Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 4.2% – Here’s Why

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) were down 4.2% during trading on Monday . The stock traded as low as $526.92 and last traded at $534.39. 22,816,317 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 36,991,375 shares. The stock had previously closed at $557.89.

Key Headlines Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Goldman Sachs, Bank of America, KeyBanc, and other analysts raised AMD price targets, reinforcing confidence in the company’s AI accelerator and server CPU growth story. Goldman Sachs Raises its Price Target on Advanced Micro Devices, Inc. (AMD)
• Positive Sentiment: Bank of America said AMD looks set for a beat-and-raise quarter, citing surging demand for EPYC CPUs and Instinct accelerators in AI servers. AMD Looks Set for a Beat-and-Raise Quarter on Surging AI Server Demand, According to BofA
• Positive Sentiment: Brokerage coverage turned more constructive around AMD’s AI and data center opportunity, with several reports calling out upside ahead of the company’s Aug. 4 earnings release. Why AMD (AMD) Stock Is Up Today
• Positive Sentiment: AMD also benefited from a broader rebound in semiconductor stocks as inflation and geopolitical worries eased, helping high-beta chip names recover after a selloff. Nvidia and AMD Stocks Rise on a Positive Shift in China’s AI Chips Scenario
• Neutral Sentiment: AMD remains in focus ahead of its late-July AI event and early-August earnings, which could be the next major catalyst for the stock. AMD climbs as fresh analyst target hikes boost AI optimism
• Negative Sentiment: Some recent trading and sentiment has been mixed, with insider sales and a prior session selloff showing that volatility remains high despite the bullish analyst tone. AMD Stock Drops 5%: Why Global Supply Chain Fears and Tech Profit-Taking Are Hurting Chip Giants

Analyst Ratings Changes

Several brokerages have recently issued reports on AMD. Needham & Company LLC upgraded Advanced Micro Devices to a “buy” rating in a research note on Wednesday, May 6th. Raymond James Financial assumed coverage on Advanced Micro Devices in a research note on Wednesday, May 6th. They set a “market perform” rating for the company. Roth Capital reaffirmed a “buy” rating and issued a $500.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, May 6th. Citigroup downgraded Advanced Micro Devices from a “buy” rating to a “market perform” rating in a research report on Friday, June 12th. Finally, Royal Bank Of Canada raised their target price on shares of Advanced Micro Devices from $325.00 to $400.00 and gave the company a “sector perform” rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $467.84.

Advanced Micro Devices Price Performance

The company has a current ratio of 2.72, a quick ratio of 1.96 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $893.78 billion, a price-to-earnings ratio of 179.72, a price-to-earnings-growth ratio of 1.57 and a beta of 2.47. The company’s 50 day moving average is $499.06 and its 200 day moving average is $324.25.

Advanced Micro Devices (NASDAQ:AMD) last posted its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.08. The business had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a return on equity of 9.55% and a net margin of 13.37%.The business’s quarterly revenue was up 37.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.96 EPS. Research analysts anticipate that Advanced Micro Devices, Inc. will post 6.18 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, Director Nora Denzel sold 8,626 shares of Advanced Micro Devices stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $522.00, for a total value of $4,502,772.00. Following the transaction, the director directly owned 87,173 shares in the company, valued at approximately $45,504,306. The trade was a 9.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Forrest Eugene Norrod sold 19,487 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $431.40, for a total transaction of $8,406,691.80. Following the sale, the executive vice president owned 324,527 shares of the company’s stock, valued at $140,000,947.80. This trade represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 368,739 shares of company stock worth $159,602,431 over the last 90 days. Company insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors have recently bought and sold shares of AMD. Joseph Group Capital Management acquired a new stake in Advanced Micro Devices in the fourth quarter valued at about $25,000. Sarver Vrooman Wealth Advisors purchased a new position in Advanced Micro Devices in the fourth quarter worth $27,000. Cornerstone Financial Management LLC acquired a new stake in Advanced Micro Devices in the fourth quarter valued at $27,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices during the 4th quarter worth $30,000. Finally, Graney & King LLC acquired a new stake in shares of Advanced Micro Devices in the first quarter valued at about $31,000. 71.34% of the stock is owned by institutional investors and hedge funds.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.