Zacks Investment Research Downgrades Advanced Micro Devices, Inc. (AMD) to Hold
Advanced Micro Devices, Inc. (NASDAQ:AMD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
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 going down 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. Additionally, increasing competition from the likes of NVDIA remains a concern. We note that AMD has underperformed the Zacks Electronics Semiconductor market on a year-to-date basis.”
A number of other research firms have also issued reports on AMD. Oppenheimer Holdings, Inc. reiterated a “market perform” rating on shares of Advanced Micro Devices in a report on Thursday, April 6th. Longbow Research began coverage on shares of Advanced Micro Devices in a report on Friday, June 9th. They issued a “neutral” rating and a $13.10 price objective on the stock. Vetr upgraded shares of Advanced Micro Devices from a “buy” rating to a “strong-buy” rating and set a $15.99 price objective on the stock in a report on Monday, June 26th. Northland Securities restated a “buy” rating and issued a $17.50 price objective on shares of Advanced Micro Devices in a report on Friday, June 23rd. Finally, Credit Suisse Group restated a “neutral” rating on shares of Advanced Micro Devices in a report on Sunday, May 21st. Five investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $12.88.
Shares of Advanced Micro Devices (NASDAQ AMD) traded up 2.02% during mid-day trading on Monday, reaching $14.16. 70,709,827 shares of the company’s stock traded hands. Advanced Micro Devices has a 12-month low of $5.45 and a 12-month high of $15.55. The company’s 50-day moving average price is $12.86 and its 200-day moving average price is $12.56. The stock’s market capitalization is $13.38 billion.
Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings data on Monday, May 1st. The semiconductor manufacturer reported ($0.04) EPS for the quarter, hitting 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 firm had revenue of $984 million for the quarter, compared to analyst estimates of $984.40 million. During the same period in the prior year, the business posted ($0.12) EPS. The business’s revenue for the quarter was up 18.3% compared to the same quarter last year. Analysts anticipate that Advanced Micro Devices will post $0.07 earnings per share for the current year.
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In related news, insider Darla M. Smith sold 17,028 shares of Advanced Micro Devices stock in a transaction dated Wednesday, May 3rd. The stock was sold at an average price of $10.25, for a total value of $174,537.00. Following the completion of the sale, the insider now directly owns 29,147 shares in the company, valued at $298,756.75. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP James Robert Anderson sold 160,122 shares of Advanced Micro Devices stock in a transaction dated Monday, June 19th. The stock was sold at an average price of $12.48, for a total value of $1,998,322.56. Following the completion of the sale, the senior vice president now owns 622,485 shares of the company’s stock, valued at $7,768,612.80. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 618,478 shares of company stock valued at $7,151,477. 1.60% of the stock is currently owned by corporate insiders.
Several institutional investors have recently bought and sold shares of AMD. Vanguard Group Inc. raised its position in Advanced Micro Devices by 21.9% in the first quarter. Vanguard Group Inc. now owns 87,294,800 shares of the semiconductor manufacturer’s stock valued at $1,270,140,000 after buying an additional 15,661,774 shares during the last quarter. Wellington Management Group LLP boosted its position in Advanced Micro Devices by 5,764.6% in the first quarter. Wellington Management Group LLP now owns 14,181,305 shares of the semiconductor manufacturer’s stock valued at $206,339,000 after buying an additional 13,939,494 shares during the period. Old Mutual Global Investors UK Ltd. acquired a new position in Advanced Micro Devices during the first quarter valued at $129,039,000. MARSHALL WACE ASIA Ltd acquired a new position in Advanced Micro Devices during the first quarter valued at $63,654,000. Finally, Marshall Wace North America L.P. acquired a new position in Advanced Micro Devices during the first quarter valued at $63,654,000. Institutional investors own 56.93% of the company’s stock.
About Advanced Micro Devices
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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