Advanced Micro Devices (NASDAQ:AMD) to Buyback $6.00 billion in Stock

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

Wall Street Analyst Weigh In

A number of equities research analysts have commented on AMD shares. Melius lowered Advanced Micro Devices from a "buy" rating to a "hold" rating and reduced their price target for the company from $160.00 to $129.00 in a research report on Tuesday, January 28th. Seaport Res Ptn raised Advanced Micro Devices to a "strong-buy" rating in a research note on Wednesday, April 30th. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $120.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, May 7th. Barclays decreased their price target on Advanced Micro Devices from $140.00 to $110.00 and set an "overweight" rating for the company in a research report on Tuesday, April 22nd. Finally, Susquehanna decreased their price target on Advanced Micro Devices from $150.00 to $135.00 and set a "positive" rating for the company in a research report on Thursday, April 24th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating, twenty have given a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $131.45.

Advanced Micro Devices Stock Performance

Shares of NASDAQ AMD traded up $5.26 during midday trading on Wednesday, hitting $117.72. 86,490,333 shares of the stock traded hands, compared to its average volume of 42,912,874. The firm has a 50-day moving average of $97.81 and a two-hundred day moving average of $115.78. The firm has a market capitalization of $190.87 billion, a P/E ratio of 118.91, a PEG ratio of 1.11 and a beta of 1.97. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.83 and a current ratio of 2.62. Advanced Micro Devices has a one year low of $76.48 and a one year high of $187.28.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 EPS for the quarter, topping analysts' consensus estimates 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 company had revenue of $7.44 billion for the quarter, compared to analysts' expectations of $7.10 billion. During the same period last year, the firm earned $0.62 EPS. Advanced Micro Devices's revenue for the quarter was up 35.9% compared to the same quarter last year. On average, equities analysts forecast that Advanced Micro Devices will post 3.87 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Mark D. Papermaster sold 17,500 shares of the firm's stock in a transaction dated Tuesday, April 15th. The stock was sold at an average price of $95.47, for a total transaction of $1,670,725.00. Following the completion of the transaction, the executive vice president now owns 1,713,710 shares in the company, valued at $163,607,893.70. This trade represents a 1.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.06% of the stock is currently 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.

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