Goldman Sachs Group Inc. Grows Stake in Advanced Micro Devices, Inc. (NASDAQ:AMD)

Key Points

• Goldman Sachs Group Inc. increased its holdings in Advanced Micro Devices (AMD) by 169.7%, now owning approximately 9.86 million shares valued at over $1 billion.
• Several institutional investors, including Toronto Dominion Bank and Kovitz Investment Group, significantly increased their positions in AMD during the past quarters, indicating strong interest in the semiconductor manufacturer.
• AMD's latest quarterly earnings report showed a revenue of $7.69 billion, a 31.7% increase year-over-year, although it fell short of EPS expectations, posting $0.48 compared to the $0.54 forecast.

Goldman Sachs Group Inc. increased its holdings in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 169.7% in the first quarter, according to its most recent filing with the SEC. The fund owned 9,855,341 shares of the semiconductor manufacturer's stock after acquiring an additional 6,200,850 shares during the period. Goldman Sachs Group Inc. owned about 0.61% of Advanced Micro Devices worth $1,012,538,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Greenline Partners LLC acquired a new position in Advanced Micro Devices during the 4th quarter valued at about $28,000. Mpwm Advisory Solutions LLC acquired a new position in Advanced Micro Devices in the fourth quarter valued at approximately $30,000. Farmers & Merchants Trust Co of Chambersburg PA increased its holdings in Advanced Micro Devices by 277.8% in the first quarter. Farmers & Merchants Trust Co of Chambersburg PA now owns 272 shares of the semiconductor manufacturer's stock valued at $28,000 after buying an additional 200 shares in the last quarter. American Capital Advisory LLC grew its holdings in Advanced Micro Devices by 90.3% in the first 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 during the period. Finally, Investors Research Corp grew its position in shares of Advanced Micro Devices by 117.9% in the first quarter. Investors Research Corp now owns 305 shares of the semiconductor manufacturer's stock valued at $31,000 after purchasing an additional 165 shares during the period. 71.34% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on AMD shares. Bank of America boosted their target price on shares of Advanced Micro Devices from $175.00 to $200.00 and gave the company a "buy" rating in a report on Tuesday, July 29th. Truist Financial boosted their price objective on Advanced Micro Devices from $111.00 to $173.00 and gave the company a "hold" rating in a report on Wednesday. DZ Bank downgraded shares of Advanced Micro Devices from a "buy" rating to a "sell" rating and set a $150.00 price target for the company. in a research note on Wednesday, July 30th. The Goldman Sachs Group raised Advanced Micro Devices to a "hold" rating and set a $140.00 target price on the stock in a report on Thursday, July 10th. Finally, Sanford C. Bernstein boosted their price objective on Advanced Micro Devices from $95.00 to $140.00 and gave the company a "market perform" rating in a research note on Monday, July 21st. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating, twenty-three have issued a buy rating and four have assigned a strong buy rating to the company. According to MarketBeat.com, Advanced Micro Devices has a consensus rating of "Moderate Buy" and an average price target of $178.09.

Insider Buying and Selling

In related news, EVP Mark D. Papermaster sold 17,998 shares of the business's stock in a transaction dated 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 owned 1,713,710 shares in the company, valued at $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.06% of the stock is currently owned by corporate insiders.

Advanced Micro Devices Price Performance

Shares of NASDAQ:AMD traded down $11.19 during trading on Wednesday, reaching $163.12. 132,642,918 shares of the company traded hands, compared to its average volume of 60,340,328. The company has a quick ratio of 1.97, a current ratio of 2.80 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $264.48 billion, a PE ratio of 93.75, a PEG ratio of 2.31 and a beta of 1.94. The company's 50 day moving average is $142.11 and its two-hundred day moving average is $117.55. Advanced Micro Devices, Inc. has a 52 week low of $76.48 and a 52 week high of $182.50.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.06). The company had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.41 billion. Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.61%. The company's revenue for the quarter was up 31.7% on a year-over-year basis. During the same period last year, the firm posted $0.69 earnings per share. As a group, sell-side analysts predict that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Advanced Micro Devices declared that its board has authorized a share repurchase plan on Wednesday, May 14th that permits the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to reacquire up to 3.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its shares are undervalued.

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.