Welch & Forbes LLC Sells 1,183 Shares of Advanced Micro Devices, Inc. $AMD

Key Points

• Welch & Forbes cut its AMD stake by 27.6% in the third quarter, selling 1,183 shares and retaining 3,105 shares valued at about $1.9 million.
• AMD reported quarterly earnings of $2.09 per share, beating the $1.95 consensus, while revenue of $13.38 billion exceeded estimates and rose 44.7% year over year.
• Analysts hold a “Moderate Buy” consensus rating, with an average price target of $642.47. The article also flags risks from AMD’s high valuation, declining free cash flow and rising inventory.

Welch & Forbes LLC lowered its position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) by 27.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 3,105 shares of the semiconductor manufacturer's stock after selling 1,183 shares during the quarter. Welch & Forbes LLC's holdings in Advanced Micro Devices were worth $1,900,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of AMD. DecisionPoint Financial LLC grew its stake in Advanced Micro Devices by 79.2% during the third quarter. DecisionPoint Financial LLC now owns 43 shares of the semiconductor manufacturer's stock worth $26,000 after purchasing an additional 19 shares during the period. MJT & Associates Financial Advisory Group Inc. bought a new stake in Advanced Micro Devices in the third quarter worth approximately $29,000. JNBA Financial Advisors increased its holdings in Advanced Micro Devices by 142.9% in the second quarter. JNBA Financial Advisors now owns 51 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 30 shares in the last quarter. Downshift Financial LLC lifted its stake in Advanced Micro Devices by 850.0% in the third quarter. Downshift Financial LLC now owns 57 shares of the semiconductor manufacturer's stock valued at $35,000 after buying an additional 51 shares during the period. Finally, Sawyer & Company Inc acquired a new position in Advanced Micro Devices in the third quarter valued at approximately $37,000. 71.34% of the stock is currently owned by institutional investors and hedge funds.

Advanced Micro Devices Stock Up 1.3%

Shares of NASDAQ:AMD opened at $515.21 on Wednesday. The business's 50 day simple moving average is $548.56 and its two-hundred day simple moving average is $417.58. The firm has a market cap of $844.99 billion, a P/E ratio of 112.00, a PEG ratio of 4.90 and a beta of 2.49. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.93 and a current ratio of 2.72. Advanced Micro Devices, Inc. has a 52-week low of $188.22 and a 52-week high of $658.52.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last announced its quarterly earnings data on Tuesday, November 3rd. The semiconductor manufacturer reported $2.09 EPS for the quarter, beating analysts' consensus estimates of $1.95 by $0.14. The firm had revenue of $13.38 billion during the quarter, compared to analysts' expectations of $13.10 billion. Advanced Micro Devices had a return on equity of 14.15% and a net margin of 16.77%. The company's revenue for the quarter was up 44.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.20 earnings per share. As a group, research analysts forecast that Advanced Micro Devices, Inc. will post 6.93 EPS for the current fiscal year.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Reports that AMD plans to invest $2.5 billion in Anthropic added to optimism about its AI strategy and commercial ties. The news comes alongside reports that AMD is among companies participating in a broader Anthropic share purchase. Article: Stock Market Today, Nov. 10: AMD Rises on Plan to Invest $2.5 Billion in Anthropic
• Positive Sentiment: AMD’s data-center sales grew 97% in the third quarter, driven by EPYC server CPUs and the MI450 launch. The company sees substantial long-term markets for server CPUs and GPUs, while a new generation of EPYC processors is shipping through server partners. Article: 2 Reasons AMD Can Still Outperform by 2030 Article: AMD Showcases 6th Gen AMD EPYC Processors
• Positive Sentiment: Oppenheimer’s Outperform rating and $600 price target, along with sharply higher earnings estimates from Northland Securities, reinforce expectations for strong growth. Article: Oppenheimer Just Set a Whopping $600 Target on AMD Stock
• Neutral Sentiment: AMD shares have benefited from Nvidia-related uncertainty, but analysts caution that investor money moving between chip stocks is not the same as customers switching suppliers. A lasting gain depends on winning and retaining business. Article: AMD’s Stock Fades as Investors Weigh Whether Nvidia’s Turmoil Will Mean Lasting Wins
• Negative Sentiment: Some coverage flags declining free cash flow and rising inventory as risks. AMD’s rich valuation may leave less room for disappointment if its coming results do not confirm that AI demand is converting into healthy cash generation. Article: Here’s The AMD Data Center Number Investors Need to Know

Wall Street Analysts Forecast Growth

AMD has been the topic of a number of research analyst reports. Argus increased their price target on Advanced Micro Devices from $450.00 to $625.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Sanford C. Bernstein reiterated an "outperform" rating on shares of Advanced Micro Devices in a research note on Wednesday, November 4th. Oppenheimer upgraded shares of Advanced Micro Devices from a "market perform" rating to an "outperform" rating and set a $600.00 price objective for the company in a research note on Monday. CLSA reiterated an "outperform" rating and set a $710.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, September 9th. Finally, Mizuho cut their target price on shares of Advanced Micro Devices from $705.00 to $610.00 and set an "outperform" rating on the stock in a research note on Wednesday, November 4th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $642.47.

Insider Buying and Selling

In related news, CEO Lisa Su sold 70,000 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the transaction, the chief executive officer directly owned 3,032,156 shares in the company, valued at $1,536,696,660.80. This trade represents a 2.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Norrod sold 17,262 shares of Advanced Micro Devices stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the sale, the executive vice president directly owned 353,317 shares of the company's stock, valued at approximately $191,038,501.90. The trade was a 4.66% 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 230,957 shares of company stock worth $114,799,511 over the last quarter. Corporate insiders own 0.50% of the company's stock.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc. (AMD) is a semiconductor company that designs processors, graphics products and adaptive computing solutions. Its products serve data center, personal computing, gaming, embedded and other markets. AMD is a fabless chip designer, relying on third-party manufacturing partners to produce its semiconductors. The company's product portfolio includes EPYC server processors, Ryzen desktop and laptop processors, Radeon graphics products, Instinct accelerators for data center computing, and adaptive chips and systems used in embedded applications.

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