Wolfe Research Downgrades Advanced Micro Devices to Peer Perform Rating

Advanced Micro Devices (NASDAQ:AMD) has recently received a downgrade from Wolfe Research, which changed its rating on the company's shares from "outperform" to "peer perform". This change was disclosed in a research note released to the public on Thursday.

In addition to Wolfe Research's downgrade, AMD has faced various opinions from other research firms. For instance, Citigroup reduced its price target from $210 to $200 while maintaining a "buy" rating for the company in a report issued on October 30th. Similarly, Cantor Fitzgerald reaffirmed an "overweight" rating for AMD, setting a price target of $180 in their assessment on the same date.

HSBC took a more cautious approach by issuing a "reduce" rating and lowering its price target drastically from $200 to $110 in a report dated January 8th. Meanwhile, Loop Capital recently began covering AMD stocks, assigning a "buy" rating with a target price at $175. On January 10th, Goldman Sachs also modified its view on AMD, downgrading it from "buy" to "neutral" and revising its target price from $175 down to $129.

The overall consensus among analysts shows some divide. Two analysts recommend selling the stock, six are neutral with hold ratings, while twenty-two suggest buying, with two categorizing it as a "strong buy". According to MarketBeat.com, the consensus rating for AMD stands at "Moderate Buy" with an average price target set at $179.68.

AMD's Market Performance

As of Thursday, Advanced Micro Devices shares opened at $119.96. The company boasts a market capitalization of $194.67 billion, a price-to-earnings ratio of 108.07, and a price-to-earnings-growth ratio of 1.88. The stock has ranged between a low of $114.41 and a high of $227.30 over the past year. AMD's 50-day moving average is $131.60, while its 200-day moving average is $145.95. The company's debt-to-equity ratio stands at 0.03, with a quick ratio of 1.78 and a current ratio of 2.50.

Recently, AMD released its earnings report for the quarter ending on October 29th, documenting earnings per share (EPS) of $0.92, aligning with analyst expectations. The company enjoyed a return on equity of 6.62%, and its net margin was noted at 7.52%. Their quarterly revenue reached $6.82 billion, exceeding the projected $6.71 billion. This year's revenue increased by 17.6% compared to the same quarter last year. Analysts anticipate that AMD will report an EPS of 2.54 for the current fiscal year.

Insider Trading Activity

In the realm of insider transactions, EVP Forrest Eugene Norrod recently sold 40,540 shares on November 5th at an average price of $141.67, totaling approximately $5.74 million. This sale resulted in a 12.14% decrease in his holdings, which now amount to 293,347 shares valued at around $41.56 million. Similarly, CEO Lisa T. Su sold 80,000 shares on November 6th for $11.51 million. Following this transaction, she holds 3,566,762 shares worth about $513.15 million, reflecting a 2.19% decrease in her position. Over the last three months, insiders have offloaded 197,036 shares with a total value of $28.17 million. Current insider ownership is 0.73% of company's stock.

Institutional Investors and Share Movements

Recent activities among institutional investors highlight the changing dynamics of AMD shares. Creative Capital Management Investments LLC increased its AMD holdings by 124.6% in Q3, holding 155 shares now valued at $25,000. Likewise, ZRC Wealth Management LLC raised its stake by 90.4%, owning 158 shares valued at $26,000, while Global Wealth Strategies & Associates also entered into new ownership with shares worth about $26,000. Retirement Wealth Solutions LLC and Abich Financial Wealth Management LLC also made incremental purchases in recent periods. Collectively, institutional investors currently control approximately 71.34% of AMD's stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc. is a global leader in semiconductor technology, providing innovative products throughout various segments. These include Data Center, Client, Gaming, and Embedded solutions. AMD specializes in high-performance x86 microprocessors, graphics processing units (GPUs), and integrated products, driving establishment across diverse computing needs.

Conclusion

In summary, Advanced Micro Devices has experienced a range of analyst ratings as the market responds to recent developments and performance metrics. While the recent downgrade from Wolfe Research indicates caution, AMD holds several supportive factors that could benefit investors in the long term.

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