Advanced Micro Devices (NASDAQ:AMD) Trading Up 1.9% - Here's Why

Key Points

• AMD shares increased by 1.9% during trading, reaching a high of $167.17 before closing at $165.12, despite a decline in trading volume.
• Analysts have issued a variety of ratings for AMD, with the consensus rating being "Moderate Buy" and a target price of $154.68, following several ups and downs in ratings from firms like Bank of America and KeyCorp.
• AMD reported strong quarterly earnings with $0.96 EPS, surpassing estimates, and revenue growth of 35.9% year-over-year, amounting to $7.44 billion.
• The company has launched a $6.00 billion share repurchase plan, indicating management's belief that the stock is undervalued, while also experiencing recent insider selling activities.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) traded up 1.9% during trading on Friday . The company traded as high as $167.17 and last traded at $165.12. 25,741,366 shares changed hands during trading, a decline of 41% from the average session volume of 43,304,223 shares. The stock had previously closed at $162.12.

Analysts Set New Price Targets

AMD has been the subject of several recent analyst reports. Wedbush reissued an "outperform" rating and issued a $120.00 price target (up previously from $115.00) on shares of Advanced Micro Devices in a report on Wednesday, May 7th. Roth Capital set a $150.00 price target on shares of Advanced Micro Devices and gave the stock a "buy" rating in a report on Friday, June 13th. Morgan Stanley cut their price target on shares of Advanced Micro Devices from $137.00 to $121.00 and set an "equal weight" rating for the company in a report on Wednesday, May 7th. Wells Fargo & Company boosted their price target on shares of Advanced Micro Devices from $120.00 to $185.00 and gave the stock an "overweight" rating in a report on Wednesday, July 16th. Finally, Erste Group Bank raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a report on Wednesday, July 23rd. Eleven investment analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and five have given a strong buy rating to the stock. According to MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average price target of $154.68.

Advanced Micro Devices Price Performance

The firm has a market cap of $281.57 billion, a price-to-earnings ratio of 127.69, a PEG ratio of 2.20 and a beta of 2.05. 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 company's 50-day moving average price is $132.24 and its 200-day moving average price is $114.41.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share (EPS) for the quarter, topping the consensus estimate 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 quarter in the prior year, the company earned $0.62 earnings per share. The business's quarterly revenue was up 35.9% on a year-over-year basis. On average, equities research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

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

Insider Buying and Selling at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 17,998 shares of the company's stock in a transaction that occurred on 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 sale, the executive vice president directly owned 1,713,710 shares in the company, valued at approximately $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several hedge funds have recently added to or reduced their stakes in the stock. Tritonpoint Wealth LLC increased its stake in Advanced Micro Devices by 2.6% in the second quarter. Tritonpoint Wealth LLC now owns 2,857 shares of the semiconductor manufacturer's stock valued at $405,000 after purchasing an additional 72 shares during the last quarter. Scott & Selber Inc. grew its position in shares of Advanced Micro Devices by 0.7% during the second quarter. Scott & Selber Inc. now owns 10,465 shares of the semiconductor manufacturer's stock worth $1,485,000 after acquiring an additional 73 shares during the last quarter. Sandy Cove Advisors LLC grew its position in shares of Advanced Micro Devices by 1.4% during the second quarter. Sandy Cove Advisors LLC now owns 5,470 shares of the semiconductor manufacturer's stock worth $776,000 after acquiring an additional 75 shares during the last quarter. Pine Haven Investment Counsel Inc grew its position in shares of Advanced Micro Devices by 3.3% during the second quarter. Pine Haven Investment Counsel Inc now owns 2,682 shares of the semiconductor manufacturer's stock worth $381,000 after acquiring an additional 85 shares during the last quarter. Finally, SLT Holdings LLC grew its position in shares of Advanced Micro Devices by 4.3% during the second quarter. SLT Holdings LLC now owns 2,156 shares of the semiconductor manufacturer's stock worth $306,000 after acquiring an additional 88 shares during the last quarter. 71.34% of the stock is currently owned by hedge funds and other 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.