AMD Downgraded to Moderate Sell by HSBC Global Research

Advanced Micro Devices (NASDAQ:AMD) has recently seen a notable change in its stock rating by analysts at HSBC Global Research. In a research note released on Wednesday, they downgraded AMD from a 'strong-buy' rating to a 'moderate sell' rating. This shift highlights growing concerns among analysts regarding the company's current performance and future potential.

In addition to this downgrade, AMD has attracted attention from other financial analysts in recent weeks. For example, Piper Sandler maintained an 'overweight' rating on AMD but revised its price target to $180.00, down from $200.00, signaling some caution about future price movements. Similarly, Evercore ISI raised their target price slightly from $193.00 to $198.00 while maintaining an 'outperform' rating, suggesting an optimistic outlook despite the recent downgrade. On the other hand, Benchmark reiterated a 'buy' rating on the stock and set a price target at $200.00.

However, not all analysts are optimistic. Bank of America revised its rating from 'buy' to 'neutral' and lowered its price target from $180 to $155. This contrasting view reflects the mixed sentiments in the market regarding AMD's performance. Additionally, Rosenblatt Securities maintained a 'buy' rating with a target price significantly higher at $250.00, indicating strong confidence in AMD’s long-term prospects.

Overall, the current consensus from various research analysts is somewhat divided: one has issued a sell rating, five have a hold rating, while an impressive twenty-three have assigned a buy rating to AMD. According to data, Advanced Micro Devices currently holds a consensus rating of 'Moderate Buy' and an average price target of $187.85, illustrating a generally positive outlook among the majority of analysts.

Current Stock Performance

As for AMD's stock performance, on Wednesday, it opened at $121.84. Its market capitalization stands at approximately $197.72 billion. The stock features a P/E ratio of 109.77 and a P/E/G ratio of 1.88, with a beta of 1.66 indicating a higher volatility than the market average. Key ratios for the company include a current ratio of 2.50 and a quick ratio of 1.78, suggesting strong liquidity. Its debt-to-equity ratio is low at 0.03, indicating minimal required leverage.

Recent Earnings Report

Advanced Micro Devices posted its latest quarterly earnings on Tuesday, October 29th, reporting an earnings per share (EPS) of $0.92, which met analyst expectations. The company achieved a revenue of $6.82 billion for the quarter, exceeding projections of $6.71 billion. Year-over-year, AMD saw a significant revenue increase of 17.6%. The net profit margin for the quarter was 7.52% with a return on equity of 6.62%. For the current fiscal year, analysts predict AMD to report an EPS of 2.54.

Insider Trading Activity

Additionally, there have been moves in the insider trading space. On November 6th, CEO Lisa T. Su sold a total of 80,000 shares at an average price of $143.87, resulting in a transaction valued at approximately $11.5 million. This sale reflects a 2.19% decrease in her shares. Furthermore, EVP Forrest Eugene Norrod sold 40,540 shares at an average price of $141.67, further indicating insider confidence may be wavering as it represents a 12.14% decrease in his holdings. Over the past three months, insiders have sold a considerable number of shares collectively valued at $28.2 million, with corporate insiders owning roughly 0.65% of the company’s stock.

Institutional Investor Actions

The activity among institutional investors has also been noteworthy. Andra AP fonden added a new stake in AMD valued at approximately $2.86 million during the second quarter. HHM Wealth Advisors LLC boosted its position by 38.5%, owning 597 shares worth about $97,000 after acquiring additional shares. Other firms like Linscomb Wealth Inc. and Y.D. More Investments Ltd., among others, have also increased their stakes, signaling sustained institutional interest. Currently, about 71.34% of AMD's stock is held by hedge funds and institutional investors.

Company Overview

Advanced Micro Devices, Inc. operates globally in the semiconductor industry, specializing in x86 microprocessors and graphics processing units (GPUs). The company is structured into several segments, including Data Center, Client, Gaming, and Embedded, allowing them to cater to diverse market needs.

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