPS. On average, sell-side analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

Advanced Micro Devices declared that its Board of Directors has authorized a share repurchase 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 shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 10,000 shares of the business's stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total value of $1,732,100.00. Following the sale, the executive vice president directly owned 125,505 shares of the company's stock, valued at approximately $21,738,721.05. The trade was a 7.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Mark D. Papermaster sold 17,998 shares of the company'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 transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. This represents 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 currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AMD. Pinney & Scofield Inc. grew its stake in shares of Advanced Micro Devices by 81.0% in the second quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer's stock valued at $27,000 after buying an additional 85 shares in the last quarter. Greenline Partners LLC bought a new position in shares of Advanced Micro Devices in the 4th quarter valued at about $28,000. Farmers & Merchants Trust Co of Chambersburg PA increased its stake in shares of Advanced Micro Devices by 277.8% during the 1st quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock worth $28,000 after purchasing an additional 200 shares during the last quarter. American Capital Advisory LLC increased its stake in shares of Advanced Micro Devices by 90.3% during the 1st quarter. American Capital Advisory LLC now owns 274 shares of the semiconductor manufacturer's stock worth $28,000 after purchasing an additional 130 shares during the last quarter. Finally, Kozak & Associates Inc. lifted its stake 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 purchasing an additional 123 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors.

About Advanced Micro Devices

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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