Advanced Micro Devices (NASDAQ:AMD) Stock Price Up 2.4% - What's Next?

Key Points

• Advanced Micro Devices (AMD) shares increased by 2.4% on Monday, reaching a high of $178.82 before closing at $176.90, with trading volume down by 33% from the average.
• Wall Street analysts have significantly increased their price targets for AMD, with estimates ranging from $180 to $210, reflecting a general optimism about the company's market position.
• AMD's recent earnings report showed a revenue of $7.69 billion, surpassing expectations, but EPS of $0.48 fell short of the consensus estimate of $0.54.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) rose 2.4% during mid-day trading on Monday . The company traded as high as $178.82 and last traded at $176.90. Approximately 30,685,186 shares traded hands during trading, a decline of 33% from the average daily volume of 45,965,148 shares. The stock had previously closed at $172.76.

Wall Street Analysts Forecast Growth

AMD has been the subject of a number of research reports. UBS Group increased their price target on Advanced Micro Devices from $150.00 to $210.00 and gave the company a "buy" rating in a research note on Monday, July 28th. Wells Fargo & Company raised their price objective on Advanced Micro Devices from $120.00 to $185.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 16th. Evercore ISI raised their price objective on Advanced Micro Devices from $144.00 to $188.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 6th. Piper Sandler raised their price objective on Advanced Micro Devices from $140.00 to $190.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. Finally, Stifel Nicolaus raised their price objective on Advanced Micro Devices from $161.00 to $190.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating, twenty-two have assigned a buy rating and four have given a strong buy rating to the company. According to MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $180.12.

Advanced Micro Devices Trading Down 1.9%

The company has a fifty day simple moving average of $149.48 and a two-hundred day simple moving average of $119.82. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.49 and a quick ratio of 1.81. The company has a market capitalization of $293.65 billion, a P/E ratio of 103.99, a price-to-earnings-growth ratio of 2.18 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.06). The business had revenue of $7.69 billion during the quarter, compared to analyst estimates of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company's revenue for the quarter was up 31.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.69 earnings per share. On average, analysts forecast that Advanced Micro Devices, Inc. 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 buyback 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 purchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its stock is undervalued.

Insider Transactions at Advanced Micro Devices

In related news, EVP Paul Darren Grasby sold 10,000 shares of Advanced Micro Devices stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $173.21, for a total transaction of $1,732,100.00. Following the sale, the executive vice president directly owned 125,505 shares of the company's stock, valued at $21,738,721.05. This trade represents a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices 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 sale, the executive vice president directly owned 1,713,710 shares in the company, valued at approximately $265,676,461.30. This trade represents a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.06% of the stock is owned by company insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors have recently added to or reduced their stakes in the company. Toronto Dominion Bank lifted its stake in Advanced Micro Devices by 443.3% during the fourth quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock worth $660,475,000 after purchasing an additional 4,461,609 shares during the period. Bank Pictet & Cie Europe AG lifted its stake in Advanced Micro Devices by 12.7% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock worth $31,958,000 after purchasing an additional 29,825 shares during the period. Valicenti Advisory Services Inc. lifted its stake in Advanced Micro Devices by 4.0% during the first quarter. Valicenti Advisory Services Inc. now owns 76,826 shares of the semiconductor manufacturer's stock worth $7,893,000 after purchasing an additional 2,944 shares during the period. Sound Income Strategies LLC lifted its stake in Advanced Micro Devices by 17.2% during the first quarter. Sound Income Strategies LLC now owns 1,728 shares of the semiconductor manufacturer's stock worth $178,000 after purchasing an additional 253 shares during the period. Finally, Brighton Jones LLC lifted its stake in Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after purchasing an additional 29,438 shares during the period. 71.34% of the stock is 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.