Palestra Capital Management LLC Makes New Investment in Advanced Micro Devices, Inc. $AMD

Key Points

• Palestra Capital Management initiated a sizable AMD position in the second quarter, purchasing 237,958 shares valued at approximately $138.2 million. AMD now represents about 4.7% of the fund’s portfolio and is its 10th-largest holding.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $553.72, despite one downgrade to “Underweight.” AMD recently beat quarterly earnings expectations, reporting $1.66 in EPS and $11.54 billion in revenue, up 50.1% year over year.
• Insiders have been selling shares: company executives sold 241,203 shares worth roughly $114 million over the past 90 days, though the disclosed transactions were conducted under pre-arranged Rule 10b5-1 trading plans.

Palestra Capital Management LLC bought a new stake in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund bought 237,958 shares of the semiconductor manufacturer's stock, valued at approximately $138,232,000. Advanced Micro Devices comprises approximately 4.7% of Palestra Capital Management LLC's portfolio, making the stock its 10th largest holding.

A number of other large investors also recently made changes to their positions in AMD. First National Bank of Hutchinson grew its stake in shares of Advanced Micro Devices by 0.4% during the second quarter. First National Bank of Hutchinson now owns 5,639 shares of the semiconductor manufacturer's stock worth $3,276,000 after purchasing an additional 22 shares during the period. Park Place Capital Corp lifted its stake in Advanced Micro Devices by 19.5% in the second quarter. Park Place Capital Corp now owns 141 shares of the semiconductor manufacturer's stock valued at $82,000 after buying an additional 23 shares during the period. Clal Insurance Enterprises Holdings Ltd boosted its holdings in Advanced Micro Devices by 12.8% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 212 shares of the semiconductor manufacturer's stock worth $43,000 after buying an additional 24 shares during the last quarter. Trust Co of the South boosted its holdings in Advanced Micro Devices by 1.5% during the second quarter. Trust Co of the South now owns 1,746 shares of the semiconductor manufacturer's stock worth $1,014,000 after buying an additional 25 shares during the last quarter. Finally, Beaird Harris Wealth Management LLC grew its position in shares of Advanced Micro Devices by 9.4% during the 2nd quarter. Beaird Harris Wealth Management LLC now owns 292 shares of the semiconductor manufacturer's stock worth $169,000 after buying an additional 25 shares during the period. Institutional investors and hedge funds own 71.34% of the company's stock.

Insider Buying and Selling

In other news, SVP Ava Hahn sold 2,993 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $488.69, for a total value of $1,462,649.17. Following the sale, the senior vice president owned 26,623 shares of the company's stock, valued at $13,010,393.87. The trade was a 10.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 17,261 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $459.95, for a total transaction of $7,939,196.95. Following the transaction, the executive vice president owned 373,317 shares of the company's stock, valued at $171,707,154.15. The trade was a 4.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 241,203 shares of company stock valued at $114,011,942 over the last ninety days. Insiders own 0.50% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on AMD shares. The Goldman Sachs Group upped their price target on Advanced Micro Devices from $450.00 to $640.00 and gave the company a "buy" rating in a research note on Monday, July 6th. Wedbush reissued an "outperform" rating and set a $600.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Bank of America boosted their price objective on shares of Advanced Micro Devices from $550.00 to $620.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Barclays lowered shares of Advanced Micro Devices from an "overweight" rating to an "underweight" rating in a report on Friday, June 12th. Finally, Wall Street Zen raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating in a research report on Saturday. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $553.72.

Advanced Micro Devices Price Performance

NASDAQ:AMD opened at $465.58 on Monday. The stock has a 50-day simple moving average of $505.66 and a 200 day simple moving average of $385.61. Advanced Micro Devices, Inc. has a 52-week low of $149.22 and a 52-week high of $584.73. The company has a market cap of $760.05 billion, a PE ratio of 119.69 and a beta of 2.48. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.91 and a current ratio of 2.61.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The firm had revenue of $11.54 billion for the quarter, compared to analysts' expectations of $11.31 billion. During the same quarter in the previous year, the business posted $0.48 EPS. The business's quarterly revenue was up 50.1% compared to the same quarter last year. On average, sell-side analysts expect that Advanced Micro Devices, Inc. will post 6.44 EPS for the current fiscal year.

More Advanced Micro Devices News

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

• Positive Sentiment: AI demand and product roadmap remain strong: AMD’s previously announced rack-scale platforms and server products are moving closer to deployment, supporting expectations for continued data-center growth. Recent results showed revenue up 50% year over year to $11.54 billion, while management guided to roughly $13 billion in third-quarter revenue. AMD stock ran its published roadmap
• Positive Sentiment: Strategic Nutanix partnership broadens AMD’s AI offering: AMD’s equity investment and joint development agreement with Nutanix could help deliver integrated, open AI inference systems that compete with Nvidia’s software-centric platform. AMD and Nutanix strategic partnership
• Neutral Sentiment: Analyst comparisons favor rivals on risk-reward: Commentary argues Broadcom offers better diversification and a lower valuation, while Nvidia’s stronger profitability, CUDA ecosystem and recent outperformance give it an advantage over AMD. These comparisons may limit enthusiasm despite AMD’s growth prospects. Broadcom versus AMD risk-reward comparison
• Negative Sentiment: Potential tariffs increase cost and supply-chain risk: Reports that the administration may extend semiconductor tariffs to products containing chips, including data-center servers, have raised concerns about higher costs and disrupted hardware supply chains. Why AMD stock is sliding
• Negative Sentiment: Profit-taking and selling activity weigh on sentiment: ARK Invest sold approximately $18 million of AMD shares while reallocating capital to Broadcom and Cerebras. AMD EVP Jean Hu also sold $7.1 million of stock under a pre-arranged Rule 10b5-1 plan, although she retained a substantial position. Cathie Wood sold AMD stock

About Advanced Micro Devices

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source