Advanced Micro Devices (NASDAQ:AMD) Reaches New 52-Week Low - Should You Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) saw its shares hit a new 52-week low during midday trading on Thursday. The stock dropped to $120.43 and later traded at $121.41, with a trading volume of approximately 49,394,848 shares. In comparison, the stock had closed at $125.02 the previous day.

Wall Street Analysts Forecast Growth

AMD has been featured in several recent research reports. Roth MKM reiterated a "buy" rating and set a target price of $200.00 on AMD shares in a report on October 11. Cantor Fitzgerald also maintained an "overweight" rating with a price objective of $180.00 on October 30. UBS Group lowered its price target from $210.00 to $205.00 while still rating the stock as a "buy." Evercore ISI increased their target for AMD from $193.00 to $198.00 and rated it "outperform" on the same day. Meanwhile, Mizuho cut their price target from $185.00 to $180.00, also giving a rating of "outperform." Among analysts, one has issued a sell rating, four have advised holding, while twenty-six have given a buy rating. Currently, the consensus rating is "Moderate Buy" with an average price target of $192.36 according to MarketBeat.com.

Advanced Micro Devices Price Performance

AMD has a market capitalization of $197.02 billion, a price-to-earnings ratio of 109.38, and a PEG ratio of 1.88. The company also has a beta of 1.65 and a current ratio of 2.50. Its quick ratio stands at 1.78 and it holds a low debt-to-equity ratio of 0.03. AMD’s 50-day moving average price is $143.88, while the 200-day moving average price is $151.14. On October 29, AMD reported its earnings, matching consensus estimates with earnings of $0.92 per share for the quarter. The company’s return on equity was 6.62%, with a net margin of 7.52%. Revenue reached $6.82 billion, exceeding analyst expectations of $6.71 billion. This marked a 17.6% increase in revenue from the same time last year, and analysts forecast an EPS of 2.54 for the current fiscal year.

Insider Buying and Selling at Advanced Micro Devices

In related news, CEO Lisa T. Su sold 80,000 shares of AMD on November 6 at an average price of $143.87, totaling about $11.51 million. Following this transaction, she now owns 3,566,762 shares valued at approximately $513 million, representing a 2.19% decrease in her overall holdings. EVP Forrest Eugene Norrod also sold 40,540 shares on November 5, with a total value of about $5.74 million. These insider sales amount to 197,036 shares worth approximately $28.17 million over the last ninety days. Insiders currently hold 0.73% of the company's stock.

Institutional Inflows and Outflows

Recently, institutional investors have increased or decreased their stakes in AMD. Charles Schwab Investment Management Inc. boosted its stake by 1.9% during the third quarter, now owning nearly 9.66 million shares valued at about $1.58 billion. The Swiss National Bank also increased its position by 0.3%, owning nearly 4.80 million shares valued at approximately $787 million. Some institutions have established new positions, such as Shum Financial Group Inc., which bought shares valued around $858,000. Geode Capital Management raised its holdings by 1.3%, now possessing over 34.24 million shares. State Street Corp also increased its stake by 2.3% to approximately 70.17 million shares, valued at $11.51 billion. Currently, institutional investors own about 71.34% of AMD shares.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a global semiconductor company, with segments focusing on Data Center, Client, Gaming, and Embedded markets. It offers a range of products including x86 microprocessors, graphics processing units (GPUs), and various technology solutions for data processing.

Further Insights

Investing in AMD is a decision that requires careful analysis, especially in the context of its recent stock performance. While the stock has hit new lows, analysts continue to show long-term optimism for the company. Whether this is a good time to buy or sell depends on individual risk tolerance and investment strategy.

This article aims to provide a balanced view of Advanced Micro Devices, highlighting recent developments and analyst sentiments. Investing in any stock comes with risks, and potential investors should consider their own circumstances before making decisions.

AMD, Stocks, Investment