Zacks Investment Research downgraded shares of Advanced Micro Devices (NASDAQ:AMD) from a hold rating to a sell rating in a research report report published on Tuesday.
According to Zacks, “Shares of AMD have unperformed the industry it belongs to in the last one year. Recently, few reports suggested a decline in cryptocurrency mining demand which could be negatively impacting the GPU market. Per Moore, the impact of sluggish cryptocurrency demand is likely to have a bigger impact on AMD’s business. The company recently said its revenue exposure to the crypto market was in the mid-single digits last year, and Morgan Stanley’s latest note estimates that this exposure climbed to about 10% in the fourth quarter. Further, a highly leveraged balance sheet and stiff competition from the likes of NVIDIA remains a concern. Nonetheless, AMD is benefitting from the robust performance of its product portfolio comprising Ryzen CPU, EPYC and Radeon Vega GPUs. Moreover, strong adoption of EPYC server processors is a growth driver.”
AMD has been the subject of a number of other reports. Susquehanna Bancshares reaffirmed a negative rating on shares of Advanced Micro Devices in a research note on Monday, March 26th. Vetr raised shares of Advanced Micro Devices from a sell rating to a hold rating and set a $13.28 price target for the company in a research note on Monday, February 5th. Credit Suisse Group upped their price target on shares of Advanced Micro Devices from $12.00 to $13.50 and gave the stock a neutral rating in a research note on Wednesday, January 31st. ValuEngine lowered shares of Advanced Micro Devices from a hold rating to a sell rating in a research note on Wednesday, March 7th. Finally, Bank of America reaffirmed a positive rating and issued a $11.52 price target (down from $18.00) on shares of Advanced Micro Devices in a research note on Tuesday, March 13th. Eight research analysts have rated the stock with a sell rating, eleven have issued a hold rating and fourteen have issued a buy rating to the company. Advanced Micro Devices currently has a consensus rating of Hold and an average target price of $14.49.
Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, January 30th. The semiconductor manufacturer reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.04 by $0.04. The company had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.40 billion. Advanced Micro Devices had a net margin of 0.81% and a return on equity of 16.76%. The business’s revenue for the quarter was up 33.8% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.01) EPS. equities analysts forecast that Advanced Micro Devices will post 0.3 earnings per share for the current year.
In other news, insider Mark D. Papermaster sold 173,630 shares of the business’s stock in a transaction that occurred on Tuesday, January 16th. The shares were sold at an average price of $12.08, for a total transaction of $2,097,450.40. Following the sale, the insider now owns 1,331,579 shares in the company, valued at $16,085,474.32. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mark D. Papermaster sold 100,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $11.57, for a total transaction of $1,157,000.00. Following the sale, the insider now owns 1,057,949 shares in the company, valued at approximately $12,240,469.93. The disclosure for this sale can be found here. Insiders have sold 1,158,620 shares of company stock worth $13,933,528 in the last 90 days. 1.80% of the stock is owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the company. NINE MASTS CAPITAL Ltd acquired a new stake in shares of Advanced Micro Devices during the fourth quarter valued at approximately $102,000. Chilton Investment Co. LLC purchased a new position in Advanced Micro Devices during the fourth quarter valued at approximately $103,000. Stone Ridge Asset Management LLC purchased a new position in Advanced Micro Devices during the fourth quarter valued at approximately $104,000. Cetera Investment Advisers purchased a new position in Advanced Micro Devices during the third quarter valued at approximately $137,000. Finally, Ellington Management Group LLC purchased a new position in Advanced Micro Devices during the fourth quarter valued at approximately $114,000. Institutional investors and hedge funds own 62.15% of the company’s stock.
Advanced Micro Devices Company Profile
Advanced Micro Devices, Inc is a global semiconductor company. The Company is engaged in offering x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs) and professional graphics, and server and embedded processors and semi-custom System-on-Chip (SoC) products and technology for game consoles.
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