Advanced Micro Devices (NASDAQ:AMD) Given New $195.00 Price Target at TD Cowen

Key Points

• TD Cowen has raised its price target for Advanced Micro Devices (AMD) from $165.00 to $195.00, maintaining a "buy" rating, suggesting a potential upside of 11.87% from the current stock price.
• AMD reported earnings of $0.48 per share, missing the consensus estimate of $0.54, while revenue reached $7.69 billion, exceeding the expected $7.41 billion.
• The company has authorized a $6 billion stock repurchase program, indicating management's belief that the stock is undervalued.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price target raised by investment analysts at TD Cowen from $165.00 to $195.00 in a report issued on Wednesday, MarketBeat Ratings reports. The brokerage currently has a "buy" rating on the semiconductor manufacturer's stock. TD Cowen's target price points to a potential upside of 12.87% from the company's current price.

AMD has been the topic of several other reports. Citigroup raised their target price on shares of Advanced Micro Devices from $145.00 to $165.00 and gave the company a "neutral" rating in a report on Friday, July 18th. Robert W. Baird reduced their price target on shares of Advanced Micro Devices from $175.00 to $140.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 7th. Susquehanna boosted their price objective on shares of Advanced Micro Devices from $135.00 to $210.00 and gave the company a "positive" rating in a research report on Wednesday, July 30th. Rosenblatt Securities restated a "buy" rating and set a $200.00 target price on shares of Advanced Micro Devices in a research note on Friday, June 13th. Finally, The Goldman Sachs Group upgraded Advanced Micro Devices to a "hold" rating and set a $140.00 price target on the stock in a research note on Thursday, July 10th. Thirteen investment analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and four have issued a strong buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $178.56.

Advanced Micro Devices Price Performance

NASDAQ:AMD traded up $0.36 during trading hours on Wednesday, reaching $172.76. 68,723,246 shares of the company were exchanged, compared to its average volume of 46,154,086. The business has a 50 day moving average of $143.30 and a 200 day moving average of $117.90. Advanced Micro Devices has a 1-year low of $76.48 and a 1-year high of $182.50. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.49 and a quick ratio of 1.97. The company has a market capitalization of $280.11 billion, a P/E ratio of 99.29, a P/E/G ratio of 2.15 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 earnings per share (EPS) for the quarter, missing the consensus estimate 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 company had revenue of $7.69 billion for the quarter, compared to analyst estimates of $7.41 billion. During the same period last year, the company posted $0.69 earnings per share. The business's revenue for the quarter was up 31.7% compared to the same quarter last year. Research analysts forecast that Advanced Micro Devices will post 3.87 EPS for the current year.

Advanced Micro Devices declared that its board has initiated a stock repurchase program on Wednesday, May 14th that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to reacquire up to 3.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insider Activity

In other news, EVP Mark D. Papermaster sold 17,998 shares of the company's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $155.03, for a total value of $2,790,229.94. Following the sale, the executive vice president directly owned 1,713,710 shares of the company's stock, valued at approximately $265,676,461.30. This 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. Company insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its holdings in Advanced Micro Devices by 178.2% during the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer's stock worth $5,551,000 after buying an additional 29,438 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Advanced Micro Devices by 2.9% in the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer's stock worth $1,001,000 after acquiring an additional 234 shares during the last quarter. Bank Pictet & Cie Europe AG lifted its position in Advanced Micro Devices by 12.7% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer's stock valued at $31,958,000 after acquiring an additional 29,825 shares in the last quarter. Grantham Mayo Van Otterloo & Co. LLC boosted its stake in Advanced Micro Devices by 15.3% during the 4th quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 8,894 shares of the semiconductor manufacturer's stock valued at $1,074,000 after purchasing an additional 1,181 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd boosted its stake in Advanced Micro Devices by 2,744.4% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 768 shares of the semiconductor manufacturer's stock valued at $93,000 after purchasing an additional 741 shares during the last quarter. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Company Profile

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.