Advanced Micro Devices, Inc. (AMD) Stock Rating Lowered by Zacks Investment Research
Advanced Micro Devices, Inc. (NASDAQ:AMD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “AMD is benefiting from strong graphics processor unit (GPU) sales. This was evident from the fact that third-quarter revenues were the highest since 2011, primarily driven by robust performance of the company’s product portfolio comprising Ryzen, EPYC and Radeon Vega. Moreover, the company’s collaborations with Baidu, Amazon, Tencent, Microsoft and JD.com are expected to drive top-line going forward. Notably, AMD has outperformed the industry it belongs to. However, management’s guidance for a sequential decline in revenues doesn’t bode well for investors in the near term. Moreover, higher costs related to product introductions are likely to impact the company’s near-term profitability. Additionally, increasing competition from the likes of NVIDIA remains a concern. We also believe that the departure of Raja Koduri, chief architect of the Radeon Group, is a near-term headwind for the company.”
Several other equities research analysts also recently weighed in on AMD. Jefferies Group LLC reaffirmed a “buy” rating and issued a $11.12 price objective (down previously from $19.00) on shares of Advanced Micro Devices in a report on Friday. Sanford C. Bernstein downgraded shares of Advanced Micro Devices to a “sell” rating in a report on Monday, October 30th. Morgan Stanley downgraded shares of Advanced Micro Devices from an “equal weight” rating to an “underweight” rating and upped their price objective for the stock from $8.00 to $11.00 in a report on Monday, October 30th. TheStreet raised shares of Advanced Micro Devices from a “d” rating to a “c-” rating in a report on Tuesday, October 24th. Finally, Credit Suisse Group upped their price objective on shares of Advanced Micro Devices from $10.50 to $12.00 and gave the stock a “neutral” rating in a report on Wednesday, October 25th. Seven equities research analysts have rated the stock with a sell rating, fifteen have issued a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company’s stock. Advanced Micro Devices has an average rating of “Hold” and a consensus price target of $14.05.
Advanced Micro Devices (NASDAQ AMD) traded up $0.14 during trading on Friday, hitting $11.26. 50,209,900 shares of the stock traded hands, compared to its average volume of 69,318,712. The company has a debt-to-equity ratio of 2.61, a current ratio of 1.70 and a quick ratio of 1.20. Advanced Micro Devices has a fifty-two week low of $6.47 and a fifty-two week high of $15.65.
In related news, CEO Lisa T. Su sold 325,000 shares of the firm’s stock in a transaction on Tuesday, September 12th. The stock was sold at an average price of $12.46, for a total value of $4,049,500.00. Following the completion of the transaction, the chief executive officer now directly owns 2,037,139 shares of the company’s stock, valued at $25,382,751.94. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Darla M. Smith sold 8,172 shares of the firm’s stock in a transaction on Wednesday, August 16th. The stock was sold at an average price of $12.85, for a total value of $105,010.20. Following the completion of the transaction, the insider now directly owns 34,934 shares of the company’s stock, valued at $448,901.90. The disclosure for this sale can be found here. Insiders sold 1,333,877 shares of company stock valued at $16,340,764 over the last three months. 1.60% of the stock is owned by company insiders.
Hedge funds have recently modified their holdings of the stock. Bronfman E.L. Rothschild L.P. lifted its position in Advanced Micro Devices by 1,655.2% in the third quarter. Bronfman E.L. Rothschild L.P. now owns 8,741 shares of the semiconductor manufacturer’s stock worth $111,000 after purchasing an additional 8,243 shares during the period. K.J. Harrison & Partners Inc bought a new position in Advanced Micro Devices in the second quarter worth $125,000. First Personal Financial Services bought a new position in Advanced Micro Devices in the third quarter worth $127,000. 1492 Capital Management LLC bought a new position in Advanced Micro Devices in the third quarter worth $128,000. Finally, Regal Investment Advisors LLC bought a new position in Advanced Micro Devices in the second quarter worth $137,000. 59.05% of the stock is owned by hedge funds and other institutional investors.
About Advanced Micro Devices
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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