Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.4% - Here's Why

Key Points

• Advanced Micro Devices (AMD) shares fell by 1.4% on Tuesday, trading as low as $172.64 and experiencing a significant decrease in volume of 47% from average session trading.
• Several analysts have recently adjusted their ratings and price targets for AMD, with a current consensus rating of "Moderate Buy" and a price target averaging $162.94.
• The company announced a stock repurchase program authorizing up to $6 billion in buybacks, indicating a belief that its shares are undervalued.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) were down 1.4% during trading on Tuesday . The company traded as low as $172.64 and last traded at $174.23. 23,774,224 shares changed hands during trading, a decline of 47% from the average daily volume of 44,584,629 shares. The stock had previously closed at $176.78.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on AMD. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $200.00 price objective on shares of Advanced Micro Devices in a report on Wednesday. UBS Group upped their target price on Advanced Micro Devices from $150.00 to $210.00 and gave the stock a "buy" rating in a report on Monday, July 28th. Wells Fargo & Company increased their price objective on Advanced Micro Devices from $120.00 to $185.00 and gave the company an "overweight" rating in a report on Wednesday, July 16th. Jefferies Financial Group lifted their target price on shares of Advanced Micro Devices from $100.00 to $160.00 in a research note on Wednesday, July 16th. Finally, Melius upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 target price on the stock in a research report on Monday, June 23rd. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating, twenty-three have issued a buy rating and four have given a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $175.77.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.97 and a current ratio of 2.80. The stock has a market cap of $263.88 billion, a PE ratio of 119.64, a price-to-earnings-growth ratio of 2.34 and a beta of 1.94. The firm has a fifty day moving average price of $141.11 and a 200 day moving average price of $117.23.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.06). Advanced Micro Devices had a return on equity of 8.30% and a net margin of 8.03%. The company had revenue of $7.69 billion during the quarter, compared to analysts' expectations of $7.41 billion. During the same quarter in the prior year, the company posted $0.69 EPS. The company's revenue for the quarter was up 31.7% on a year-over-year basis. Research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

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

Insider Buying and Selling

In other news, EVP Mark D. Papermaster sold 17,998 shares of the business's 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 in the company, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.06% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AMD. Brighton Jones LLC raised its position in Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock valued at $5,551,000 after purchasing an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Advanced Micro Devices by 2.9% in the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock valued at $1,001,000 after buying an additional 234 shares during the last quarter. Bank Pictet & Cie Europe AG boosted its stake in shares of Advanced Micro Devices by 12.7% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock worth $31,958,000 after buying an additional 29,825 shares during the period. Grantham Mayo Van Otterloo & Co. LLC boosted its stake in shares of Advanced Micro Devices by 15.3% during the fourth quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 8,894 shares of the semiconductor manufacturer's stock worth $1,074,000 after buying an additional 1,181 shares during the period. Finally, Aster Capital Management DIFC Ltd grew its holdings in shares of Advanced Micro Devices by 2,744.4% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 768 shares of the semiconductor manufacturer's stock worth $93,000 after buying an additional 741 shares during the last quarter. Hedge funds and other 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.