Advanced Micro Devices (NASDAQ:AMD) Stock Price Down 9.3% Following Weak Earnings

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 9.3% on Wednesday following a weaker than expected earnings announcement. The company traded as low as $106.50 and last traded at $108.35. Approximately 49,904,440 shares changed hands during trading, an increase of 24% from the average daily volume of 40,374,180 shares. The stock had previously closed at $119.50.

The semiconductor manufacturer reported $0.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.07 by ($0.19). Advanced Micro Devices had a return on equity of 6.62% and a net margin of 7.52%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Wells Fargo & Company reduced their price objective on shares of Advanced Micro Devices from $165.00 to $140.00 and set an “overweight” rating for the company in a research report on Wednesday. Evercore ISI upped their price target on shares of Advanced Micro Devices from $193.00 to $198.00 and gave the company an “outperform” rating in a research note on Wednesday, October 30th. Morgan Stanley lowered their target price on Advanced Micro Devices from $158.00 to $147.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Rosenblatt Securities reiterated a “buy” rating and set a $250.00 price objective on shares of Advanced Micro Devices in a research report on Tuesday. Finally, StockNews.com downgraded shares of Advanced Micro Devices from a “hold” rating to a “sell” rating in a research note on Tuesday, January 14th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, nineteen have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $166.08.

Insiders Place Their Bets

In other Advanced Micro Devices news, CEO Lisa T. Su sold 76,496 shares of the firm’s stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $142.66, for a total value of $10,912,919.36. Following the completion of the sale, the chief executive officer now directly owns 3,566,762 shares of the company’s stock, valued at $508,834,266.92. This trade represents a 2.10 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.65% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Linscomb Wealth Inc. raised its holdings in Advanced Micro Devices by 11.2% during the 4th quarter. Linscomb Wealth Inc. now owns 15,496 shares of the semiconductor manufacturer’s stock valued at $1,872,000 after buying an additional 1,562 shares during the last quarter. Alecta Tjanstepension Omsesidigt bought a new position in shares of Advanced Micro Devices during the fourth quarter valued at about $165,952,000. Proficio Capital Partners LLC boosted its holdings in shares of Advanced Micro Devices by 16,434.2% during the fourth quarter. Proficio Capital Partners LLC now owns 589,443 shares of the semiconductor manufacturer’s stock worth $71,199,000 after purchasing an additional 585,878 shares during the period. Mn Services Vermogensbeheer B.V. increased its holdings in Advanced Micro Devices by 2.1% during the 4th quarter. Mn Services Vermogensbeheer B.V. now owns 638,096 shares of the semiconductor manufacturer’s stock valued at $77,076,000 after purchasing an additional 13,200 shares during the period. Finally, Flynn Zito Capital Management LLC increased its stake in shares of Advanced Micro Devices by 1.8% during the fourth quarter. Flynn Zito Capital Management LLC now owns 16,859 shares of the semiconductor manufacturer’s stock valued at $2,036,000 after buying an additional 293 shares during the period. 71.34% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Micro Devices Price Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 2.50 and a quick ratio of 1.78. The company has a market cap of $177.37 billion, a PE ratio of 98.21, a price-to-earnings-growth ratio of 1.03 and a beta of 1.66. The business has a 50 day moving average of $125.02 and a 200 day moving average of $140.59.

About Advanced Micro Devices

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.