Advanced Micro Devices (NASDAQ: AMD) received an upgrade from CICC Research, which raised its rating from “market perform” to “outperform” in a report published on October 6, 2023. The firm has set a target price of $265.00 for AMD’s stock, reflecting an optimistic outlook on the semiconductor manufacturer’s future performance.
The upgrade comes as multiple research firms have recently issued varying ratings on AMD. On October 8, Weiss Ratings downgraded the stock from a “hold (C-)” to a “sell (D+)” rating, indicating a more cautious stance. Conversely, Evercore ISI boosted its target price from $240.00 to $270.00 and assigned an “outperform” rating on the same day. Additionally, Raymond James Financial raised its price target from $120.00 to $200.00, also issuing an “outperform” rating.
In another notable move, Wedbush increased its price objective from $270.00 to $290.00, reinforcing a positive sentiment towards AMD. However, Erste Group Bank took a different approach and lowered its rating from “buy” to “hold” on September 11, 2023. Collectively, the ratings landscape shows that three analysts have assigned a “Strong Buy,” while twenty-eight rated it as “Buy,” ten as “Hold,” and one as “Sell.” As of now, data from MarketBeat.com indicates that AMD holds an average rating of “Moderate Buy” with an average target price of $263.26.
Recent Earnings and Financial Performance
AMD recently disclosed its quarterly earnings on November 4, 2023, reporting earnings per share (EPS) of $1.20, surpassing analysts’ expectations of $1.17 by $0.03. The company achieved a return on equity of 7.54% and a net margin of 9.57%. Revenue reached $9.25 billion for the quarter, exceeding predictions of $8.76 billion. This figure reflects a substantial increase of 35.6% compared to the same quarter the previous year, when the firm posted an EPS of $0.92. Analysts anticipate that AMD will post an EPS of 3.87 for the current fiscal year.
Insider Activity and Institutional Investment
In related developments, insider trading activity has seen significant movements. On October 6, 2023, Senior Vice President Ava Hahn sold 2,868 shares at an average price of $226.01, resulting in a total transaction value of approximately $648,196.68. Following this sale, Hahn holds 9,033 shares valued at around $2,041,548.33, marking a 24.10% decrease in her ownership.
In another transaction, Executive Vice President Paul Darren Grasby sold 10,000 shares on August 12, 2023, at an average price of $173.21, totaling $1,732,100.00. Grasby now owns 125,505 shares valued at approximately $21,738,721.05, representing a 7.38% decline in his ownership. Over the past 90 days, insiders have sold a total of 274,118 shares valued at $46,180,719, with insiders currently holding 0.06% of the company’s stock.
Institutional investors are also adjusting their positions. Notably, Norges Bank acquired a new stake worth approximately $3.09 billion during the second quarter. Kingstone Capital Partners Texas LLC added a stake valued at $958.42 million. Goldman Sachs Group Inc. increased its holdings by 169.7% in the first quarter, owning 9,855,341 shares valued at about $1.01 billion. T. Rowe Price Investment Management Inc. enhanced its stake by 131.5%, holding 10,413,139 shares worth approximately $1.07 billion.
Currently, institutional investors and hedge funds collectively own 71.34% of AMD’s stock, reflecting a robust interest in the semiconductor sector.
As Advanced Micro Devices continues to navigate the competitive landscape, the recent upgrades and financial performance highlight its potential for growth in the coming quarters. The company’s diverse product offerings across various segments, including data centers and gaming, position it well to capitalize on increasing demand for semiconductor technology globally.
