Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 7.3% - Should You Sell?

Key Points

• Shares of Advanced Micro Devices were down 7.3% on Thursday, trading near $237.70 on ~65.5M shares (about 32% above average), even as multiple analysts raised price targets (Roth and UBS to $300) and the stock carries a consensus "Moderate Buy" with an average target of $263.21.
• In the most recent quarter AMD reported revenue of $7.69 billion, up 31.7% year-over-year and above estimates, but missed on EPS with $0.48 versus the $0.54 consensus.
• There has been notable insider selling (274,118 shares in the past 90 days, including CEO Lisa Su), while institutional ownership remains high at about 71.34% with large positions built by Norges Bank, Goldman Sachs and T. Rowe Price.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) were down 7.3% during trading on Thursday . The stock traded as low as $235.74 and last traded at $237.70. Approximately 65,548,300 shares changed hands during trading, an increase of 32% from the average daily volume of 49,833,523 shares. The stock had previously closed at $256.33.

Analysts Set New Price Targets

Several equities analysts have recently commented on AMD shares. Roth Capital increased their price target on shares of Advanced Micro Devices from $250.00 to $300.00 and gave the stock a "buy" rating in a research report on Wednesday. UBS Group raised their target price on shares of Advanced Micro Devices from $265.00 to $300.00 and gave the stock a "buy" rating in a report on Wednesday. Mizuho raised their target price on shares of Advanced Micro Devices from $205.00 to $275.00 and gave the stock an "outperform" rating in a report on Monday, October 13th. KGI Securities set a $260.00 target price on shares of Advanced Micro Devices and gave the stock an "outperform" rating in a report on Monday, October 13th. 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. Three investment analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $263.21.

Advanced Micro Devices Stock Down 7.3%

The firm's 50 day simple moving average is $196.54 and its 200 day simple moving average is $156.76. The company has a market cap of $385.75 billion, a price-to-earnings ratio of 136.61, a price-to-earnings-growth ratio of 2.42 and a beta of 1.93. The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results 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 net margin of 9.57% and a return on equity of 7.54%. The firm had revenue of $7.69 billion during the quarter, compared to analyst estimates of $7.41 billion. During the same quarter in the previous year, the business posted $0.69 EPS. Advanced Micro Devices's revenue for the quarter was up 31.7% compared to the same quarter last year. Sell-side analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Forrest Eugene Norrod sold 17,200 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $160.93, for a total transaction of $2,767,996.00. Following the transaction, the executive vice president owned 313,848 shares in the company, valued at $50,507,558.64. This trade represents a 5.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Lisa T. Su sold 225,000 shares of the firm's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $163.97, for a total transaction of $36,893,250.00. Following the transaction, the chief executive officer owned 3,359,748 shares in the company, valued at $550,897,879.56. This represents a 6.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 274,118 shares of company stock valued at $46,180,719. 0.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new position in Advanced Micro Devices in the second quarter worth approximately $3,094,662,000. Kingstone Capital Partners Texas LLC acquired a new position in Advanced Micro Devices in the second quarter worth approximately $958,422,000. Goldman Sachs Group Inc. grew its position in Advanced Micro Devices by 169.7% in the first 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 during the last quarter. T. Rowe Price Investment Management Inc. grew its position in Advanced Micro Devices by 131.5% in the first 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 during the last quarter. Finally, Nuveen LLC acquired a new position in Advanced Micro Devices in the first quarter worth approximately $436,746,000. Institutional investors and hedge funds own 71.34% of the company's stock.

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.

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