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

Key Points

• Shares of AMD gapped down, opening at $201.48 from a prior close of $215.05 and last trading around $195.95 (down about 7.3%) on heavy volume (~17.9M shares).
• Analysts remain largely bullish with a MarketBeat consensus of “Moderate Buy” and an average price target of about $278.54, with multiple firms reiterating buy/overweight ratings.
• AMD beat Q3 expectations (EPS $1.20; revenue $9.25B, up 35.6% year-over-year) but trades at a high P/E of 114.49, and insiders have sold roughly $16.1M of stock in the last three months.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $215.05, but opened at $201.48. Advanced Micro Devices shares last traded at $195.95, with a volume of 17,892,362 shares.

Analysts Set New Price Targets

AMD has been the topic of a number of research analyst reports. Piper Sandler restated an "overweight" rating and issued a $280.00 price target on shares of Advanced Micro Devices in a research note on Wednesday, November 12th. Rosenblatt Securities reiterated a "buy" rating and issued a $300.00 price objective on shares of Advanced Micro Devices in a report on Wednesday, November 12th. Jefferies Financial Group set a $300.00 target price on shares of Advanced Micro Devices and gave the stock a "positive" rating in a research note on Monday, October 6th. Seaport Res Ptn downgraded shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 4th. Finally, Cowen reissued a "buy" rating on shares of Advanced Micro Devices in a report on Wednesday, November 5th. Three analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $278.54.

Advanced Micro Devices Stock Down 7.3%

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 firm has a market cap of $324.56 billion, a price-to-earnings ratio of 114.49, a PEG ratio of 2.42 and a beta of 1.93. The firm's 50 day simple moving average is $215.59 and its two-hundred day simple moving average is $169.74.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, November 4th. The semiconductor manufacturer reported $1.20 EPS for the quarter, topping the consensus estimate of $1.17 by $0.03. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company had revenue of $9.25 billion for the quarter, compared to analysts' expectations of $8.76 billion. During the same period last year, the firm earned $0.92 earnings per share. The business's revenue for the quarter was up 35.6% on a year-over-year basis. Advanced Micro Devices has set its Q4 2025 guidance at EPS. On average, equities analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,108 shares of the company's stock in a transaction on Friday, November 14th. The stock was sold at an average price of $240.12, for a total transaction of $4,107,972.96. Following the completion of the sale, the executive vice president directly owned 1,714,505 shares in the company, valued at approximately $411,686,940.60. This represents a 0.99% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Ava Hahn sold 2,868 shares of the stock in a transaction on Monday, October 6th. The stock was sold at an average price of $226.01, for a total value of $648,196.68. Following the sale, the senior vice president directly owned 9,033 shares in the company, valued at approximately $2,041,548.33. This trade represents a 24.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 75,676 shares of company stock valued at $16,124,589 in the last three months. Corporate insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds and other institutional investors have recently made changes to their positions in AMD. HHM Wealth Advisors LLC boosted its stake in shares of Advanced Micro Devices by 2.4% during the 3rd quarter. HHM Wealth Advisors LLC now owns 1,742 shares of the semiconductor manufacturer's stock valued at $282,000 after purchasing an additional 40 shares in the last quarter. HBK Sorce Advisory LLC lifted its holdings in Advanced Micro Devices by 0.3% in the third quarter. HBK Sorce Advisory LLC now owns 13,404 shares of the semiconductor manufacturer's stock worth $2,169,000 after buying an additional 43 shares during the period. Wilmington Savings Fund Society FSB boosted its position in Advanced Micro Devices by 0.5% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 8,706 shares of the semiconductor manufacturer's stock valued at $1,409,000 after acquiring an additional 43 shares in the last quarter. Moseley Investment Management Inc. grew its holdings in shares of Advanced Micro Devices by 0.5% during the 3rd quarter. Moseley Investment Management Inc. now owns 8,883 shares of the semiconductor manufacturer's stock worth $1,437,000 after acquiring an additional 44 shares during the period. Finally, OneAscent Family Office LLC lifted its stake in shares of Advanced Micro Devices by 2.6% in the 3rd quarter. OneAscent Family Office LLC now owns 1,755 shares of the semiconductor manufacturer's stock valued at $284,000 after purchasing an additional 44 shares during the period. 71.34% of the stock is currently 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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