Advanced Micro Devices (NASDAQ:AMD) Stock Price Expected to Rise, Barclays Analyst Says

Key Points

• Barclays has raised its price target for Advanced Micro Devices (AMD) from $130 to $200, indicating a potential upside of 22.61% based on the company's previous close.
• Despite a missed earnings estimate of $0.48 per share compared to the expected $0.54, AMD's revenue for the quarter was higher than anticipated at $7.69 billion, a 31.7% increase year-over-year.
• The company has initiated a $6 billion share repurchase plan, signaling confidence from its board of directors about the stock being undervalued.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price target hoisted by investment analysts at Barclays from $130.00 to $200.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the semiconductor manufacturer's stock. Barclays's price target points to a potential upside of 17.44% from the stock's previous close.

Other research analysts have also issued reports about the company. The Goldman Sachs Group raised Advanced Micro Devices to a "hold" rating and set a $140.00 target price on the stock in a research report on Thursday, July 10th. 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 research report on Monday, July 28th. Benchmark upped their target price on Advanced Micro Devices from $170.00 to $210.00 and gave the stock a "buy" rating in a research report on Wednesday. Raymond James Financial upped their price target on Advanced Micro Devices from $120.00 to $200.00 and gave the stock an "outperform" rating in a research note on Wednesday. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $200.00 price target on shares of Advanced Micro Devices in a research note on Friday, June 13th. Thirteen equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and four have issued a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $178.56.

Advanced Micro Devices Stock Up 4.4%

AMD stock traded up $7.18 during midday trading on Wednesday, hitting $170.30. 74,010,774 shares of the company's stock were exchanged, compared to its average volume of 45,849,383. Advanced Micro Devices has a 12-month low of $76.48 and a 12-month high of $182.50. The company has a current ratio of 2.80, a quick ratio of 1.97 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $276.12 billion, a price-to-earnings ratio of 98.25, a price-to-earnings-growth ratio of 2.31 and a beta of 1.94. The firm has a 50 day moving average price of $142.11 and a 200-day moving average price of $117.55.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.54 by ($0.06). The business had revenue of $7.69 billion for the quarter, compared to analyst estimates of $7.41 billion. Advanced Micro Devices had a return on equity of 7.61% and a net margin of 9.57%. The company's revenue was up 31.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.69 EPS. On average, analysts anticipate that Advanced Micro Devices will post 3.87 EPS for the current year.

Advanced Micro Devices announced that its board has authorized a stock repurchase program on Wednesday, May 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 17,998 shares of the company's stock in a transaction on 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 completion of the sale, the executive vice president directly owned 1,713,710 shares in the company, valued at $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.06% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of Advanced Micro Devices by 1.4% during the first quarter. Vanguard Group Inc. now owns 152,367,351 shares of the semiconductor manufacturer's stock worth $15,654,222,000 after buying an additional 2,157,199 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Advanced Micro Devices by 9.9% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 21,401,436 shares of the semiconductor manufacturer's stock worth $2,585,079,000 after purchasing an additional 1,929,225 shares during the last quarter. Amundi raised its position in Advanced Micro Devices by 8.0% during the 1st quarter. Amundi now owns 17,829,010 shares of the semiconductor manufacturer's stock worth $1,677,014,000 after purchasing an additional 1,319,064 shares during the last quarter. Northern Trust Corp raised its position in Advanced Micro Devices by 20.1% during the 4th quarter. Northern Trust Corp now owns 17,155,522 shares of the semiconductor manufacturer's stock worth $2,072,215,000 after purchasing an additional 2,874,012 shares during the last quarter. Finally, Invesco Ltd. raised its position in Advanced Micro Devices by 4.0% during the 1st quarter. Invesco Ltd. now owns 11,819,012 shares of the semiconductor manufacturer's stock worth $1,214,285,000 after purchasing an additional 450,695 shares during the last quarter. 71.34% of the stock is currently owned by institutional investors and hedge funds.

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.