Nuveen LLC Buys Shares of 4,250,987 Advanced Micro Devices, Inc. (NASDAQ:AMD)

Key Points

• Nuveen LLC acquired 4,250,987 shares of Advanced Micro Devices, Inc. (AMD), valued at approximately $436.7 million, increasing its stake to 0.26% of the company.
• Bank of America and other firms have raised their price targets on AMD, with Bank of America now at $200 and Melius Research increasing to $175, indicating a strong outlook for the stock.
• Advanced Micro Devices has initiated a $6 billion share buyback plan, suggesting that management believes the stock is undervalued amidst its recent quarterly earnings report miss.

Nuveen LLC bought a new stake in Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 4,250,987 shares of the semiconductor manufacturer's stock, valued at approximately $436,746,000. Nuveen LLC owned 0.26% of Advanced Micro Devices as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently bought and sold shares of AMD. Vanguard Group Inc. raised its stake in shares of 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 worth $15,654,222,000 after buying an additional 2,157,199 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised 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 buying an additional 1,929,225 shares during the period. Northern Trust Corp raised its stake in shares of 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 worth $2,072,215,000 after buying an additional 2,874,012 shares during the period. Invesco Ltd. raised its stake in shares of Advanced Micro Devices by 4.0% in the first quarter. Invesco Ltd. now owns 11,819,012 shares of the semiconductor manufacturer's stock worth $1,214,285,000 after buying an additional 450,695 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Advanced Micro Devices by 4.6% in 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 buying an additional 466,048 shares during the period. Institutional investors own 71.34% of the company's stock.

Insider Buying and Selling

In other Advanced Micro Devices 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 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. This trade represents a 1.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.06% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on AMD. Bank of America increased their target price on Advanced Micro Devices from $175.00 to $200.00 and gave the stock a "buy" rating in a research report on Tuesday, July 29th. Melius Research upgraded Advanced Micro Devices from a "hold" rating to a "strong-buy" rating and increased their target price for the stock from $110.00 to $175.00 in a research report on Monday, June 23rd. Stifel Nicolaus increased their target price on Advanced Micro Devices from $161.00 to $190.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Benchmark increased their target price on Advanced Micro Devices from $170.00 to $210.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, TD Cowen increased their target price on Advanced Micro Devices from $165.00 to $195.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating, twenty-two have given a buy rating and four have given a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $178.56.

Advanced Micro Devices Price Performance

Shares of AMD stock opened at $172.76 on Monday. Advanced Micro Devices, Inc. has a 52-week low of $76.48 and a 52-week high of $182.50. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49. The firm has a market capitalization of $280.36 billion, a P/E ratio of 99.29, a P/E/G ratio of 2.07 and a beta of 1.94. The stock has a 50 day moving average price of $144.55 and a 200 day moving average price of $118.17.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share (EPS) 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 business had revenue of $7.69 billion for the quarter, compared to the consensus estimate of $7.41 billion. During the same period in the prior year, the business posted $0.69 earnings per share. Advanced Micro Devices's revenue was up 31.7% on a year-over-year basis. 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 of Directors has initiated a share buyback plan on Wednesday, May 14th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor manufacturer to repurchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is 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.

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