Cornerstone Advisors LLC Purchases 4,800 Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD)

Key Points

• Cornerstone Advisors LLC increased its holdings in Advanced Micro Devices, acquiring an additional 4,800 shares during the 1st quarter, bringing its total to 74,900 shares valued at approximately $7.7 million.
• The company's quarterly revenue was reported at $7.69 billion, exceeding estimates, but it missed earnings per share expectations at $0.48 compared to a projected $0.54.
• Advanced Micro Devices announced a $6 billion share buyback plan, indicating that the board believes the company’s stock is undervalued.

Cornerstone Advisors LLC lifted its holdings in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 6.8% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 74,900 shares of the semiconductor manufacturer's stock after acquiring an additional 4,800 shares during the quarter. Cornerstone Advisors LLC's holdings in Advanced Micro Devices were worth $7,695,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. Goldman Sachs Group Inc. increased its holdings in Advanced Micro Devices by 169.7% in the first quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock valued at $1,012,538,000 after buying an additional 6,200,850 shares during the last quarter. Toronto Dominion Bank increased its holdings in Advanced Micro Devices by 443.3% in the fourth quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock valued at $660,475,000 after buying an additional 4,461,609 shares during the last quarter. Kovitz Investment Group Partners LLC increased its holdings in Advanced Micro Devices by 2,265.5% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 3,017,294 shares of the semiconductor manufacturer's stock valued at $364,459,000 after buying an additional 2,889,739 shares during the last quarter. Northern Trust Corp increased its holdings in Advanced Micro Devices by 20.1% in the fourth quarter. Northern Trust Corp now owns 17,155,522 shares of the semiconductor manufacturer's stock valued at $2,072,215,000 after buying an additional 2,874,012 shares during the last quarter. Finally, Vanguard Group Inc. increased its holdings in Advanced Micro Devices by 1.4% in 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. 71.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on AMD. Mizuho boosted their price objective on Advanced Micro Devices from $152.00 to $175.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. 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 report on Wednesday. Stifel Nicolaus lifted their target price on Advanced Micro Devices from $161.00 to $190.00 and gave the company a "buy" rating in a research note on Wednesday. Wells Fargo & Company lifted their target price on Advanced Micro Devices from $120.00 to $185.00 and gave the company an "overweight" rating in a research note on Wednesday, July 16th. Finally, The Goldman Sachs Group upgraded Advanced Micro Devices to a "hold" rating and set a $140.00 target price for the company in a research note on Thursday, July 10th. Thirteen equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and four have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $178.56.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,998 shares of the business's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the transaction, the executive vice president directly owned 1,713,710 shares in the company, valued at $265,676,461.30. The trade was a 1.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.06% of the stock is currently owned by corporate insiders.

Advanced Micro Devices Stock Up 5.7%

Shares of Advanced Micro Devices stock traded up $9.28 on Thursday, hitting $172.40. 95,073,538 shares of the company traded hands, compared to its average volume of 65,171,756. The company has a 50-day moving average price of $143.30 and a 200 day moving average price of $117.90. The company has a quick ratio of 1.97, 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 company has a market cap of $279.53 billion, a PE ratio of 99.08, a PEG ratio of 2.15 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.06). Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company had revenue of $7.69 billion for the quarter, compared to analysts' expectations of $7.41 billion. During the same quarter in the prior year, the firm earned $0.69 earnings per share. The company's revenue was up 31.7% on a year-over-year basis. Sell-side analysts predict 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 initiated a share buyback program on Wednesday, May 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its stock is undervalued.

Advanced Micro Devices 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.