Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 2% - Should You Sell?

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 share price dropped 2% on Thursday . The stock traded as low as $179.64 and last traded at $180.74. Approximately 32,586,844 shares changed hands during trading, a decline of 30% from the average daily volume of 46,640,926 shares. The stock had previously closed at $184.42.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on AMD shares. Sanford C. Bernstein increased their price objective on shares of Advanced Micro Devices from $95.00 to $140.00 and gave the company a "market perform" rating in a research note on Monday, July 21st. Rosenblatt Securities restated a "buy" rating and set a $200.00 price target on shares of Advanced Micro Devices in a research note on Friday, June 13th. UBS Group boosted their price objective on Advanced Micro Devices from $150.00 to $210.00 and gave the company a "buy" rating in a research note on Monday, July 28th. Morgan Stanley cut their price target on Advanced Micro Devices from $185.00 to $168.00 and set an "equal weight" rating for the company in a report on Wednesday, August 6th. Finally, Hsbc Global Res raised shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 10th. One equities research analyst has rated the stock with a sell rating, thirteen have given a hold rating, twenty-two have assigned a buy rating and four have given a strong buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $180.12.

Advanced Micro Devices Price Performance

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 business's 50 day moving average price is $150.71 and its two-hundred day moving average price is $120.29. The stock has a market cap of $285.85 billion, a P/E ratio of 101.23, a price-to-earnings-growth ratio of 2.10 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data 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). Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The firm had revenue of $7.69 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same period in the previous year, the firm posted $0.69 earnings per share. The business's revenue was up 31.7% compared to the same quarter last year. As a group, sell-side analysts expect that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices announced that its Board of Directors has authorized a stock buyback program on Wednesday, May 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to purchase up to 3.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices stock in a transaction dated 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 transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. This trade represents a 1.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Paul Darren Grasby sold 10,000 shares of the company's stock in a transaction dated 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 completion of the sale, the executive vice president owned 125,505 shares in the company, valued at approximately $21,738,721.05. This trade represents a 7.38% decrease in their position. The disclosure for this sale can be found here. 0.06% of the stock is currently owned by corporate insiders.

Institutional Trading of Advanced Micro Devices

Hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new stake in shares of Advanced Micro Devices in the 2nd quarter worth $3,094,662,000. Kingstone Capital Partners Texas LLC purchased a new stake in shares of Advanced Micro Devices during the second quarter valued at $958,422,000. Goldman Sachs Group Inc. increased its holdings in Advanced Micro Devices by 169.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock worth $1,012,538,000 after buying an additional 6,200,850 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in Advanced Micro Devices by 131.5% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock worth $1,069,846,000 after buying an additional 5,915,185 shares in the last quarter. Finally, Toronto Dominion Bank raised its position in Advanced Micro Devices by 443.3% in the 4th quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock worth $660,475,000 after buying an additional 4,461,609 shares during the last quarter. 71.34% of the stock is owned by institutional investors.

About Advanced Micro Devices

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.