Advanced Micro Devices Shares Decline Following Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD – Get Free Report) saw its stock price drop by 1.4% on Tuesday. This decline followed an announcement from KeyCorp, which reduced its price target for the stock from $220.00 to $150.00. Despite this change in target, KeyCorp maintains an overweight rating on AMD’s shares.

During the trading session, AMD shares hit a low of $115.50 before closing at $115.65. The volume of trading was approximately 13,605,598 shares, which is significantly lower than the average daily volume of 39,382,988 shares, representing a decline of 65%. The previous close for the stock was recorded at $117.32.

Several other research analysts have shared their insights recently. For instance, TD Cowen also lowered its price target for AMD from $185.00 to $150.00 while maintaining a buy rating. Citigroup made a similar adjustment, lowering its price target from $210.00 to $200.00 with a buy rating. On the other hand, Roth MKM reaffirmed a buy rating and set a new target of $200.00 on October 11th. Piper Sandler had an overweight rating and marked a new target of $180.00, down from $200.00, while Morgan Stanley adjusted its target from $169.00 to $158.00, giving it an equal weight rating. Overall, two analysts have rated the stock as a sell, five as hold, twenty-two as buy, and two as strong buy. According to MarketBeat, AMD holds an average rating of ‘Moderate Buy’ with a target price around $179.68.

Insider Activity

In addition to analyst ratings, one noteworthy transaction involved AMD’s CEO, Lisa T. Su, who sold 76,496 shares on December 4th for an average price of $142.66, totaling approximately $10.91 million. After this transaction, she retains ownership of 3,566,762 shares, valued at around $508.83 million, marking a 2.10% decrease in her holdings. This transaction was disclosed in a filing with the SEC. Furthermore, EVP Forrest Eugene Norrod sold 40,540 shares on November 5th at an average of $141.67 for a total of about $5.74 million. Following this sale, Norrod now owns 293,347 shares worth around $41.56 million, reflecting a 12.14% decrease in his position. Over the past three months, insiders have sold a total of 197,036 shares totaling $28.17 million, and corporate insiders collectively own about 0.73% of the company’s stock.

Investor Movement in AMD

Hedge funds have shown interest in AMD recently, with several large investors adjusting their positions. Christopher J. Hasenberg Inc increased its stake in AMD by 12%, now holding 560 shares valued at $97,000 after acquiring 60 additional shares in the last quarter. Similarly, Wealth Effects LLC added 0.7% more to its holdings, bringing its total to 9,419 shares valued at $1.55 million after acquiring 65 shares. Jacobsen Capital Management boosted its stakes by 2.1% to own 3,378 shares worth $554,000 after acquiring 70 more shares in the last quarter. Sigma Investment Counselors Inc expanded its ownership by 5.3% to hold 1,482 shares worth $243,000 after purchasing 74 additional shares. Lastly, Bedell Frazier Investment Counselling LLC increased its holdings by 4.3% to 1,780 shares worth $292,000, also purchasing 74 additional shares in this period. Overall, institutional investors own approximately 71.34% of AMD’s stock.

Advanced Micro Devices Performance Overview

The stock exhibits a 50-day simple moving average of $131.60 and a 200-day simple moving average of $145.95. The company’s market capitalization stands at $194.67 billion, with a PE ratio of 108.07 and a price-to-earnings growth ratio of 1.88. Furthermore, AMD reports a quick ratio of 1.78, a current ratio of 2.50, and a debt-to-equity ratio of 0.03.

AMD last released its quarterly earnings on October 29th, revealing earnings per share (EPS) of $0.92, in line with analysts' expectations. The company reported revenues of $6.82 billion for that quarter, surpassing the estimates of $6.71 billion. AMD's return on equity was recorded at 6.62%, with a net margin of 7.52%. This marks a 17.6% increase in quarterly revenue compared to the same quarter last year, where it posted EPS of $0.53. Analysts forecast an EPS of 2.54 for the ongoing fiscal year.

Company Overview

Advanced Micro Devices, Inc. is a global semiconductor company involved in manufacturing and selling various products. Its operations are divided into segments including Data Center, Client, Gaming, and Embedded. The company specializes in x86 microprocessors, graphics processing units (GPUs), chipsets, embedded processors, and semi-custom system-on-chip (SoC) products.

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