Jefferies Financial Group Inc. Raises Stake in Advanced Micro Devices, Inc. $AMD

Key Points

• Jefferies Financial Group sharply increased its AMD stake in the fourth quarter, lifting holdings by 6,228.8% to 308,021 shares valued at about $66 million.
• Institutional ownership remains very high, with hedge funds and other investors holding 71.34% of AMD shares. Several large firms, including Vanguard and State Street, also added to their positions.
• Analysts are increasingly bullish on AMD after its strong earnings and revenue beat, with multiple firms raising price targets; the consensus rating is Moderate Buy with an average target of $410.

Jefferies Financial Group Inc. lifted its position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 6,228.8% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 308,021 shares of the semiconductor manufacturer's stock after buying an additional 303,154 shares during the quarter. Jefferies Financial Group Inc.'s holdings in Advanced Micro Devices were worth $65,966,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of Advanced Micro Devices by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 158,522,860 shares of the semiconductor manufacturer's stock worth $33,949,256,000 after buying an additional 2,525,109 shares in the last quarter. State Street Corp grew its holdings in shares of Advanced Micro Devices by 2.4% during the third quarter. State Street Corp now owns 73,824,441 shares of the semiconductor manufacturer's stock worth $11,944,056,000 after buying an additional 1,755,182 shares in the last quarter. Amundi grew its holdings in shares of Advanced Micro Devices by 17.5% during the third quarter. Amundi now owns 13,486,227 shares of the semiconductor manufacturer's stock worth $2,181,937,000 after buying an additional 2,012,865 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Advanced Micro Devices by 6.5% during the third quarter. Invesco Ltd. now owns 13,348,413 shares of the semiconductor manufacturer's stock worth $2,159,640,000 after buying an additional 813,844 shares in the last quarter. Finally, Legal & General Group Plc grew its holdings in shares of Advanced Micro Devices by 1.7% during the third quarter. Legal & General Group Plc now owns 11,579,113 shares of the semiconductor manufacturer's stock worth $1,873,385,000 after buying an additional 191,590 shares in the last quarter. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Wells Fargo & Company lifted their price target on shares of Advanced Micro Devices from $345.00 to $505.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Sanford C. Bernstein upgraded shares of Advanced Micro Devices from a "market perform" rating to an "outperform" rating and lifted their price target for the stock from $265.00 to $525.00 in a report on Wednesday, May 6th. Stifel Nicolaus lifted their price target on shares of Advanced Micro Devices from $320.00 to $450.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Wall Street Zen upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a report on Monday, January 26th. Finally, Zacks Research upgraded shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $410.00.

Advanced Micro Devices Price Performance

Advanced Micro Devices stock opened at $467.51 on Friday. Advanced Micro Devices, Inc. has a 1 year low of $107.67 and a 1 year high of $481.41. The firm has a 50 day moving average price of $297.43 and a 200 day moving average price of $246.86. The company has a market cap of $762.32 billion, a price-to-earnings ratio of 153.28, a PEG ratio of 1.37 and a beta of 2.40. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.08. Advanced Micro Devices had a net margin of 13.37% and a return on equity of 9.55%. The firm had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same period in the previous year, the firm earned $0.96 earnings per share. Advanced Micro Devices's revenue was up 37.8% compared to the same quarter last year. Sell-side analysts predict that Advanced Micro Devices, Inc. will post 6.2 earnings per share for the current year.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,487 shares of Advanced Micro Devices stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the transaction, the executive vice president directly owned 324,527 shares of the company's stock, valued at $140,000,947.80. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 31,320 shares of Advanced Micro Devices stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the transaction, the executive vice president directly owned 1,236,037 shares in the company, valued at approximately $432,612,950. This trade represents a 2.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 329,085 shares of company stock valued at $114,051,007. 0.50% of the stock is currently owned by corporate insiders.

Advanced Micro Devices News Summary

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: CEO Lisa Su said AMD expects strong CPU growth over the next five years, helping fuel optimism about long-term demand for its data center chips. AMD Stock Rallies as Lisa Su Expects CPU Growth of ‘35% Each Year’ for the Next 5 Years
• Positive Sentiment: AMD began ramping production of its “Venice” EPYC CPUs on TSMC’s 2nm node, a major manufacturing milestone that supports its AI and server growth story. AMD Announces Production Ramp of Next-Generation AMD EPYC Processor “Venice” on TSMC 2nm Process Technology
• Positive Sentiment: AMD announced more than $10 billion of investment across Taiwan’s AI ecosystem to expand advanced packaging capacity and support future AI deployments, including the Helios rack-scale platform. AMD Announces More Than $10 Billion in Taiwan Ecosystem Investments to Accelerate AI Infrastructure
• Positive Sentiment: Nvidia’s strong AI commentary and broader chip-sector momentum are boosting confidence that AMD will benefit from continued AI infrastructure spending. AMD Stock (AMD) Hits All-Time High as Nvidia Earnings Boost Confidence in the AI Trade
• Neutral Sentiment: Some commentary suggests AMD’s sharp rally has already priced in a lot of good news, so investors may continue debating valuation after the recent run-up. After a Q1 Blowout and a Soaring Share Price, Is AMD Stock Still a Buy?

Advanced Micro Devices Profile

Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

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