Advanced Micro Devices (NASDAQ:AMD) Trading Up 1% After Analyst Upgrade

Key Points

• Advanced Micro Devices (AMD) shares increased by 1% after Morgan Stanley raised their price target from $121 to $185 while maintaining an equal weight rating on the stock.
• Several analysts have recently upgraded AMD's stock ratings, with the average target price now at $162.94, indicating a strong consensus among analysts for potential growth.
• AMD's Board of Directors has authorized a $6 billion share repurchase plan, demonstrating confidence in the company's valuation and providing a signal of potential attractiveness to investors.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) shot up 1% during mid-day trading on Wednesday after Susquehanna raised their price target on the stock from $135.00 to $210.00. Susquehanna currently has a positive rating on the stock. Advanced Micro Devices traded as high as $179.49 and last traded at $179.23. 22,985,497 shares were traded during mid-day trading, a decline of 48% from the average session volume of 43,982,078 shares. The stock had previously closed at $177.44.

A number of other equities analysts also recently issued reports on AMD. Seaport Res Ptn upgraded Advanced Micro Devices to a "strong-buy" rating in a research report on Wednesday, April 30th. Hsbc Global Res upgraded Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 10th. Rosenblatt Securities restated a "buy" rating and set a $200.00 price objective on shares of Advanced Micro Devices in a research report on Friday, June 13th. Bank of America raised their price objective on Advanced Micro Devices from $175.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday. Finally, 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 report on Wednesday, July 16th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, twenty-three have assigned a buy rating and four have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $162.94.

Insider Buying and Selling at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction that occurred on 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 transaction, the executive vice president owned 1,713,710 shares in the company, valued at $265,676,461.30. This trade represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.06% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of AMD. Kingstone Capital Partners Texas LLC bought a new position in shares of Advanced Micro Devices in the second quarter valued at approximately $958,422,000. Goldman Sachs Group Inc. lifted its holdings in Advanced Micro Devices by 169.7% during the first quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock worth $1,012,538,000 after acquiring an additional 6,200,850 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in Advanced Micro Devices by 131.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock worth $1,069,846,000 after acquiring an additional 5,915,185 shares during the period. Toronto Dominion Bank lifted its holdings 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 acquiring an additional 4,461,609 shares during the period. Finally, Nuveen LLC bought a new stake in Advanced Micro Devices during the first quarter worth $436,746,000. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Stock Down 2.3%

The stock has a fifty day moving average of $137.35 and a 200 day moving average of $116.10. The firm has a market capitalization of $279.35 billion, a P/E ratio of 126.34, a price-to-earnings-growth ratio of 2.37 and a beta of 2.05. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.80 and a quick ratio of 1.97.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly 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. The business had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.10 billion. Advanced Micro Devices had a return on equity of 8.30% and a net margin of 8.03%. Advanced Micro Devices's quarterly revenue was up 35.9% compared to the same quarter last year. During the same period last year, the company posted $0.62 earnings per share. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 EPS for the current fiscal year.

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

Advanced Micro Devices Company Profile

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.