822,234 Shares in Advanced Micro Devices, Inc. (NASDAQ:AMD) Bought by Amazon Com Inc.

Key Points

• Amazon Com Inc. acquired 822,234 shares of Advanced Micro Devices, Inc. worth approximately $84.5 million, making AMD around 3.5% of Amazon's portfolio.
• Advanced Micro Devices reported $7.44 billion in revenue for the last quarter, exceeding analyst estimates, with earnings per share of $0.96.
• The company has initiated a stock buyback program authorizing up to $6 billion in share repurchases, indicating the board's belief that the shares are undervalued.

Amazon Com Inc. acquired a new stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 822,234 shares of the semiconductor manufacturer's stock, valued at approximately $84,476,000. Advanced Micro Devices accounts for approximately 3.5% of Amazon Com Inc.'s portfolio, making the stock its 3rd biggest holding. Amazon Com Inc. owned about 0.05% of Advanced Micro Devices at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Greenline Partners LLC acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth $28,000. Mpwm Advisory Solutions LLC acquired a new position in shares of Advanced Micro Devices in the 4th quarter valued at about $30,000. Summit Securities Group LLC acquired a new position in Advanced Micro Devices during the 4th quarter worth approximately $31,000. Farmers & Merchants Trust Co of Chambersburg PA lifted its position 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 worth $28,000 after acquiring an additional 200 shares in the last quarter. Finally, American Capital Advisory LLC raised its position in shares of Advanced Micro Devices by 90.3% in the 1st quarter. American Capital Advisory LLC now owns 274 shares of the semiconductor manufacturer's stock valued at $28,000 after purchasing an additional 130 shares in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Stock Performance

AMD traded up $4.35 during trading on Friday, hitting $166.47. The stock had a trading volume of 53,186,893 shares, compared to its average volume of 46,238,572. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.97 and a current ratio of 2.80. The firm has a market capitalization of $269.91 billion, a P/E ratio of 122.40, a PEG ratio of 2.14 and a beta of 2.05. The company's 50-day moving average price is $132.24 and its 200 day moving average price is $114.51. Advanced Micro Devices, Inc. has a twelve month low of $76.48 and a twelve month high of $174.05.

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

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

Insiders Place Their Bets

In other news, EVP Mark D. Papermaster sold 17,998 shares of the business's stock in a transaction that occurred 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. The trade was a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 0.06% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on AMD shares. Citigroup boosted their price target on Advanced Micro Devices from $145.00 to $165.00 and gave the company a "neutral" rating in a report on Friday, July 18th. Jefferies Financial Group boosted their price target on Advanced Micro Devices from $100.00 to $160.00 in a report on Wednesday, July 16th. Wells Fargo & Company upped their price objective 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. Raymond James Financial restated an "outperform" rating and set a $120.00 price objective (down from $150.00) on shares of Advanced Micro Devices in a research note on Wednesday, May 7th. Finally, Robert W. Baird lowered their price objective on Advanced Micro Devices from $175.00 to $140.00 and set an "outperform" rating for the company in a research note on Wednesday, May 7th. Eleven equities research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and five have given a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $154.68.

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.