Advanced Micro Devices (NASDAQ:AMD) Trading Down 2.4% - Here's What Happened

Key Points

• Advanced Micro Devices (NASDAQ:AMD) shares fell 2.4% to close at $176.68, with trading volume declining 52% from its daily average.
• Analyst ratings for AMD show a consensus of 23 buy ratings, 13 hold ratings, and 1 sell rating, with a price target average of $180.12.
• The company reported $0.48 EPS for its latest quarter, missing estimates, but achieved a revenue of $7.69 billion, exceeding expectations and marking a 31.7% year-over-year growth.

Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report)'s share price was down 2.4% on Friday . The stock traded as low as $176.35 and last traded at $176.68. Approximately 22,456,780 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 46,697,316 shares. The stock had previously closed at $180.95.

Wall Street Analyst Weigh In

AMD has been the subject of a number of recent research reports. Susquehanna boosted their target price on Advanced Micro Devices from $135.00 to $210.00 and gave the company a "positive" rating in a research note on Wednesday, July 30th. Wall Street Zen upgraded Advanced Micro Devices from a "sell" rating to a "hold" rating in a research report on Monday, May 12th. Raymond James Financial boosted their price objective on Advanced Micro Devices from $120.00 to $200.00 and gave the company an "outperform" rating in a research report on Wednesday, August 6th. Evercore ISI boosted their price objective on Advanced Micro Devices from $144.00 to $188.00 and gave the company an "outperform" rating in a research report on Wednesday, August 6th. Finally, Roth Capital set a $150.00 price target on shares of Advanced Micro Devices and gave the company a "buy" rating in a report on Friday, June 13th. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating, twenty-two have assigned a buy rating and four have assigned a strong buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $180.12.

Advanced Micro Devices Trading Down 2.0%

The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49. The stock's fifty day moving average is $149.48 and its 200 day moving average is $119.82. The stock has a market cap of $287.87 billion, a P/E ratio of 102.01, a P/E/G ratio of 2.18 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. Advanced Micro Devices's revenue for the quarter was up 31.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.69 earnings per share. As a group, equities research analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In other news, EVP Paul Darren Grasby sold 10,000 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total value of $1,732,100.00. Following the completion of the sale, the executive vice president owned 125,505 shares in the company, valued at approximately $21,738,721.05. This trade represents a 7.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the completion of the sale, 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. 0.06% of the stock is owned by company insiders.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently added to or reduced their stakes in AMD. Pinney & Scofield Inc. lifted its position in shares of Advanced Micro Devices by 81.0% during the second quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer's stock worth $27,000 after purchasing an additional 85 shares during the last quarter. Greenline Partners LLC bought a new stake in Advanced Micro Devices during the 4th quarter valued at about $28,000. Farmers & Merchants Trust Co of Chambersburg PA lifted its holdings in Advanced Micro Devices by 277.8% during the 1st quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock valued at $28,000 after buying an additional 200 shares in the last quarter. American Capital Advisory LLC lifted its holdings in Advanced Micro Devices by 90.3% during the 1st quarter. American Capital Advisory LLC now owns 274 shares of the semiconductor manufacturer's stock valued at $28,000 after buying an additional 130 shares in the last quarter. Finally, Kozak & Associates Inc. lifted its holdings in Advanced Micro Devices by 67.6% during the 1st quarter. Kozak & Associates Inc. now owns 305 shares of the semiconductor manufacturer's stock valued at $29,000 after buying an additional 123 shares in the last quarter. 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.

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