Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 2% - What's Next?

Key Points

• Advanced Micro Devices (NASDAQ:AMD) saw its stock price drop 2% during mid-day trading, closing at $180.74 after a previous close of $184.42.
• Several analysts have raised their price targets on AMD, with Benchmark increasing it to $210.00 and HSBC upgrading their rating to "buy" with a target price of $200.00.
• The company reported $0.48 earnings per share, missing estimates, but achieved revenues of $7.69 billion, exceeding analyst expectations and up 31.7% year-over-year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price was down 2% during mid-day trading on Thursday . The company traded as low as $179.64 and last traded at $180.74. Approximately 32,586,844 shares were traded during trading, a decline of 30% from the average daily volume of 46,640,926 shares. The stock had previously closed at $184.42.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Benchmark raised their price objective on Advanced Micro Devices from $170.00 to $210.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Truist Financial boosted their target price on Advanced Micro Devices from $111.00 to $173.00 and gave the company a "hold" rating in a report on Wednesday, August 6th. HSBC raised Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $200.00 price objective on the stock in a report on Thursday, July 10th. Sanford C. Bernstein upped their price objective on Advanced Micro Devices from $95.00 to $140.00 and gave the stock a "market perform" rating in a report on Monday, July 21st. Finally, DZ Bank raised Advanced Micro Devices from a "sell" rating to a "hold" rating and set a $165.00 price objective on the stock in a report on Thursday, August 7th. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating, twenty-two have issued a buy rating and four have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and a consensus target price of $180.12.

Advanced Micro Devices Stock Down 2.1%

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 capitalization of $293.07 billion, a price-to-earnings ratio of 103.64, a PEG ratio of 2.07 and a beta of 1.94. The stock has a fifty day moving average of $148.18 and a 200-day moving average of $119.36.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.06). The business had revenue of $7.69 billion for the quarter, compared to analysts' expectations of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company's revenue was up 31.7% compared to the same quarter last year. During the same period last year, the firm earned $0.69 EPS. As a group, sell-side 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 repurchase plan on Wednesday, May 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the transaction, the executive vice president owned 125,505 shares of the company's stock, valued at approximately $21,738,721.05. This represents a 7.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Mark D. Papermaster sold 17,998 shares of the stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the transaction, the executive vice president owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.06% of the company's stock.

Institutional Trading of Advanced Micro Devices

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Frisch Financial Group Inc. acquired a new position in shares of Advanced Micro Devices during the second quarter valued at about $260,000. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Advanced Micro Devices by 815.4% in the 2nd quarter. OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 54,921 shares of the semiconductor manufacturer's stock worth $7,793,000 after purchasing an additional 48,921 shares in the last quarter. Berkshire Capital Holdings Inc. lifted its stake in shares of Advanced Micro Devices by 584,900.0% during the 2nd quarter. Berkshire Capital Holdings Inc. now owns 58,500 shares of the semiconductor manufacturer's stock valued at $8,301,000 after buying an additional 58,490 shares in the last quarter. Analog Century Management LP lifted its stake in shares of Advanced Micro Devices by 12.2% during the 2nd quarter. Analog Century Management LP now owns 679,140 shares of the semiconductor manufacturer's stock valued at $96,370,000 after buying an additional 73,678 shares in the last quarter. Finally, Nebula Research & Development LLC purchased a new stake in shares of Advanced Micro Devices during the 2nd quarter valued at approximately $274,000. 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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