Federated Hermes Inc. Purchases 187,588 Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD)

Key Points

• Federated Hermes Inc. increased its stake in Advanced Micro Devices, Inc. by 69.2%, acquiring an additional 187,588 shares, bringing its total holdings to 458,743 shares valued at $47.13 million.
• Several other investment firms, including Toronto Dominion Bank, raised their holdings significantly in AMD during the last quarter, contributing to institutional investors owning 71.34% of the company's stock.
• AMD's share repurchase plan, initiated for $6 billion, indicates that the board believes the company's shares are undervalued, reflecting a positive outlook despite mixed analyst ratings and a current price target consensus of $162.94.

Federated Hermes Inc. grew its position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 69.2% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 458,743 shares of the semiconductor manufacturer's stock after acquiring an additional 187,588 shares during the period. Federated Hermes Inc.'s holdings in Advanced Micro Devices were worth $47,131,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of AMD. Toronto Dominion Bank raised its stake 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 worth $660,475,000 after buying an additional 4,461,609 shares in the last quarter. Nicolet Bankshares Inc. boosted its position in Advanced Micro Devices by 56.4% during the 4th quarter. Nicolet Bankshares Inc. now owns 3,523 shares of the semiconductor manufacturer's stock valued at $426,000 after acquiring an additional 1,271 shares in the last quarter. Bank Pictet & Cie Europe AG grew its holdings in shares of Advanced Micro Devices by 12.7% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock worth $31,958,000 after acquiring an additional 29,825 shares during the period. Heritage Trust Co bought a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $804,000. Finally, Valicenti Advisory Services Inc. raised its position in shares of Advanced Micro Devices by 4.0% in the 1st quarter. Valicenti Advisory Services Inc. now owns 76,826 shares of the semiconductor manufacturer's stock worth $7,893,000 after acquiring an additional 2,944 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Stock Performance

Advanced Micro Devices stock traded down $4.61 during mid-day trading on Friday, reaching $171.70. 74,927,695 shares of the stock traded hands, compared to its average volume of 53,158,520. Advanced Micro Devices, Inc. has a 12-month low of $76.48 and a 12-month high of $182.50. The business's 50-day moving average is $137.35 and its 200-day moving average is $116.10. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.80 and a quick ratio of 1.97. The stock has a market capitalization of $278.39 billion, a PE ratio of 126.25, a price-to-earnings-growth ratio of 2.33 and a beta of 1.94.

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

Advanced Micro Devices announced that its Board of Directors has approved a share repurchase program on Wednesday, May 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to buy up to 3.1% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, 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 value of $2,790,229.94. Following the transaction, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. This trade represents a 1.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.06% of the stock is currently owned by insiders.

Analyst Ratings Changes

AMD has been the subject of a number of research reports. Mizuho increased their price objective on Advanced Micro Devices from $152.00 to $175.00 and gave the stock an "outperform" rating in a report on Wednesday, July 16th. Dbs Bank downgraded shares of Advanced Micro Devices from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 8th. Bank of America lifted their price target on shares of Advanced Micro Devices from $175.00 to $200.00 and gave the company a "buy" rating in a research report on Tuesday. KeyCorp lowered shares of Advanced Micro Devices from an "overweight" rating to a "sector weight" rating in a research note on Tuesday, April 8th. Finally, Robert W. Baird decreased their target price on shares of 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. One analyst has rated the stock with a sell rating, ten have assigned a hold rating, twenty-three have given a buy rating and four have assigned a strong buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $162.94.

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.