Advanced Micro Devices (NASDAQ:AMD) Shares Gap Down Following Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD) gapped down prior to trading on Friday after Seaport Res Ptn downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $161.79, but opened at $157.12. Advanced Micro Devices shares last traded at $151.71, with a volume of 18,810,058 shares changing hands.

Other equities research analysts have also recently issued reports about the company. UBS Group raised their target price on Advanced Micro Devices from $150.00 to $210.00 and gave the company a “buy” rating in a research report on Monday, July 28th. The Goldman Sachs Group raised shares of Advanced Micro Devices to a “hold” rating and set a $140.00 price target on the stock in a research note on Thursday, July 10th. Susquehanna raised their price target on shares of Advanced Micro Devices from $135.00 to $210.00 and gave the company a “positive” rating in a research note on Wednesday, July 30th. DZ Bank raised shares of Advanced Micro Devices from a “sell” rating to a “hold” rating and set a $165.00 price target on the stock in a research note on Thursday, August 7th. Finally, HSBC raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating and set a $200.00 price target on the stock in a research note on Thursday, July 10th. Three research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $181.33.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 10,000 shares of the business’s stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $173.21, for a total value of $1,732,100.00. Following the completion of the transaction, the executive vice president owned 125,505 shares in the company, valued at $21,738,721.05. The trade was a 7.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Mark D. Papermaster sold 17,998 shares of the business’s stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $155.03, for a total transaction of $2,790,229.94. Following the completion of the transaction, the executive vice president owned 1,713,710 shares of the company’s stock, valued at approximately $265,676,461.30. This trade represents a 1.04% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 252,998 shares of company stock worth $41,415,580 over the last 90 days. Corporate insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Institutional investors have recently modified their holdings of the company. Toronto Dominion Bank lifted its position in shares of Advanced Micro Devices by 443.3% during the 4th quarter. Toronto Dominion Bank now owns 5,467,956 shares of the semiconductor manufacturer’s stock worth $660,475,000 after purchasing an additional 4,461,609 shares during the last quarter. Bank Pictet & Cie Europe AG lifted its position in Advanced Micro Devices by 12.7% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 264,574 shares of the semiconductor manufacturer’s stock valued at $31,958,000 after acquiring an additional 29,825 shares during the last quarter. Valicenti Advisory Services Inc. lifted its position in Advanced Micro Devices by 4.0% in the first quarter. Valicenti Advisory Services Inc. now owns 76,826 shares of the semiconductor manufacturer’s stock valued at $7,893,000 after acquiring an additional 2,944 shares during the last quarter. Sound Income Strategies LLC lifted its position in Advanced Micro Devices by 17.2% in the first quarter. Sound Income Strategies LLC now owns 1,728 shares of the semiconductor manufacturer’s stock valued at $178,000 after acquiring an additional 253 shares during the last quarter. Finally, Brighton Jones LLC lifted its position in Advanced Micro Devices by 178.2% in the fourth quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock valued at $5,551,000 after acquiring an additional 29,438 shares during the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Advanced Micro Devices Trading Down 6.6%

The stock has a market capitalization of $245.28 billion, a PE ratio of 86.86, a PEG ratio of 1.90 and a beta of 1.92. The company has a quick ratio of 1.81, a current ratio of 2.49 and a debt-to-equity ratio of 0.05. The business’s 50-day moving average is $161.36 and its two-hundred day moving average is $125.54.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings results on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 earnings per share for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.06). Advanced Micro Devices had a net margin of 9.57% and a return on equity of 7.54%. The company had revenue of $7.69 billion during the quarter, compared to analysts’ expectations of $7.41 billion. During the same period last year, the firm earned $0.69 earnings per share. Advanced Micro Devices’s revenue was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. On average, analysts anticipate that Advanced Micro Devices, Inc. will post 3.87 earnings per share for the current fiscal year.

Advanced Micro Devices announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to purchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.