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

Key Points

• Piper Sandler recently raised its price target for Advanced Micro Devices (AMD) from $140.00 to $190.00, indicating a potential upside of 16.65% from its previous close.
• Despite missing quarterly earnings estimates, AMD reported a revenue increase of 31.7% compared to the same quarter last year, with $7.69 billion in revenue.
• AMD announced a $6.00 billion stock buyback plan, suggesting management believes the stock is undervalued.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price target lifted by Piper Sandler from $140.00 to $190.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the semiconductor manufacturer's stock. Piper Sandler's target price suggests a potential upside of 16.65% from the company's previous close.

Other equities research analysts have also issued research reports about the company. Morgan Stanley dropped their target price on Advanced Micro Devices from $185.00 to $168.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Dbs Bank downgraded Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 8th. Bank of America boosted their price target on Advanced Micro Devices from $175.00 to $200.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Benchmark raised their price objective on shares of Advanced Micro Devices from $170.00 to $210.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Melius upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 target price for the company in a research note on Monday, June 23rd. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating, twenty-three have assigned a buy rating and four have issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $173.52.

Advanced Micro Devices Price Performance

Shares of AMD stock traded down $11.43 on Wednesday, hitting $162.88. 75,153,278 shares of the stock traded hands, compared to its average volume of 45,233,250. The firm has a market cap of $264.09 billion, a price-to-earnings ratio of 119.72, a PEG ratio of 2.34 and a beta of 1.94. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.80 and a quick ratio of 1.97. The firm has a 50 day simple moving average of $141.11 and a two-hundred day simple moving average of $117.23. Advanced Micro Devices has a 52 week low of $76.48 and a 52 week high of $182.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its quarterly earnings data 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). Advanced Micro Devices had a return on equity of 8.30% and a net margin of 8.03%. The firm had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. During the same period in the previous year, the firm earned $0.69 EPS. The business's revenue was up 31.7% compared to the same quarter last year. As a group, equities research analysts predict that Advanced Micro Devices will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to repurchase up to 3.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's management believes its stock is undervalued.

Insider Transactions at Advanced Micro Devices

In other news, 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 value of $2,790,229.94. Following the completion of the sale, 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 sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently modified their holdings of AMD. Dogwood Wealth Management LLC lifted its stake in Advanced Micro Devices by 2,311.1% in the second quarter. Dogwood Wealth Management LLC now owns 217 shares of the semiconductor manufacturer's stock worth $30,000 after acquiring an additional 208 shares during the period. Avion Wealth lifted its position in shares of Advanced Micro Devices by 49.3% in the 2nd quarter. Avion Wealth now owns 218 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 72 shares during the period. West Branch Capital LLC boosted its stake in shares of Advanced Micro Devices by 3,057.1% during the 2nd quarter. West Branch Capital LLC now owns 221 shares of the semiconductor manufacturer's stock valued at $31,000 after purchasing an additional 214 shares in the last quarter. Greenline Partners LLC bought a new stake in shares of Advanced Micro Devices during the 4th quarter valued at about $28,000. Finally, Mpwm Advisory Solutions LLC bought a new position in Advanced Micro Devices in the fourth quarter worth $30,000. Institutional investors 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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