Advanced Micro Devices (NASDAQ:AMD) Trading Down 6.9% Following Analyst Downgrade

Key Points

• Shares of Advanced Micro Devices (NASDAQ:AMD) fell by 6.9% following a downgrade by Seaport Res Ptn from a strong-buy to a hold rating, with the stock trading as low as $150.29.
• Numerous research firms have issued mixed ratings on AMD, with price targets ranging from $120.00 to $213.00, and an overall consensus price target of $181.33.
• CEO Lisa T. Su sold 225,000 shares of AMD stock for approximately $36.89 million, marking a 6.28% decrease in her ownership in the company.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) were down 6.9% on Friday after Seaport Res Ptn downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $150.29 and last traded at $150.62. Approximately 33,731,594 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 46,401,789 shares. The stock had previously closed at $161.79.

Several other research firms also recently commented on AMD. Truist Financial raised Advanced Micro Devices from a "hold" rating to a "buy" rating and raised their price objective for the stock from $173.00 to $213.00 in a research note on Tuesday, August 26th. Wells Fargo & Company boosted their target price on Advanced Micro Devices from $120.00 to $185.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 16th. Bank of America upped their price target on Advanced Micro Devices from $175.00 to $200.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Rosenblatt Securities reissued a "buy" rating and set a $200.00 target price on shares of Advanced Micro Devices in a research note on Friday, June 13th. Finally, Barclays lifted their target price on Advanced Micro Devices from $130.00 to $200.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Advanced Micro Devices currently has an average rating of "Moderate Buy" and a consensus price target of $181.33.

Insider Activity at Advanced Micro Devices

In other Advanced Micro Devices news, CEO Lisa T. Su sold 225,000 shares of the company's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $163.97, for a total value of $36,893,250.00. Following the transaction, the chief executive officer directly owned 3,359,748 shares of the company's stock, valued at $550,897,879.56. This represents a 6.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Mark D. Papermaster sold 17,998 shares of the firm's stock in a transaction on 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 in the company, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 252,998 shares of company stock valued at $41,415,580. Company insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of hedge funds have recently added to or reduced their stakes in AMD. Cornerstone Advisory LLC increased its holdings in Advanced Micro Devices by 1.4% during the 2nd quarter. Cornerstone Advisory LLC now owns 4,271 shares of the semiconductor manufacturer's stock worth $606,000 after purchasing an additional 57 shares during the period. King Wealth Management Group increased its holdings in shares of Advanced Micro Devices by 2.1% in the second quarter. King Wealth Management Group now owns 3,017 shares of the semiconductor manufacturer's stock valued at $428,000 after purchasing an additional 62 shares during the last quarter. Synergy Financial Group LTD increased its stake in Advanced Micro Devices by 2.0% during the second quarter. Synergy Financial Group LTD now owns 3,309 shares of the semiconductor manufacturer's stock worth $470,000 after acquiring an additional 64 shares during the last quarter. Tortoise Investment Management LLC grew its stake in Advanced Micro Devices by 14.8% during the 2nd quarter. Tortoise Investment Management LLC now owns 503 shares of the semiconductor manufacturer's stock worth $71,000 after purchasing an additional 65 shares in the last quarter. Finally, Tritonpoint Wealth LLC raised its stake in Advanced Micro Devices by 2.6% during the 2nd quarter. Tritonpoint Wealth LLC now owns 2,857 shares of the semiconductor manufacturer's stock worth $405,000 after acquiring an additional 72 shares in the last quarter. Institutional investors own 71.34% of the company's stock.

Advanced Micro Devices Trading Down 6.6%

The stock has a market capitalization of $245.18 billion, a PE ratio of 86.68, a P/E/G ratio of 1.90 and a beta of 1.92. The company has a 50 day simple moving average of $161.22 and a 200 day simple moving average of $125.29. The company has a current ratio of 2.49, a quick ratio of 1.81 and a debt-to-equity ratio of 0.05.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.06). The firm had revenue of $7.69 billion during 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%. Advanced Micro Devices's revenue was up 31.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.69 EPS. Advanced Micro Devices has set its Q3 2025 guidance at EPS. Analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices declared that its board has authorized a stock buyback plan on Wednesday, May 14th that authorizes the company to buyback $6.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are 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.

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