Advanced Micro Devices, Inc. (AMD) Rating Increased to Buy at Zacks Investment Research
Advanced Micro Devices, Inc. (NASDAQ:AMD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $14.00 target price on the semiconductor manufacturer’s stock. Zacks Investment Research‘s price target indicates a potential upside of 15.23% from the stock’s previous close.
According to Zacks, “AMD is benefiting from strong graphics processor unit (GPU) sales. The company's improving position in key markets driven by the introduction of several APUs and GPUs is positive for the stock. We believe that increasing adoption of the company's products like Radeon and FirePro server GPUs will drive the top-line growth going forward. Moreover, the recently released Ryzen is expected to drive market share going ahead. Estimates have been stable lately ahead of the company's Q2 earnings release. The company has a mixed records of earnings surprises in the recent quarters. However, increased costs related to product introductions are likely to impact the company’s near-term profitability. We note that loss widened on a sequential basis in the quarter. Additionally, increasing competition from the likes of NVDIA remains a concern. We note that AMD has underperformed the broader market on a year-to-date basis.”
Several other equities research analysts have also issued reports on AMD. Canaccord Genuity lifted their price objective on shares of Advanced Micro Devices to $17.00 and gave the company a “buy” rating in a research note on Thursday, March 9th. Jefferies Group LLC lifted their price objective on shares of Advanced Micro Devices to $16.00 and gave the company a “buy” rating in a research note on Monday, March 20th. Susquehanna Bancshares Inc lifted their price objective on shares of Advanced Micro Devices from $9.00 to $12.00 and gave the company a “neutral” rating in a research note on Monday, March 20th. Macquarie started coverage on shares of Advanced Micro Devices in a research note on Thursday, March 30th. They issued a “neutral” rating and a $14.00 price objective for the company. Finally, Goldman Sachs Group, Inc. (The) started coverage on shares of Advanced Micro Devices in a research note on Thursday, April 6th. They issued a “sell” rating and a $11.00 price objective for the company. Three research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $13.03.
Shares of Advanced Micro Devices (NASDAQ:AMD) traded down 2.64% on Tuesday, hitting $12.15. The company had a trading volume of 39,929,101 shares. Advanced Micro Devices has a 12-month low of $4.82 and a 12-month high of $15.55. The company’s market cap is $11.48 billion. The company has a 50 day moving average of $11.98 and a 200-day moving average of $12.33.
Advanced Micro Devices (NASDAQ:AMD) last released its quarterly earnings data on Monday, May 1st. The semiconductor manufacturer reported ($0.04) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.04). Advanced Micro Devices had a negative net margin of 10.42% and a negative return on equity of 76.29%. The business had revenue of $984 million during the quarter, compared to analyst estimates of $984.40 million. During the same quarter in the previous year, the business earned ($0.12) EPS. Advanced Micro Devices’s quarterly revenue was up 18.3% compared to the same quarter last year. On average, analysts forecast that Advanced Micro Devices will post $0.07 earnings per share for the current year.
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In related news, CEO Lisa T. Su sold 87,500 shares of the stock in a transaction that occurred on Tuesday, May 9th. The shares were sold at an average price of $10.24, for a total value of $896,000.00. Following the transaction, the chief executive officer now directly owns 1,429,540 shares in the company, valued at $14,638,489.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Devinder Kumar sold 94,199 shares of the stock in a transaction that occurred on Wednesday, May 3rd. The shares were sold at an average price of $10.20, for a total transaction of $960,829.80. Following the completion of the transaction, the chief financial officer now owns 746,635 shares in the company, valued at $7,615,677. The disclosure for this sale can be found here. Insiders sold 638,478 shares of company stock worth $7,418,077 over the last 90 days. 1.60% of the stock is currently owned by company insiders.
A number of large investors have recently modified their holdings of AMD. Nomura Asset Management Co. Ltd. increased its stake in shares of Advanced Micro Devices by 284.3% in the first quarter. Nomura Asset Management Co. Ltd. now owns 100,312 shares of the semiconductor manufacturer’s stock valued at $1,460,000 after buying an additional 74,212 shares during the last quarter. Skandinaviska Enskilda Banken AB publ purchased a new stake in shares of Advanced Micro Devices during the first quarter valued at approximately $1,272,000. Public Employees Retirement System of Ohio increased its stake in shares of Advanced Micro Devices by 441.7% in the first quarter. Public Employees Retirement System of Ohio now owns 192,613 shares of the semiconductor manufacturer’s stock valued at $2,803,000 after buying an additional 157,057 shares during the last quarter. Achmea Investment Management B.V. purchased a new stake in shares of Advanced Micro Devices during the first quarter valued at approximately $343,000. Finally, North Star Asset Management Inc. increased its stake in shares of Advanced Micro Devices by 1.5% in the first quarter. North Star Asset Management Inc. now owns 15,330 shares of the semiconductor manufacturer’s stock valued at $223,000 after buying an additional 233 shares during the last quarter. 56.81% of the stock is owned by hedge funds and other institutional investors.
Advanced Micro Devices Company Profile
Advanced Micro Devices, Inc is a global semiconductor company. The Company is engaged in offering x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs) and professional graphics, and server and embedded processors and semi-custom System-on-Chip (SoC) products and technology for game consoles.
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