Melius Lowers Advanced Micro Devices Stock Rating

Advanced Micro Devices (NASDAQ:AMD) recently experienced a change in stock rating by Melius, which downgraded the company from a "buy" rating to a "hold" rating. This decision was accompanied by a reduction in the price target for AMD's shares from $160.00 to $129.00. This update was communicated to investors in a report released on Tuesday morning.

Market Reactions to Rating Change

After Melius's announcement, analysts began reassessing their positions on Advanced Micro Devices. Other firms have also adjusted their price targets for AMD. For instance, Wells Fargo lowered its price objective from $205.00 to $165.00, maintaining an "overweight" rating on January 13th. On the same day, Loop Capital began coverage of AMD with a "buy" recommendation and set a price target of $175.00. Additionally, StockNews.com moved AMD from a "hold" to a "sell" rating, while Bank of America lowered its estimation from a "buy" to a "neutral" rating with a new price target of $155.00. Mizuho set their target at $160.00 with an "outperform" rating on January 10th.

Consensus Ratings and Analyst Commentary

As of now, the consensus rating for Advanced Micro Devices is categorized as "Moderate Buy", with a collective average price target of $173.07 across various analysts. Currently, the stock has two sell ratings, eight hold ratings, twenty-one buy ratings, and two strong buy ratings.

Current Trading Performance

On the trading front, shares of AMD opened at $114.17 on Tuesday and saw a decrease of 0.7%. The company has a market capitalization of approximately $185.28 billion, a price-to-earnings (P/E) ratio of 102.86, and a P/E/G ratio of 1.09. The stock has experienced fluctuations over the past year, recording a low of $112.80 and a high of $227.30. AMD's stock is trading below its 50-day moving average of $127.65 and its 200-day moving average of $142.74.

Recent Earnings Announcement

Advanced Micro Devices reported its most recent earnings results on October 29th. The company achieved earnings per share (EPS) of $0.92 for the quarter, matching the expectations of analysts. AMD's revenue for the quarter was reported as $6.82 billion, which exceeded the analyst consensus estimate of $6.71 billion. This represents a significant growth of 17.6% in revenue compared to the same quarter of the previous year. Analysts predict that AMD will post an EPS of 2.54 for the current year.

Insider Trading Activities

In related developments, AMD's executives have been active in stock sales. Notably, Executive Vice President Forrest Eugene Norrod sold 40,540 shares on November 5th, which led to a decrease of approximately 12.14% in his ownership. The stock was sold at an average price of $141.67. CEO Lisa T. Su also sold shares worth over $10 million in December, resulting in a 2.10% decline in her ownership. In total, insiders sold 197,036 shares over the past 90 days.

Institutional Investor Movements

Regarding institutional interest, several hedge funds have recently altered their positions in AMD. Creative Capital Management Investments LLC increased its holdings by 124.6% in the third quarter, now owning 155 shares valued at around $25,000 after acquiring an additional 86 shares. ZRC Wealth Management LLC also boosted its holdings by 90.4%, now holding 158 shares valued at $26,000. Overall, institutional investors own about 71.34% of AMD's stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc. is a global semiconductor company that operates in various segments including Data Center, Client, Gaming, and Embedded. The company specializes in x86 microprocessors, graphics processing units (GPUs), chipsets, and other technology applications in the semiconductor industry.

stock, rating, research