Advanced Micro Devices (NASDAQ:AMD) Trading Down 9.3% on Disappointing Earnings

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price was down 9.3% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $106.50 and last traded at $108.35. Approximately 49,904,440 shares traded hands during mid-day 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 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 Ratings Changes

Several brokerages have weighed in on AMD. Roth Mkm reiterated a “buy” rating and issued a $200.00 target price on shares of Advanced Micro Devices in a research note on Friday, October 11th. Rosenblatt Securities reiterated a “buy” rating and issued a $250.00 price objective on shares of Advanced Micro Devices in a research report on Tuesday. Loop Capital started coverage on shares of Advanced Micro Devices in a research report on Tuesday, January 14th. They set a “buy” rating and a $175.00 price objective for the company. KeyCorp cut their price objective on Advanced Micro Devices from $150.00 to $140.00 and set an “overweight” rating for the company in a research report on Wednesday. Finally, StockNews.com cut Advanced Micro Devices from a “hold” rating to a “sell” rating in a report on Tuesday, January 14th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating, nineteen have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, Advanced Micro Devices currently has an average rating of “Moderate Buy” and an average target price of $166.08.

Insider Activity

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

Institutional Trading of Advanced Micro Devices

Hedge funds have recently modified their holdings of the stock. Christopher J. Hasenberg Inc grew its holdings in Advanced Micro Devices by 12.0% in the 3rd quarter. Christopher J. Hasenberg Inc now owns 560 shares of the semiconductor manufacturer’s stock valued at $97,000 after buying an additional 60 shares during the last quarter. Wealth Effects LLC lifted its position in Advanced Micro Devices by 0.7% in the third quarter. Wealth Effects LLC now owns 9,419 shares of the semiconductor manufacturer’s stock worth $1,545,000 after purchasing an additional 65 shares during the period. Jacobsen Capital Management increased its holdings in Advanced Micro Devices by 2.1% in the 3rd quarter. Jacobsen Capital Management now owns 3,378 shares of the semiconductor manufacturer’s stock valued at $554,000 after buying an additional 70 shares during the period. Sigma Investment Counselors Inc. raised its stake in shares of Advanced Micro Devices by 5.3% in the 3rd quarter. Sigma Investment Counselors Inc. now owns 1,482 shares of the semiconductor manufacturer’s stock valued at $243,000 after buying an additional 74 shares in the last quarter. Finally, Bedell Frazier Investment Counselling LLC lifted its holdings in shares of Advanced Micro Devices by 4.3% during the 3rd quarter. Bedell Frazier Investment Counselling LLC now owns 1,780 shares of the semiconductor manufacturer’s stock worth $292,000 after acquiring an additional 74 shares during the period. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Advanced Micro Devices Stock Performance

The firm has a market capitalization of $177.37 billion, a price-to-earnings ratio of 98.21, a price-to-earnings-growth ratio of 1.03 and a beta of 1.66. The firm’s 50-day moving average price is $125.02 and its two-hundred day moving average price is $140.59. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.78 and a current ratio of 2.50.

Advanced Micro Devices Company Profile

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.