Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.1% - Time to Sell?

Advanced Micro Devices, Inc. (NASDAQ:AMD) saw its shares dip by 1.1% in mid-day trading on Thursday. The stock price fell to a low of $132.96 before settling at $136.24. In total, 30,097,938 shares were traded during this session, reflecting a 45% drop compared to the average trading volume of 54,698,379 shares. The previous close for the stock was reported at $137.72.

Analysts Set New Price Targets

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Recently, various brokerages have commented on AMD. Wedbush maintained an "outperform" rating while targeting a price of $200.00 per share in a note published on July 31st. UBS Group adjusted their target down from $210.00 to $205.00, still holding a "buy" rating as of October 30th. On the same day, TD Cowen revised their price target from $210.00 to $185.00, while still recommending a "buy." Rosenblatt Securities reaffirmed a "buy" rating with a higher target of $250.00 on October 28th. Overall, the stock received one "sell" rating, three "hold" ratings, and an overwhelming twenty-eight "buy" ratings from analysts. The consensus rating for AMD is currently described as a "Moderate Buy," with an average price target of around $192.79 according to MarketBeat.

Advanced Micro Devices Stock Performance

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Advanced Micro Devices exhibits a robust financial profile with a current ratio of 2.50, a quick ratio of 1.78, and a low debt-to-equity ratio of 0.03. The company is valued at approximately $221.09 billion, with a price-to-earnings (P/E) ratio of 122.74 and a P/E/G ratio of 1.95. Over the past 50 days, the stock's moving average price stood at $152.94, while the 200-day moving average price was at $154.28.

In their most recent quarterly earnings report released on October 29th, AMD reported earnings of $0.92 per share, aligning with analysts' estimates. The company achieved a return on equity of 6.62% and a net margin of 7.52%. Their revenue for this quarter amounted to $6.82 billion, surpassing the expected $6.71 billion. This marks a significant increase from the same quarter last year when they posted $0.53 earnings per share. Analysts forecast AMD to achieve an EPS of 2.54 for the current fiscal year.

Insider Buying and Selling

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In related news, Executive Vice President Forrest Eugene Norrod divested 40,540 shares at an average price of $141.67 on November 5th, totaling about $5,743,301.80. Following this transaction, Norrod now retains a stake of 293,347 shares valued at approximately $41,558,469.49, marking a 12.14% reduction in their holdings. This transaction was recorded in a regulatory filing with the SEC. Furthermore, CEO Lisa T. Su sold 80,000 shares on November 6th for an average price of $143.87, totaling around $11,509,600.00. After this sale, Su owns 3,566,762 shares valued at about $513,150,048.94, representing a 2.19% decline in their holdings. Insiders currently hold about 0.65% of the company’s shares.

Institutional Trading of Advanced Micro Devices

Recent activity from large investors shows a trend toward increased holdings in AMD. State Street Corp raised its position by 2.3% in the third quarter, now owning 70,170,271 shares worth approximately $11.51 billion after acquiring an additional 1,580,035 shares. Geode Capital Management LLC also increased their stake by 1.3%, reaching a total of 34,243,843 shares valued at $5.60 billion. Other firms like Fisher Asset Management LLC, UBS Asset Management, and Legal & General Group Plc added to their holdings, reflecting a positive sentiment among institutional investors who collectively possess 71.34% of AMD stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a global semiconductor company, providing a range of products including x86 microprocessors, graphics processing units (GPUs), and semi-custom SoC products. The company's offerings are divided into segments such as Data Center, Client, Gaming, and Embedded.

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This article provides insights into the trading activity and financial health of Advanced Micro Devices Inc. As investors contemplate whether now is the right time to buy or sell, it's crucial to consider all angles, including recent analyst ratings and insider activity.

Should you invest $1,000 in Advanced Micro Devices right now?

Before making any investment decisions regarding AMD, it's essential to evaluate the opinions of top analysts and review stocks they recommend. Although AMD holds a "Moderate Buy" rating, other analysts might suggest looking into alternatives that currently offer more attractive opportunities.

AMD, stocks, analysis