Advanced Micro Devices (NASDAQ:AMD) Stock Falls 2% After Insider Selling

On December 11, 2024, shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) experienced a decline of 2% during the trading session. The stock dipped to a low of $137.40 before ultimately trading at $138.59. During this mid-day trading, a total of 33,576,839 shares exchanged hands, which is an increase of 18% compared to the average trading volume of 28,523,388 shares. The previous closing price was $141.36.

The drop in stock price followed significant insider selling, particularly by CEO Lisa T. Su, who sold 76,496 shares on December 4th at an average price of $142.66, amounting to a total sale value of approximately $10.9 million. After this transaction, Su continues to hold 3,566,762 shares, valued at about $508.8 million, marking a decrease of 2.10% in her stake. This transaction was disclosed in a filing with the Securities and Exchange Commission.

Analyst Rating Updates

Recent comments from equities research analysts revealed mixed opinions on Advanced Micro Devices. UBS Group revised their target price from $210.00 to $205.00 and maintained a "buy" rating on the stock as of October 30th. Roth MKM also reaffirmed their "buy" rating, setting a target price at $200.00. Mizuho, on the other hand, lowered their price target from $185.00 to $180.00 while maintaining an "outperform" rating on December 5th. Evercore ISI increased their target price from $193.00 to $198.00, giving the company an "outperform" assessment. Conversely, Bank of America changed their rating from "buy" to "neutral" and reduced the price target from $180.00 to $155.00. Overall, the consensus rating for Advanced Micro Devices is classified as a "Moderate Buy" with an average price target of $192.36, with one analyst rating it a sell, four as hold, twenty-six as buy, and one as strong buy.

Market Performance Overview

Currently, Advanced Micro Devices has a market capitalization of $207.30 billion, a PE ratio of 115.08, a PEG ratio of 1.91, and a beta of 1.66. The stock's fifty-day moving average stands at $149.48, while the 200-day moving average is $153.01. The company boasts a debt-to-equity ratio of 0.03, a quick ratio of 1.78, and a current ratio of 2.50.

The company's most recent earnings report was announced on October 29th, where it posted earnings per share (EPS) of $0.92, aligning with analyst expectations. The revenue for that quarter was $6.82 billion, surpassing the $6.71 billion estimate set by analysts. Notably, Advanced Micro Devices achieved a net margin of 7.52% and a return on equity of 6.62%, with quarterly revenue increasing by 17.6% compared to the same period from the previous year.

Institutional Investment Trends

Institutional trading saw various hedge funds and investors adjusting their positions in Advanced Micro Devices. Creative Capital Management Investments LLC expanded its stake by 124.6% in the third quarter, owning a total of 155 shares now valued at $25,000 after an acquisition of 86 additional shares. ZRC Wealth Management LLC increased its position by 90.4%, now holding 158 shares valued at $26,000 after a purchase of 75 shares. Additionally, Morton Brown Family Wealth LLC raised its stake by 94.4% in the second quarter, and Fairway Wealth LLC established a new stake valued at $27,000. Roughly 71.34% of AMD stock is held by hedge funds and institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc. is a global semiconductor company that operates across several segments such as Data Center, Client, Gaming, and Embedded. The company is known for its production of x86 microprocessors, graphics processing units (GPUs), accelerated processing units (APUs), chipsets, and embedded processors, among others.

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