Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 4.3% Following Insider Selling

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares were down 4.3% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $474.98 and last traded at $484.39. Approximately 23,542,264 shares were traded during mid-day trading, a decline of 34% from the average session volume of 35,461,281 shares. The stock had previously closed at $506.00.

Specifically, EVP Mark D. Papermaster sold 7,369 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $487.34, for a total value of $3,591,208.46. Following the transaction, the executive vice president directly owned 1,241,347 shares of the company’s stock, valued at approximately $604,958,046.98. The trade was a 0.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Paul Darren Grasby sold 15,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $514.91, for a total value of $7,723,650.00. Following the transaction, the executive vice president owned 117,687 shares of the company’s stock, valued at $60,598,213.17. The trade was a 11.30% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, SVP Ava Hahn sold 143 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $474.75, for a total transaction of $67,889.25. Following the sale, the senior vice president directly owned 17,644 shares in the company, valued at approximately $8,376,489. The trade was a 0.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

AMD has been the subject of a number of research analyst reports. Bank of America lifted their price target on Advanced Micro Devices from $550.00 to $620.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Zacks Research raised Advanced Micro Devices from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 3rd. Wedbush reissued an “outperform” rating and set a $600.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, August 5th. Barclays downgraded Advanced Micro Devices from an “overweight” rating to an “underweight” rating in a report on Friday, June 12th. Finally, Truist Financial upped their price target on Advanced Micro Devices from $478.00 to $594.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $546.87.

Advanced Micro Devices News Summary

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD introduced Instinct Coder, an enterprise-focused AI coding solution designed to support private, on-premises AI deployments. The launch reinforces AMD’s effort to expand its Instinct accelerator ecosystem beyond hyperscale data centers. Advanced Micro Devices Unveils Instinct Coder For Private Enterprise AI
• Positive Sentiment: AMD reportedly reached its AI rack energy-efficiency target, a potentially important advantage as data-center operators focus increasingly on power consumption and operating costs. However, the announcement has not offset broader selling pressure. AMD Stock Slides Despite Progress on an AI Energy Efficiency Goal
• Positive Sentiment: Reports highlight AMD’s acquisition of a small Canadian AI-inference startup and its collaboration with Cerebras on Helios rack platforms. If successful, the initiatives could improve inference performance and broaden AMD’s competitive positioning against Nvidia. AMD’s Acquisition Could Redefine Direct-Silicon AI Inference

Advanced Micro Devices Trading Down 4.2%

The company has a market capitalization of $791.49 billion, a P/E ratio of 124.64 and a beta of 2.48. The stock’s 50 day moving average is $512.08 and its 200-day moving average is $370.08. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a return on equity of 12.30% and a net margin of 15.58%.The business had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the firm posted $0.48 EPS. The business’s revenue was up 50.1% on a year-over-year basis. As a group, equities research analysts anticipate that Advanced Micro Devices, Inc. will post 6.44 earnings per share for the current year.

Institutional Investors Weigh In On Advanced Micro Devices

Hedge funds have recently made changes to their positions in the company. Southpoint Capital Advisors LP grew its stake in shares of Advanced Micro Devices by 50.0% in the first quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock worth $183,087,000 after acquiring an additional 300,000 shares during the period. Jefferies Financial Group Inc. lifted its position in Advanced Micro Devices by 6,228.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 308,021 shares of the semiconductor manufacturer’s stock valued at $65,966,000 after purchasing an additional 303,154 shares during the period. Boomfish Wealth Group LLC purchased a new stake in Advanced Micro Devices in the first quarter worth approximately $1,193,000. Dimensional Fund Advisors LP grew its position in Advanced Micro Devices by 6.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock worth $1,045,954,000 after purchasing an additional 291,165 shares during the period. Finally, Williamson Legacy Group LLC bought a new stake in Advanced Micro Devices in the 4th quarter worth approximately $1,118,000. 71.34% of the stock is currently owned by institutional investors.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.