Susquehanna Lowers Target Price for Advanced Micro Devices (NASDAQ:AMD) Stock

Advanced Micro Devices, Inc. (NASDAQ:AMD) has recently been the subject of updated target price forecasts from various financial analysts. In a research note published on Wednesday, Susquehanna announced a reduction in its target price from $165.00 to $150.00. Despite this lower target, Susquehanna maintains a positive rating on AMD’s stock, indicating continued confidence in the company.

In addition to Susquehanna, other brokerages have also issued their assessments regarding AMD's stock. Wells Fargo & Company has lowered their price target from $165.00 to $140.00 while rating the stock as “overweight.” StockNews.com took a more critical approach, downgrading AMD from a “hold” rating to a “sell” rating, highlighting a shift in sentiment towards the semiconductor manufacturer.

On a more optimistic note, Rosenblatt Securities reiterated a “buy” rating for AMD, setting a price objective of $250.00. Benchmark also adjusted their target price by reducing it from $200.00 to $170.00 but continued to rate the stock as a “buy.” Similarly, UBS Group updated their price goal from $210.00 to $205.00, maintaining a “buy” rating.

Overall, analysts appear divided in their views on AMD. Currently, there are two analysts rating the stock as a “sell,” ten with a “hold,” eighteen issuing a “buy,” and two giving it a “strong buy” rating. According to MarketBeat, AMD’s stock carries a consensus rating of “Moderate Buy” with an average price target of $158.70.

Current Stock Performance

As of Wednesday, Advanced Micro Devices shares opened at $107.56. The company has a current ratio of 2.50, a quick ratio of 1.78, and a very low debt-to-equity ratio of 0.03. The current market capitalization for AMD stands at approximately $174.55 billion with a PE ratio of 96.90. The company's fifty-day simple moving average is noted at $124.01, while the 200-day simple moving average is at $140.18. AMD's stock has fluctuated significantly, with a fifty-two week low at $106.50 and a high of $227.30.

Recent Earnings Announcement

On February 4th, AMD released its quarterly earnings report. The company reported earnings of $0.88 per share, which fell short of analyst expectations that had set the consensus at $1.07, resulting in a $0.19 miss. The return on equity for Advanced Micro Devices is measured at 6.62%, with a net margin of 7.52%. Analysts predict that AMD will achieve an earnings per share of approximately 2.54 for the current fiscal year.

Insider Sales Activity

In other news within the company, CEO Lisa T. Su sold a considerable amount of stock on December 4th. She offloaded 76,496 shares at an average price of $142.66, bringing the total transaction value to approximately $10.91 million. Despite the sale, Su retains a substantial ownership of 3,566,762 shares worth around $508.83 million, representing a slight decrease in her stake by 2.10%. This transaction was reported to the Securities and Exchange Commission (SEC) and can be found in their legal filings.

Institutional Investor Trends

Institutional investors have also made changes to their investments in AMD. Creative Capital Management Investments LLC reported a significant increase in its AMD holdings by 124.6% during the third quarter, acquiring 155 shares valued at approximately $25,000. Other firms, such as Bear Mountain Capital Inc. and Global Wealth Strategies & Associates, have also established new positions in AMD during the fourth quarter. Currently, about 71.34% of AMD's shares are held by institutional investors and hedge funds, underscoring strong institutional interest in the company.

Overview of Advanced Micro Devices

Advanced Micro Devices operates as a leading semiconductor company on a global scale. The business is segmented into various areas including Data Center, Client, Gaming, and Embedded markets. AMD provides a diverse range of products, including x86 microprocessors and graphics processing units (GPUs), along with customized chips and development services for advanced computing solutions.

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