Advanced Micro Devices (NASDAQ:AMD) Shares Down 4.6% - What's Next?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) fell 4.6% during mid-day trading on Tuesday . The stock traded as low as $136.12 and last traded at $135.43. 23,079,215 shares changed hands during mid-day trading, a decline of 45% from the average session volume of 42,124,447 shares. The stock had previously closed at $141.90.

Analyst Ratings Changes

AMD has been the subject of a number of research analyst reports. Jefferies Financial Group cut Advanced Micro Devices from a "buy" rating to a "hold" rating and lowered their target price for the company from $135.00 to $120.00 in a report on Thursday, March 27th. Wells Fargo & Company reduced their price target on shares of Advanced Micro Devices from $140.00 to $120.00 and set an "overweight" rating on the stock in a research report on Thursday, April 17th. Raymond James Financial restated an "outperform" rating and issued a $120.00 price objective (down previously from $150.00) on shares of Advanced Micro Devices in a report on Wednesday, May 7th. KeyCorp downgraded shares of Advanced Micro Devices from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, April 8th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $200.00 target price on shares of Advanced Micro Devices in a report on Friday, June 13th. One analyst has rated the stock with a sell rating, twelve have issued a hold rating, twenty-two have issued a buy rating and four have issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $138.19.

Advanced Micro Devices Stock Performance

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 50-day simple moving average of $115.18 and a 200 day simple moving average of $111.22. The company has a market cap of $224.60 billion, a price-to-earnings ratio of 101.85, a price-to-earnings-growth ratio of 1.83 and a beta of 2.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced 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. Advanced Micro Devices had a net margin of 8.03% and a return on equity of 8.30%. The business had revenue of $7.44 billion for the quarter, compared to analysts' expectations of $7.10 billion. During the same period in the previous year, the company posted $0.62 EPS. The company's quarterly revenue was up 35.9% on a year-over-year basis. On average, sell-side analysts predict 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 share repurchase plan on Wednesday, May 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,500 shares of the stock in a transaction dated Tuesday, April 15th. The shares were sold at an average price of $95.47, for a total transaction of $1,670,725.00. Following the completion of the sale, the executive vice president owned 1,713,710 shares in the company, valued at approximately $163,607,893.70. This represents a 1.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.06% of the company's stock.

Institutional Trading of Advanced Micro Devices

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMD. Greenline Partners LLC purchased a new stake in shares of Advanced Micro Devices in the fourth quarter valued at about $28,000. Mpwm Advisory Solutions LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth about $30,000. Summit Securities Group LLC acquired a new stake in Advanced Micro Devices in the fourth quarter valued at about $31,000. Farmers & Merchants Trust Co of Chambersburg PA boosted its holdings in Advanced Micro Devices by 277.8% in the 1st quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock valued at $28,000 after purchasing an additional 200 shares in the last quarter. Finally, American Capital Advisory LLC increased its position in Advanced Micro Devices by 90.3% during the 1st 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 period. 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.