Advanced Micro Devices (NASDAQ:AMD) Shares Down 1.1% - Time to Sell?

On Thursday, shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) dipped by 1.1% during mid-day trading, reaching a low of $132.96 before closing at $136.24. A total of 30,097,938 shares were exchanged, marking a significant decrease of 45% from the average trading volume of 54,698,379 shares. The stock had ended the previous day at $137.72.

Recent Analyst Updates

Various brokerages have recently updated their views on AMD. Wedbush maintained an "outperform" rating, setting a price target of $200.00. UBS Group lowered their target from $210.00 to $205.00, while retaining a "buy" rating for the company. Similarly, Rosenblatt Securities confirmed a "buy" rating with a new target of $250.00. However, StockNews.com downgraded AMD from a "hold" rating to a "sell." Meanwhile, TD Cowen adjusted their target from $210.00 to $185.00, keeping a "buy" rating. Collectively, one analyst has given a sell rating, three have suggested holding, twenty-eight recommend buying, and one has issued a strong buy recommendation. According to MarketBeat, AMD's consensus rating stands at "Moderate Buy" with an average price target of $192.79.

Stock Performance Overview

AMD displays sound liquidity with a current ratio of 2.50, a quick ratio of 1.78, and a low debt-to-equity ratio of 0.03. The company boasts a market cap of $221.09 billion, a P/E ratio of 122.74, and a P/E/G ratio of 1.95. Over the past days, the stock's 50-day moving average price has been $152.94, while its 200-day moving average is $154.28.

In their latest quarterly earnings report, released on October 29th, Advanced Micro Devices reported an earnings per share (EPS) of $0.92, aligning with analysts' expectations. The company's return on equity stood at 6.62%, while its net margin was 7.52%, with a revenue of $6.82 billion, outperforming the forecasted $6.71 billion. A year earlier, the firm had reported an EPS of $0.53, indicating a year-over-year revenue growth of 17.6%. Analysts project AMD will achieve an EPS of 2.54 for the current year.

Insider Activities

In related developments, EVP Forrest Eugene Norrod sold 40,540 shares of the company's stock on November 5th, at an average price of $141.67, totaling about $5.74 million. This transaction reflected a 12.14% reduction in his stake, leaving him with approximately 293,347 shares valued at about $41.56 million. Additionally, CEO Lisa T. Su sold 80,000 shares on November 6th for an average price of $143.87, amounting to around $11.51 million, which represented a 2.19% decrease in her holdings, now totaling roughly 3.57 million shares worth about $513.15 million. Currently, insiders hold approximately 0.65% of the company's stock.

Institutional Trading Trends

Recent activities from institutional investors show that State Street Corp has raised its position in AMD by 2.3%, now holding about 70,170,271 shares valued at $11.51 billion after purchasing an additional 1,580,035 shares. Similarly, Geode Capital Management LLC increased its stake by 1.3% to own 34,243,843 shares worth $5.60 billion, while Fisher Asset Management LLC saw a 2.8% increase with 23,795,236 shares valued at $3.90 billion. UBS Asset Management has also expanded its holdings by 8.7% to own 19,472,211 shares, and Legal & General Group Plc raised its stake by 1.4% to possess 13,310,158 shares valued at approximately $2.16 billion. Overall, institutional investors control about 71.34% of AMC's stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc. is a leading semiconductor firm operating globally. The company specializes in various segments, including Data Center, Client, Gaming, and Embedded. AMD produces x86 microprocessors and graphics processing units (GPUs), including integrated solutions, chipsets, and custom products designed for specific applications.

Conclusion

Given the recent decline in AMD shares and mixed signals from analysts, investors might be contemplating whether to hold or sell their shares. With a strong institutional backing and positive growth projections, some investors may view the dip as an opportunity, while others might take the chance to exit. Each investor's situation is unique, and careful consideration should be made based on personal investment goals.

AMD, Stocks, Trading