Advanced Micro Devices (NASDAQ:AMD) Shares Gap Down on Analyst Downgrade

Key Points

• Advanced Micro Devices (AMD) shares experienced a significant drop after Seaport Res Ptn downgraded the stock from a strong-buy to a hold rating, opening at $157.12 from a previous close of $161.79.
• Multiple analysts have given varying ratings and price target adjustments for AMD, with the consensus rating classified as "Moderate Buy" and a price target of $181.33.
• Insider selling has been notable, with CEO Lisa T. Su selling 225,000 shares at an average price of $163.97, marking a decrease in ownership of about 6.28%.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) gapped down prior to trading on Friday after Seaport Res Ptn downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $161.79, but opened at $157.12. Advanced Micro Devices shares last traded at $151.71, with a volume of 18,810,058 shares trading hands.

Several other equities analysts also recently commented on the stock. Wedbush reiterated a "cautious" rating on shares of Advanced Micro Devices in a report on Saturday, August 9th. JPMorgan Chase & Co. raised their price target on shares of Advanced Micro Devices from $120.00 to $180.00 and gave the stock a "neutral" rating in a report on Wednesday, August 6th. Susquehanna upped their price target on shares of Advanced Micro Devices from $135.00 to $210.00 and gave the company a "positive" rating in a report on Wednesday, July 30th. Robert W. Baird cut their price objective on shares of Advanced Micro Devices from $175.00 to $140.00 and set an "outperform" rating for the company in a report on Wednesday, May 7th. Finally, Morgan Stanley decreased their price target on shares of Advanced Micro Devices from $185.00 to $168.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $181.33.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 225,000 shares of the company's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $163.97, for a total value of $36,893,250.00. Following the sale, the chief executive officer owned 3,359,748 shares of the company's stock, valued at $550,897,879.56. This represents a 6.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the completion of the sale, the executive vice president directly owned 125,505 shares in the company, valued at $21,738,721.05. This trade represents a 7.38% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 252,998 shares of company stock valued at $41,415,580 over the last quarter. Corporate insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. SevenBridge Financial Group LLC lifted its position in shares of Advanced Micro Devices by 9.8% in the 2nd quarter. SevenBridge Financial Group LLC now owns 6,214 shares of the semiconductor manufacturer's stock worth $882,000 after buying an additional 557 shares during the last quarter. American Trust bought a new stake in Advanced Micro Devices during the 2nd quarter worth about $233,000. FSC Wealth Advisors LLC grew its position in shares of Advanced Micro Devices by 18.8% in the 2nd quarter. FSC Wealth Advisors LLC now owns 949 shares of the semiconductor manufacturer's stock valued at $135,000 after purchasing an additional 150 shares during the period. Evolution Wealth Management Inc. bought a new stake in shares of Advanced Micro Devices during the 2nd quarter worth approximately $34,000. Finally, Total Investment Management Inc. acquired a new stake in shares of Advanced Micro Devices during the 2nd quarter worth $85,000. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Trading Down 6.8%

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 company has a market capitalization of $244.74 billion, a price-to-earnings ratio of 86.61, a price-to-earnings-growth ratio of 1.90 and a beta of 1.92. The firm has a fifty day moving average price of $161.22 and a 200-day moving average price of $125.29.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued 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). The business had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%.The company's revenue for the quarter was up 31.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.69 earnings per share. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, equities analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

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

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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