Advanced Micro Devices (NASDAQ:AMD) Shares Gap Up - Here's Why

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $146.24, but opened at $153.75. Advanced Micro Devices shares last traded at $156.19, with a volume of 38,089,426 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on AMD shares. 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 report on Wednesday, May 7th. Dbs Bank downgraded Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 8th. Sanford C. Bernstein reiterated a "reduce" rating on shares of Advanced Micro Devices in a report on Tuesday, July 1st. Hsbc Global Res raised Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 10th. Finally, Mizuho raised their target price on Advanced Micro Devices from $152.00 to $175.00 and gave the stock an "outperform" rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, twenty-three have issued a buy rating and five have assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $153.23.

Advanced Micro Devices Price Performance

The stock's fifty day moving average price is $126.58 and its two-hundred day moving average price is $113.05. The firm has a market capitalization of $254.54 billion, a price-to-earnings ratio of 115.43, a price-to-earnings-growth ratio of 2.12 and a beta of 2.05. The company has a current ratio of 2.80, a quick ratio of 1.97 and a debt-to-equity ratio of 0.06.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 EPS for the quarter, beating analysts' consensus estimates of $0.93 by $0.03. The firm had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.10 billion. Advanced Micro Devices had a net margin of 8.03% and a return on equity of 8.30%. The company's revenue was up 35.9% on a year-over-year basis. During the same period last year, the firm posted $0.62 EPS. Equities research analysts expect that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

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

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction on 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 transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. This trade represents a 1.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Dogwood Wealth Management LLC raised its position in Advanced Micro Devices by 2,311.1% during the second quarter. Dogwood Wealth Management LLC now owns 217 shares of the semiconductor manufacturer's stock worth $30,000 after acquiring an additional 208 shares during the last quarter. West Branch Capital LLC raised its position in shares of Advanced Micro Devices by 3,057.1% in the second quarter. West Branch Capital LLC now owns 221 shares of the semiconductor manufacturer's stock valued at $31,000 after buying an additional 214 shares during the last quarter. Greenline Partners LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $28,000. Mpwm Advisory Solutions LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Finally, Summit Securities Group LLC acquired a new position in shares of Advanced Micro Devices in the fourth quarter valued at approximately $31,000. 71.34% of the stock is owned by hedge funds and other institutional investors.

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.