Advanced Micro Devices (NASDAQ:AMD) Trading Up 3.4% After Analyst Upgrade

Key Points

• Shares of Advanced Micro Devices (NASDAQ:AMD) rose 3.4% following an upgrade by Bank of America, which raised the price target from $175.00 to $200.00.
• The company reported a 35.9% year-over-year increase in revenue, reaching $7.44 billion, and exceeded earnings expectations with $0.96 per share.
• AMD's Board of Directors has approved a $6.00 billion stock repurchase plan, indicating management's belief that the shares are undervalued.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Get Free Report) were up 3.4% on Tuesday after Bank of America raised their price target on the stock from $175.00 to $200.00. Bank of America currently has a buy rating on the stock. Advanced Micro Devices traded as high as $182.31 and last traded at $179.55. Approximately 43,088,273 shares traded hands during trading, a decline of 1% from the average daily volume of 43,658,711 shares. The stock had previously closed at $173.66.

Other analysts have also issued reports about the stock. Erste Group Bank upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research note on Wednesday, July 23rd. KeyCorp lowered shares of Advanced Micro Devices from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, April 8th. Wedbush reiterated an "outperform" rating and issued a $120.00 price target (up from $115.00) on shares of Advanced Micro Devices in a research note on Wednesday, May 7th. DZ Bank upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $118.00 price target on the stock in a research note on Thursday, May 8th. Finally, Dbs Bank lowered shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 8th. Eleven research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and five have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and a consensus target price of $157.42.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 17,998 shares of the business'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 transaction, 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.06% of the stock is currently owned by insiders.

Institutional Trading of Advanced Micro Devices

Several institutional investors have recently modified their holdings of the company. Brighton Jones LLC raised its position in shares of Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after purchasing an additional 29,438 shares during the period. Revolve Wealth Partners LLC raised its position 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 purchasing an additional 234 shares during the period. Bank Pictet & Cie Europe AG raised its position in shares of Advanced Micro Devices by 12.7% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock worth $31,958,000 after purchasing an additional 29,825 shares during the period. Brown Brothers Harriman & Co. raised its position in shares of Advanced Micro Devices by 5.5% during the fourth quarter. Brown Brothers Harriman & Co. now owns 11,066 shares of the semiconductor manufacturer's stock worth $1,337,000 after purchasing an additional 575 shares during the period. Finally, Summit Securities Group LLC acquired a new stake in shares of Advanced Micro Devices during the fourth quarter worth $31,000. Institutional investors and hedge funds own 71.34% of the company's stock.

Advanced Micro Devices Stock Performance

The firm has a 50 day moving average of $133.42 and a 200-day moving average of $114.81. The stock has a market capitalization of $287.31 billion, a PE ratio of 130.58, a P/E/G ratio of 2.20 and a beta of 2.05. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.97 and a current ratio of 2.80.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its earnings results on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.93 by $0.03. Advanced Micro Devices had a return on equity of 8.30% and a net margin of 8.03%. The company had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.10 billion. During the same period in the prior year, the firm posted $0.62 EPS. The business's revenue was up 35.9% compared to the same quarter last year. Research analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Advanced Micro Devices announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 14th that allows the company to buyback $6.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to reacquire up to 3.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership 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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