Wedbush Increases Advanced Micro Devices (NASDAQ:AMD) Price Target to $190.00

Key Points

• Wedbush has increased the price target for Advanced Micro Devices (AMD) from $170.00 to $190.00, indicating a potential upside of 16.49% from the current stock price.
• Advanced Micro Devices reported $0.48 earnings per share in its latest quarterly earnings, missing estimates by $0.06, but saw a revenue increase of 31.7% compared to the previous year.
• The company has announced a stock repurchase plan allowing it to buy back up to $6.00 billion of its outstanding shares, signaling confidence in its valuation from the board.

Advanced Micro Devices (NASDAQ:AMD - Get Free Report) had its price objective boosted by equities research analysts at Wedbush from $170.00 to $190.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the semiconductor manufacturer's stock. Wedbush's price objective indicates a potential upside of 16.49% from the stock's current price.

Several other analysts have also commented on the stock. The Goldman Sachs Group raised shares of Advanced Micro Devices to a "hold" rating and set a $140.00 price target on the stock in a research report on Thursday, July 10th. Barclays lifted their price target on shares of Advanced Micro Devices from $110.00 to $130.00 and gave the company an "overweight" rating in a research report on Friday, May 16th. Citigroup lifted their price target on shares of Advanced Micro Devices from $145.00 to $165.00 and gave the company a "neutral" rating in a research report on Friday, July 18th. Stifel Nicolaus lifted their price target on shares of Advanced Micro Devices from $161.00 to $190.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, Melius raised shares of Advanced Micro Devices from a "hold" rating to a "buy" rating and set a $175.00 price target on the stock in a research report on Monday, June 23rd. One analyst has rated the stock with a sell rating, eleven have issued a hold rating, twenty-three have issued a buy rating and four have assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $175.77.

Advanced Micro Devices Price Performance

Shares of NASDAQ:AMD traded down $11.21 during trading on Wednesday, reaching $163.10. 100,271,173 shares of the company's stock traded hands, compared to its average volume of 45,423,676. Advanced Micro Devices has a fifty-two week low of $76.48 and a fifty-two week high of $182.50. The company has a quick ratio of 1.97, a current ratio of 2.80 and a debt-to-equity ratio of 0.06. The firm has a market cap of $264.46 billion, a PE ratio of 120.14, a P/E/G ratio of 2.34 and a beta of 1.94. The company has a 50-day simple moving average of $141.11 and a 200-day simple moving average of $117.23.

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 for the quarter, missing analysts' consensus estimates of $0.54 by ($0.06). The company had revenue of $7.69 billion during the quarter, compared to analysts' expectations of $7.41 billion. Advanced Micro Devices had a net margin of 8.03% and a return on equity of 8.30%. The company's quarterly revenue was up 31.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.69 earnings per share. As a group, analysts predict that Advanced Micro Devices will post 3.87 earnings per share for the current year.

Advanced Micro Devices announced that its board has approved a stock repurchase plan on Wednesday, May 14th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to purchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Advanced Micro Devices

In other news, EVP Mark D. Papermaster sold 17,998 shares of the stock in a transaction that occurred 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 in the company, valued at $265,676,461.30. This represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.06% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors and hedge funds have recently modified their holdings of AMD. Kingstone Capital Partners Texas LLC purchased a new position in Advanced Micro Devices during the second quarter worth approximately $958,422,000. Goldman Sachs Group Inc. raised its stake in Advanced Micro Devices by 169.7% during the first quarter. Goldman Sachs Group Inc. now owns 9,855,341 shares of the semiconductor manufacturer's stock worth $1,012,538,000 after purchasing an additional 6,200,850 shares during the period. T. Rowe Price Investment Management Inc. raised its stake in Advanced Micro Devices by 131.5% during the first quarter. T. Rowe Price Investment Management Inc. now owns 10,413,139 shares of the semiconductor manufacturer's stock worth $1,069,846,000 after purchasing an additional 5,915,185 shares during the period. Toronto Dominion Bank raised its stake in Advanced Micro Devices by 443.3% during the fourth quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer's stock worth $660,475,000 after purchasing an additional 4,461,609 shares during the period. Finally, Nuveen LLC purchased a new position in Advanced Micro Devices during the first quarter worth approximately $436,746,000. Hedge funds and other institutional investors own 71.34% of the company's stock.

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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