Advanced Micro Devices (NASDAQ:AMD) Shares Up 2.4% - Time to Buy?

Key Points

• Advanced Micro Devices shares rose 2.4%, with a last trading price of $175.78, despite a significant decrease in trading volume.
• Analysts have mixed views on AMD, with price targets ranging from $144.00 to $200.00, and a consensus rating of "Moderate Buy."
• The company also authorized a $6.00 billion stock buyback plan, which signals confidence in its stock value among the board.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 2.4% on Monday . The stock traded as high as $177.47 and last traded at $175.78. 21,219,232 shares were traded during trading, a decline of 52% from the average session volume of 44,525,527 shares. The stock had previously closed at $171.70.

Analysts Set New Price Targets

Several research firms have recently weighed in on AMD. DZ Bank cut Advanced Micro Devices from a "buy" rating to a "sell" rating and set a $150.00 price target on the stock. in a report on Wednesday, July 30th. Mizuho increased their price target on Advanced Micro Devices from $152.00 to $175.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. Bank of America increased their price target on Advanced Micro Devices from $175.00 to $200.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Evercore ISI set a $144.00 target price on Advanced Micro Devices and gave the stock an "outperform" rating in a report on Friday, June 13th. Finally, Stifel Nicolaus reaffirmed a "buy" rating and issued a $132.00 target price on shares of Advanced Micro Devices in a report on Friday, June 13th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating, twenty-three have given a buy rating and four have assigned a strong buy rating to the stock. According to MarketBeat, Advanced Micro Devices currently has a consensus rating of "Moderate Buy" and an average target price of $162.94.

Advanced Micro Devices Trading Up 3.3%

The company has a quick ratio of 1.97, a current ratio of 2.80 and a debt-to-equity ratio of 0.06. The firm has a market cap of $287.64 billion, a P/E ratio of 130.40, a P/E/G ratio of 2.27 and a beta of 1.94. The company's 50 day simple moving average is $138.58 and its 200-day simple moving average is $116.44.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.03. The business had revenue of $7.44 billion during 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 firm's quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.62 earnings per share. As a group, research analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices announced that its board has authorized a stock buyback plan on Wednesday, May 14th that authorizes the company to buyback $6.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to buy up to 3.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices stock in a transaction that occurred 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 completion of the sale, the executive vice president owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.06% of the company's stock.

Institutional Trading of Advanced Micro Devices

Institutional investors and hedge funds have recently modified their holdings of the stock. Greenline Partners LLC purchased a new position in Advanced Micro Devices during the fourth quarter valued at approximately $28,000. Farmers & Merchants Trust Co of Chambersburg PA grew its holdings in Advanced Micro Devices by 277.8% in the first 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 grew its holdings in Advanced Micro Devices by 90.3% in the first 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. Kozak & Associates Inc. grew its holdings in Advanced Micro Devices by 67.6% in the first quarter. Kozak & Associates Inc. now owns 305 shares of the semiconductor manufacturer's stock worth $29,000 after purchasing an additional 123 shares during the last quarter. Finally, Mpwm Advisory Solutions LLC purchased a new position in Advanced Micro Devices in the fourth quarter worth $30,000. 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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