American Alpha Advisors LLC Takes $518,000 Position in Advanced Micro Devices, Inc. (NASDAQ:AMD)

Key Points

• American Alpha Advisors LLC has made a new investment in Advanced Micro Devices, Inc. (NASDAQ:AMD), purchasing 5,040 shares valued at approximately $518,000 during the first quarter.
• Despite posting quarterly revenue of $7.69 billion—exceeding analysts' expectations—the company missed earnings per share estimates, reporting $0.48 compared to the consensus forecast of $0.54.
• Advanced Micro Devices announced a share buyback program allowing for up to $6.00 billion in repurchases, indicating a belief by the board that its shares are currently undervalued.

American Alpha Advisors LLC bought a new stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 5,040 shares of the semiconductor manufacturer's stock, valued at approximately $518,000.

A number of other large investors have also recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in Advanced Micro Devices by 1.4% during the first quarter. Vanguard Group Inc. now owns 152,367,351 shares of the semiconductor manufacturer's stock valued at $15,654,222,000 after buying an additional 2,157,199 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Advanced Micro Devices by 9.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 21,401,436 shares of the semiconductor manufacturer's stock worth $2,585,079,000 after purchasing an additional 1,929,225 shares in the last quarter. Northern Trust Corp boosted its position in shares of Advanced Micro Devices by 20.1% during the fourth quarter. Northern Trust Corp now owns 17,155,522 shares of the semiconductor manufacturer's stock worth $2,072,215,000 after acquiring an additional 2,874,012 shares during the last quarter. Invesco Ltd. boosted its position in shares of Advanced Micro Devices by 4.0% during the first quarter. Invesco Ltd. now owns 11,819,012 shares of the semiconductor manufacturer's stock worth $1,214,285,000 after acquiring an additional 450,695 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in shares of Advanced Micro Devices by 4.6% during the first quarter. Charles Schwab Investment Management Inc. now owns 10,549,100 shares of the semiconductor manufacturer's stock worth $1,083,815,000 after acquiring an additional 466,048 shares during the last quarter. Institutional investors own 71.34% of the company's stock.

Insider Transactions at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,998 shares of the company'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 transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.06% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have commented on AMD. Wall Street Zen upgraded shares of Advanced Micro Devices from a "sell" rating to a "hold" rating in a research report on Monday, May 12th. Roth Capital set a $150.00 price target on shares of Advanced Micro Devices and gave the stock a "buy" rating in a research note on Friday, June 13th. Mizuho raised their target price on shares of Advanced Micro Devices from $152.00 to $175.00 and gave the company an "outperform" rating in a research report on Wednesday, July 16th. Wedbush reissued a "cautious" rating on shares of Advanced Micro Devices in a research report on Saturday. Finally, Robert W. Baird lowered their price target on shares of Advanced Micro Devices from $175.00 to $140.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating, twenty-two have given a buy rating and four have assigned a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $179.21.

Advanced Micro Devices Price Performance

AMD traded down $0.48 during trading on Monday, hitting $172.28. The company's stock had a trading volume of 70,466,127 shares, compared to its average volume of 67,829,976. The firm's 50 day moving average price is $144.55 and its two-hundred day moving average price is $118.17. 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, Inc. has a 12 month low of $76.48 and a 12 month high of $182.50. The stock has a market capitalization of $279.58 billion, a price-to-earnings ratio of 64.22, a price-to-earnings-growth ratio of 2.07 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released 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). Advanced Micro Devices had a return on equity of 7.54% and a net margin of 9.57%. The firm had revenue of $7.69 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same quarter in the previous year, the firm earned $0.69 EPS. The company's revenue was up 31.7% compared to the same quarter last year. Sell-side analysts forecast that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

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