Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.4% - What's Next?

Key Points

• Advanced Micro Devices (AMD) shares traded down 1.4% to $174.97 with a significant decline in trading volume, indicating a potential sell sentiment among investors.
• Analysts' ratings for AMD are mixed, with one sell rating, thirteen holds, twenty-two buys, and four strong buys, reflecting a consensus target price of $180.12.
• AMD's recent quarterly earnings missed expectations, reporting $0.48 EPS against a forecast of $0.54, though the company did experience a 31.7% year-over-year revenue growth.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) traded down 1.4% during trading on Monday . The company traded as low as $174.36 and last traded at $174.97. 17,103,667 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 46,691,254 shares. The stock had previously closed at $177.51.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Jefferies Financial Group raised their price target on Advanced Micro Devices from $100.00 to $160.00 in a research report on Wednesday, July 16th. Wall Street Zen upgraded Advanced Micro Devices from a "sell" rating to a "hold" rating in a research report on Monday, May 12th. Bank of America raised their price objective on Advanced Micro Devices from $175.00 to $200.00 and gave the company a "buy" rating in a research note on Tuesday, July 29th. UBS Group raised their price objective 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. Finally, Dbs Bank lowered Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 8th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $180.12.

Advanced Micro Devices Stock Up 2.5%

The stock has a 50 day moving average price of $154.45 and a 200 day moving average price of $121.67. The stock has a market capitalization of $272.25 billion, a price-to-earnings ratio of 96.41, a price-to-earnings-growth ratio of 1.95 and a beta of 1.94. The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS for the quarter, missing analysts' consensus estimates of $0.54 by ($0.06). Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The firm had revenue of $7.69 billion for the quarter, compared to analyst estimates of $7.41 billion. During the same period in the previous year, the business posted $0.69 earnings per share. The business's revenue for the quarter was up 31.7% compared to the same quarter last year. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

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

Insider Transactions at Advanced Micro Devices

In other 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 approximately $21,738,721.05. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices stock in a transaction dated Tuesday, July 15th. The shares were 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 $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Advanced Micro Devices

A number of hedge funds have recently added to or reduced their stakes in the business. Stance Capital LLC bought a new stake in Advanced Micro Devices in the second quarter worth approximately $1,588,000. Cim Investment Management Inc. increased its holdings in Advanced Micro Devices by 99.6% in the second quarter. Cim Investment Management Inc. now owns 19,441 shares of the semiconductor manufacturer's stock worth $2,553,000 after purchasing an additional 9,700 shares in the last quarter. Thompson Davis & CO. Inc. bought a new stake in Advanced Micro Devices in the second quarter worth approximately $250,000. Coppell Advisory Solutions LLC increased its holdings in Advanced Micro Devices by 21.4% in the second quarter. Coppell Advisory Solutions LLC now owns 3,731 shares of the semiconductor manufacturer's stock worth $537,000 after purchasing an additional 658 shares in the last quarter. Finally, Newbridge Financial Services Group Inc. increased its holdings in Advanced Micro Devices by 10.0% in the second quarter. Newbridge Financial Services Group Inc. now owns 29,434 shares of the semiconductor manufacturer's stock worth $4,177,000 after purchasing an additional 2,667 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors.

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.