Advanced Micro Devices (NASDAQ:AMD) Authorizes Share Buyback Plan

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) declared that its Board of Directors has approved a share buyback plan on Wednesday, May 14th, RTT News reports. The company plans to repurchase $6.00 billion in shares. This repurchase authorization allows the semiconductor manufacturer to buy up to 3.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. Melius downgraded shares of Advanced Micro Devices from a "buy" rating to a "hold" rating and lowered their price target for the company from $160.00 to $129.00 in a report on Tuesday, January 28th. Robert W. Baird lowered their price target on shares of Advanced Micro Devices from $175.00 to $140.00 and set an "outperform" rating for the company in a report on Wednesday, May 7th. UBS Group lowered their price target on shares of Advanced Micro Devices from $155.00 to $150.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. KeyCorp downgraded shares of Advanced Micro Devices from an "overweight" rating to a "sector weight" rating in a report on Tuesday, April 8th. Finally, Stifel Nicolaus set a $132.00 price objective on shares of Advanced Micro Devices in a research report on Monday, April 28th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, twenty have assigned a buy rating and three have given a strong buy rating to the company. According to MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and a consensus target price of $132.10.

Advanced Micro Devices Stock Performance

Shares of NASDAQ AMD traded up $2.18 during trading on Friday, reaching $117.17. 42,845,715 shares of the company traded hands, compared to its average volume of 42,689,422. The firm's fifty day simple moving average is $98.94 and its 200 day simple moving average is $114.71. The stock has a market cap of $189.98 billion, a P/E ratio of 118.35, a PEG ratio of 1.11 and a beta of 1.97. Advanced Micro Devices has a 12-month low of $76.48 and a 12-month high of $187.28. The company has a current ratio of 2.62, a quick ratio of 1.83 and a debt-to-equity ratio of 0.03.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.03. Advanced Micro Devices had a return on equity of 7.42% and a net margin of 6.36%. The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.10 billion. During the same quarter in the previous year, the business earned $0.62 EPS. Advanced Micro Devices's revenue for the quarter was up 35.9% compared to the same quarter last year. As a group, research analysts anticipate that Advanced Micro Devices will post 3.87 earnings per share for the current fiscal year.

Insider Activity at Advanced Micro Devices

In related news, EVP Mark D. Papermaster sold 17,500 shares of Advanced Micro Devices stock in a transaction dated Tuesday, April 15th. The stock was sold at an average price of $95.47, for a total value of $1,670,725.00. Following the sale, the executive vice president now directly owns 1,713,710 shares in the company, valued at approximately $163,607,893.70. The trade was a 1.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.06% of the stock is owned by company insiders.

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.