Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.6% - Time to Sell?

Key Points

• Advanced Micro Devices (AMD) shares fell 1.6% during trading, reaching a low of $156.62 and closing at $160.07, with trading volume significantly down at 17.15 million shares compared to an average of 46.56 million.
• Several analysts have mixed reviews on AMD, with Erste Group Bank upgrading to "buy," while others like Morgan Stanley and Robert W. Baird set lower price targets, indicating varying levels of confidence among analysts.
• AMD reported Q2 earnings of $0.48 per share, missing estimates, even though its revenue grew 31.7% year-over-year to $7.69 billion, and set a guidance of 3.87 EPS for the current fiscal year.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s stock price traded down 1.6% during mid-day trading on Tuesday . The stock traded as low as $156.62 and last traded at $160.07. 17,150,560 shares were traded during mid-day trading, a decline of 63% from the average session volume of 46,562,512 shares. The stock had previously closed at $162.63.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on AMD. Melius Research raised shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating and raised their price target for the company from $110.00 to $175.00 in a report on Monday, June 23rd. Melius raised Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 target price on the stock in a research report on Monday, June 23rd. Evercore ISI increased their price target on Advanced Micro Devices from $144.00 to $188.00 and gave the company an "outperform" rating in a report on Wednesday, August 6th. Rosenblatt Securities restated a "buy" rating and set a $200.00 price objective on shares of Advanced Micro Devices in a report on Friday, June 13th. Finally, UBS Group increased their target price 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. Four analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Advanced Micro Devices has an average rating of "Moderate Buy" and an average target price of $181.33.

Advanced Micro Devices Stock Down 0.2%

The firm has a market cap of $262.56 billion, a price-to-earnings ratio of 92.98, a price-to-earnings-growth ratio of 1.90 and a beta of 1.92. The stock's 50 day moving average is $161.22 and its 200 day moving average is $125.29. 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 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 firm had revenue of $7.69 billion for 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 firm's revenue for the quarter was up 31.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.69 earnings per share. Advanced Micro Devices has set its Q3 2025 guidance at EPS. Analysts forecast that Advanced Micro Devices, Inc. will post 3.87 EPS for the current year.

Advanced Micro Devices declared that its Board of Directors has initiated a stock buyback program on Wednesday, May 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to buy up to 3.1% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Advanced Micro Devices

In other news, CEO Lisa T. Su sold 225,000 shares of the stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $163.97, for a total transaction of $36,893,250.00. Following the completion of the sale, the chief executive officer owned 3,359,748 shares in the company, valued at approximately $550,897,879.56. This represents a 6.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Mark D. Papermaster sold 17,998 shares of the stock in a transaction on 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 completion of the transaction, the executive vice president owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. This trade represents a 1.04% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 252,998 shares of company stock valued at $41,415,580 over the last ninety days. Insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Brighton Jones LLC grew its position 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 valued at $5,551,000 after purchasing an additional 29,438 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Advanced Micro Devices by 2.9% during the fourth quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock worth $1,001,000 after acquiring an additional 234 shares in the last quarter. Bank Pictet & Cie Europe AG lifted its holdings in shares of Advanced Micro Devices by 12.7% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock valued at $31,958,000 after buying an additional 29,825 shares during the last quarter. Triumph Capital Management grew its stake in shares of Advanced Micro Devices by 27.2% in the 4th quarter. Triumph Capital Management now owns 23,327 shares of the semiconductor manufacturer's stock valued at $2,818,000 after buying an additional 4,992 shares in the last quarter. Finally, Captrust Financial Advisors increased its holdings in Advanced Micro Devices by 3.4% in the fourth quarter. Captrust Financial Advisors now owns 78,273 shares of the semiconductor manufacturer's stock worth $9,455,000 after buying an additional 2,592 shares during the last quarter. Hedge funds and other institutional investors own 71.34% of the company's stock.

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.