Advanced Micro Devices Receives Downgrade from HSBC Global Research

Advanced Micro Devices (NASDAQ:AMD) has recently experienced a significant change in its stock rating by analysts at HSBC Global Research. The downgrade was issued on a Wednesday, where the semiconductor company's rating was shifted from a "strong buy" to a "moderate sell". This move has been noted in a research report outlined by Zacks.com.

In addition to HSBC's analysis, AMD has been a subject of scrutiny and evaluation among various other research firms. For instance, on October 30th, Piper Sandler reiterated their stance on AMD by maintaining an "overweight" rating but adjusted their price target to $180.00, down from a previous $200.00. On the same day, Evercore ISI raised their target price from $193.00 to $198.00, also granting the company an "outperform" rating.

Further evaluations were provided by Benchmark, who confirmed a "buy" rating alongside a $200.00 price target on October 31st. In contrast, Bank of America downgraded AMD from a "buy" to a "neutral" rating on December 9th, reducing their price target from $180.00 to $155.00. Meanwhile, Rosenblatt Securities maintained their "buy" rating and issued an ambitious $250.00 price target on October 28th.

Currently, the stock ratings reflect a mixed bag; one analyst has given a sell rating, five analysts consider it a hold, twenty-three have provided a buy rating, and one has labeled it as a strong buy. As per MarketBeat data, Advanced Micro Devices holds a consensus rating of "Moderate Buy," with an average price target of approximately $187.85.

Market Performance of AMD

On the trading front, AMD shares opened at $121.84 on the referenced Wednesday, marking a decline of 4.3% at that point. The company boasts a market capitalization of $197.72 billion, along with a P/E ratio of 109.77, a P/E/G ratio of 1.88, and a beta of 1.66. Its current ratio stands at 2.50, with a quick ratio of 1.78 and a debt-to-equity ratio of 0.03. The stock has seen fluctuations in its moving averages, with a fifty-day simple moving average at $133.09 and a two-hundred day simple moving average at $147.05. Notably, the shares have experienced a 1-year low of $117.90 and a high of $227.30.

AMD's financial performance is noteworthy; the company reported its quarterly earnings on October 29th, revealing an earnings per share (EPS) of $0.92, which met analyst expectations. Revenue for the quarter reached $6.82 billion, surpassing estimates of $6.71 billion, and showed a year-over-year increase of 17.6%. Last year's EPS during the same quarter was $0.53, illustrating substantial growth over time. Analysts forecast an EPS of 2.54 for the current fiscal year.

Insider Trading Activities

In corporate news, CEO Lisa T. Su recently sold 80,000 shares of the company on November 6th, fetching an average price of $143.87 per share, totaling around $11.5 million. Post-sale, she continues to hold approximately 3.57 million shares valued at about $513 million. The sale represented a 2.19% reduction in her stake. Additionally, EVP Forrest Eugene Norrod sold 40,540 shares on November 5th, valued at over $5.7 million, resulting in a 12.14% decrease in his ownership. Over the last quarter, insiders sold around 197,036 shares, amounting to $28.17 million. Corporate insiders currently hold about 0.65% of the company’s shares.

Institutional Investor Movements

On the institutional front, there have been fluctuations in shareholding patterns. For example, Andra AP fonden acquired a new position in AMD worth about $2.86 million during Q2. HHM Wealth Advisors increased its stake by 38.5%, owning 597 shares worth approximately $97,000 after acquiring more. Similarly, Linscomb Wealth Inc. raised its ownership by 3.7%, totaling 13,595 shares valued at $2.21 million. Y.D. More Investments Ltd added to its position growing by 3.2%, and Cornercap Investment Counsel Inc. significantly increased its stake by 406.7%, acquiring 17,396 shares valued around $2.82 million. Presently, institutional investors own about 71.34% of Advanced Micro Devices’ stock.

Overview of Advanced Micro Devices

Advanced Micro Devices is a global semiconductor company that specializes in the design and production of various products. These include x86 microprocessors, graphics processing units (GPUs), embedded processors, and systems-on-chip (SoCs), among others. AMD operates through several segments like Data Center, Client, Gaming, and Embedded.

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