Advanced Micro Devices (NASDAQ:AMD) Shares Down 2.8% - What's Next?

Key Points

• Advanced Micro Devices (AMD) shares are down by 2.8%, trading around $171.30, after closing at $176.31, with a significant drop in trading volume of 24% from the average session.
• Analysts have mixed views on AMD with price targets ranging from $120.00 to $200.00, indicating a generally positive outlook but with some cautious adjustments.
• The company recently reported $0.96 earnings per share for the quarter, beating estimates and showing a 35.9% year-over-year revenue increase to $7.44 billion.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) traded down 2.8% on Friday . The company traded as low as $166.82 and last traded at $171.30. 33,636,844 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 44,409,547 shares. The stock had previously closed at $176.31.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the stock. Raymond James Financial reaffirmed an "outperform" rating and issued a $120.00 price target (down from $150.00) on shares of Advanced Micro Devices in a research note on Wednesday, May 7th. Bank of America upped their price target on shares of Advanced Micro Devices from $175.00 to $200.00 and gave the stock a "buy" rating in a research note on Tuesday. Barclays upped their price target on shares of Advanced Micro Devices from $110.00 to $130.00 and gave the stock an "overweight" rating in a research note on Friday, May 16th. Stifel Nicolaus reaffirmed a "buy" rating and issued a $132.00 price target on shares of Advanced Micro Devices in a research note on Friday, June 13th. Finally, Robert W. Baird dropped their price target 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. One research analyst has rated the stock with a sell rating, ten have given a hold rating, twenty-three have issued a buy rating and four have issued a strong buy rating to the company's stock. According to MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $162.94.

Advanced Micro Devices Trading Down 2.6%

The company has a debt-to-equity ratio of 0.06, a current ratio of 2.80 and a quick ratio of 1.97. The company's 50 day moving average is $137.35 and its two-hundred day moving average is $116.10. The firm has a market cap of $278.58 billion, a P/E ratio of 125.94, a PEG ratio of 2.37 and a beta of 2.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.03. Advanced Micro Devices had a net margin of 8.03% and a return on equity of 8.30%. The business had revenue of $7.44 billion during the quarter, compared to analysts' expectations of $7.10 billion. During the same quarter last year, the company earned $0.62 earnings per share. The firm's revenue was up 35.9% on a year-over-year basis. On average, sell-side 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 of Directors has approved a share repurchase program on Wednesday, May 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to buy up to 3.1% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In other Advanced Micro Devices 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 completion of the transaction, the executive vice president owned 1,713,710 shares in the company, 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 document filed with the Securities & Exchange Commission, which is available at this link. 0.06% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Toronto Dominion Bank increased its holdings in shares of Advanced Micro Devices by 443.3% during the fourth quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock worth $660,475,000 after buying an additional 4,461,609 shares in the last quarter. Nicolet Bankshares Inc. increased its holdings in shares of 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 holdings in shares of 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 acquired a new stake in shares of Advanced Micro Devices in the fourth quarter valued at approximately $804,000. Finally, Valicenti Advisory Services Inc. increased its holdings in shares of Advanced Micro Devices by 4.0% in the first quarter. Valicenti Advisory Services Inc. now owns 76,826 shares of the semiconductor manufacturer's stock valued at $7,893,000 after purchasing an additional 2,944 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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