Advanced Micro Devices (NASDAQ:AMD) Trading Down 6.9% on Analyst Downgrade

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price fell 6.9% on Friday after Seaport Res Ptn downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $150.29 and last traded at $150.62. 33,731,594 shares were traded during mid-day trading, a decline of 27% from the average session volume of 46,401,789 shares. The stock had previously closed at $161.79.

A number of other analysts have also commented on AMD. Deutsche Bank Aktiengesellschaft set a $200.00 price target on Advanced Micro Devices in a research note on Wednesday, August 6th. Bank of America lifted their price target on Advanced Micro Devices from $175.00 to $200.00 and gave the company a “buy” rating in a research note on Tuesday, July 29th. Jefferies Financial Group lifted their price target on Advanced Micro Devices from $100.00 to $160.00 in a research note on Wednesday, July 16th. Benchmark lifted their price target on Advanced Micro Devices from $170.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, August 6th. Finally, Erste Group Bank raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Wednesday, July 23rd. Three analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $181.33.

Insiders Place Their Bets

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 17,998 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $155.03, for a total value of $2,790,229.94. Following the completion of the sale, the executive vice president directly owned 1,713,710 shares in the company, valued at approximately $265,676,461.30. The trade was a 1.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Paul Darren Grasby sold 10,000 shares of Advanced Micro Devices stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $173.21, for a total value of $1,732,100.00. Following the completion of the sale, the executive vice president owned 125,505 shares of the company’s stock, valued at approximately $21,738,721.05. The trade was a 7.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 252,998 shares of company stock worth $41,415,580. 0.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds have recently added to or reduced their stakes in the business. Pinney & Scofield Inc. increased its holdings in Advanced Micro Devices by 81.0% in the second quarter. Pinney & Scofield Inc. now owns 190 shares of the semiconductor manufacturer’s stock worth $27,000 after purchasing an additional 85 shares in the last quarter. Dogwood Wealth Management LLC grew its stake in Advanced Micro Devices by 2,311.1% in the second quarter. Dogwood Wealth Management LLC now owns 217 shares of the semiconductor manufacturer’s stock valued at $30,000 after acquiring an additional 208 shares during the period. Avion Wealth grew its stake in Advanced Micro Devices by 49.3% in the second quarter. Avion Wealth now owns 218 shares of the semiconductor manufacturer’s stock valued at $30,000 after acquiring an additional 72 shares during the period. West Branch Capital LLC grew its stake in Advanced Micro Devices by 3,057.1% in the second quarter. West Branch Capital LLC now owns 221 shares of the semiconductor manufacturer’s stock valued at $31,000 after acquiring an additional 214 shares during the period. Finally, Greenline Partners LLC acquired a new stake in Advanced Micro Devices in the fourth quarter valued at approximately $28,000. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Stock Down 6.6%

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 stock has a 50 day simple moving average of $161.36 and a 200 day simple moving average of $125.54. The stock has a market cap of $245.28 billion, a price-to-earnings ratio of 86.86, a PEG ratio of 1.90 and a beta of 1.92.

Advanced Micro Devices (NASDAQ:AMD) last announced its quarterly earnings data on Tuesday, August 5th. The semiconductor manufacturer reported $0.48 EPS 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 firm had revenue of $7.69 billion during the quarter, compared to analyst estimates of $7.41 billion. During the same period last year, the business posted $0.69 EPS. The company’s revenue was up 31.7% on a year-over-year basis. Advanced Micro Devices has set its Q3 2025 guidance at EPS. As a group, analysts expect 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 approved a share buyback plan on Wednesday, May 14th that permits the company to repurchase $6.00 billion in shares. This repurchase authorization permits the semiconductor manufacturer to buy up to 3.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Advanced Micro Devices Company Profile

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.