Zuckerman Investment Group LLC Takes Position in Advanced Micro Devices, Inc. $AMD

Key Points

• Zuckerman Investment Group LLC has acquired a new position in Advanced Micro Devices (AMD), purchasing 7,527 shares valued at approximately $773,000 in the first quarter of 2023.
• Vanguard Group Inc. has increased its stake in AMD by 1.4%, now holding over 152 million shares worth approximately $15.65 billion, while other institutional investors like UBS and Northern Trust also increased their holdings.
• AMD reported a missed earnings per share (EPS) of $0.48 for the last quarter, falling short of the $0.54 estimated by analysts, despite posting a year-over-year revenue increase of 31.7% to $7.69 billion.

Zuckerman Investment Group LLC bought a new position in shares of Advanced Micro Devices, Inc. (NASDAQ:AMD - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 7,527 shares of the semiconductor manufacturer's stock, valued at approximately $773,000.

A number of other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Advanced Micro Devices by 1.4% during 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 in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Advanced Micro Devices by 9.9% during 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 in the last quarter. Northern Trust Corp grew its position in Advanced Micro Devices by 20.1% during 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 in the last quarter. Invesco Ltd. grew its position in Advanced Micro Devices by 4.0% during 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 in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in Advanced Micro Devices by 4.6% during 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 in the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Price Performance

AMD opened at $168.7880 on Tuesday. The company has a fifty day moving average price of $156.22 and a two-hundred day moving average price of $122.55. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.81 and a current ratio of 2.49. Advanced Micro Devices, Inc. has a 52 week low of $76.48 and a 52 week high of $186.65. The firm has a market capitalization of $273.92 billion, a PE ratio of 93.89, a P/E/G ratio of 1.98 and a beta of 1.94.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) last released its earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 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 analyst estimates of $7.41 billion. During the same period in the prior year, the firm posted $0.69 EPS. Advanced Micro Devices's revenue was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current year.

Advanced Micro Devices announced that its Board of Directors has approved a stock repurchase program on Wednesday, May 14th that allows the company to buyback $6.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to repurchase up to 3.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 225,000 shares of the business's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $163.97, for a total value of $36,893,250.00. Following the sale, the chief executive officer directly owned 3,359,748 shares of the company's stock, valued at approximately $550,897,879.56. The trade was a 6.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Mark D. Papermaster sold 17,998 shares of the business's stock in a transaction on 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 completion of the sale, the executive vice president directly owned 1,713,710 shares in the company, valued at $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 252,998 shares of company stock valued at $41,415,580. 0.06% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on AMD shares. Melius upgraded shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 price target for the company in a research note on Monday, June 23rd. Sanford C. Bernstein raised their price target on shares of Advanced Micro Devices from $95.00 to $140.00 and gave the stock a "market perform" rating in a research note on Monday, July 21st. Morgan Stanley cut their price target on shares of Advanced Micro Devices from $185.00 to $168.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 6th. Melius Research upgraded shares of Advanced Micro Devices from a "hold" rating to a "strong-buy" rating and raised their price target for the stock from $110.00 to $175.00 in a research note on Monday, June 23rd. Finally, Wells Fargo & Company raised their price target on shares of Advanced Micro Devices from $120.00 to $185.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 16th. Four investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $181.33.

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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