Advanced Micro Devices (NASDAQ:AMD) Trading 9.9% Higher – Still a Buy?

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) rose 9.9% during mid-day trading on Monday . The stock traded as high as $559.11 and last traded at $569.1030. Approximately 5,164,377 shares traded hands during trading, a decline of 86% from the average daily volume of 37,297,457 shares. The stock had previously closed at $517.82.

Advanced Micro Devices News Summary

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

• Positive Sentiment: Goldman Sachs lifted its 12-month outlook for AMD, reinforcing the view that the stock may have more upside despite its recent rally. Article: Why Advanced Micro Devices Stock Just Bounced Back
• Positive Sentiment: Another analyst update from Goldman Sachs helped AMD join a broader Monday morning move higher in semiconductor names, adding momentum to the stock. Article: Monday’s Morning Movers: AMD & ASML PT Hikes, DDOG Downgrade
• Positive Sentiment: New reporting highlighted AMD’s expanding AI opportunity, including a Turing self-driving deal that uses AMD AI accelerators and investment support from AMD Ventures, which supports the company’s long-term growth narrative. Article: AMD (AMD) Expands Into Self Driving With Turing Deal And Venture Backing
• Positive Sentiment: Commentary around rising earnings and revenue estimates, plus continued enthusiasm for AMD’s AI and server-CPU demand, is keeping sentiment constructive. Article: How Advanced Micro Devices, Inc.’s (AMD) Server CPU Demand Is Broadening Its AI Growth Story

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Roth Mkm reissued a “buy” rating and issued a $500.00 price objective on shares of Advanced Micro Devices in a research note on Wednesday, May 6th. Citigroup lowered Advanced Micro Devices from a “buy” rating to a “market perform” rating in a research report on Friday, June 12th. Erste Group Bank raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Thursday, April 2nd. Mizuho lifted their target price on Advanced Micro Devices from $515.00 to $615.00 and gave the stock an “outperform” rating in a report on Monday, June 1st. Finally, Weiss Ratings upgraded Advanced Micro Devices from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, twelve have assigned a Hold rating and one has assigned 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 $453.92.

Advanced Micro Devices Stock Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.96 and a current ratio of 2.72. The stock’s 50 day moving average price is $470.75 and its 200 day moving average price is $308.01. The company has a market capitalization of $926.38 billion, a P/E ratio of 185.81, a price-to-earnings-growth ratio of 1.53 and a beta of 2.47.

Advanced Micro Devices (NASDAQ:AMD) last announced its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.37 earnings per share for the quarter, topping analysts’ consensus estimates 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 net margin of 13.37% and a return on equity of 9.55%. Advanced Micro Devices’s quarterly revenue was up 37.8% on a year-over-year basis. During the same quarter last year, the firm earned $0.96 earnings per share. As a group, equities analysts expect that Advanced Micro Devices, Inc. will post 6.15 EPS for the current year.

Insider Activity

In related news, Director Nora Denzel sold 8,626 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $522.00, for a total transaction of $4,502,772.00. Following the sale, the director owned 87,173 shares in the company, valued at $45,504,306. This represents a 9.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Lisa T. Su sold 125,000 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $460.69, for a total value of $57,586,250.00. Following the sale, the chief executive officer owned 2,896,899 shares in the company, valued at approximately $1,334,572,400.31. The trade was a 4.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 374,739 shares of company stock worth $161,135,671. 0.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Advanced Micro Devices

Several institutional investors have recently added to or reduced their stakes in the business. Joseph Group Capital Management acquired a new stake in shares of Advanced Micro Devices during the 4th quarter worth approximately $25,000. Sarver Vrooman Wealth Advisors acquired a new position in shares of Advanced Micro Devices during the 4th quarter valued at $27,000. Cornerstone Financial Management LLC acquired a new position in shares of Advanced Micro Devices during the 4th quarter valued at $27,000. Basepoint Wealth LLC acquired a new position in shares of Advanced Micro Devices during the 4th quarter valued at $30,000. Finally, Graney & King LLC bought a new position in Advanced Micro Devices during the first quarter worth $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.