Street Has Mixed Opinions On Advanced Micro Devices, Inc. (AMD)

Analysts at Cowen lifted target price for shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) but repeated their Outperform recommendation for the stock in their opinion released on October 30. The price target has been raised from $33 to $26. Northland Capital analysts bumped their recommendation on AMD stock from Market Perform to Outperform in a separate flash note to investors on October 25. Analysts at Cowen are sticking to their Outperform recommendation. However, on October 18, they lifted target price for these shares to $33 from $30. Analysts at Cowen, made their first call for the stock with a Outperform rating, according to a research note that dated back to October 18.

Short sellers are betting against Advanced Micro Devices, Inc. (NASDAQ:AMD). Looking at the sentiment indicator for the AMD stock we see that the short-interest ratio is at 1.117812 while the average analyst recommendations at 2.6 suggests buying these shares. Between October 31 and November 15, the total number of shorted shares amounted to 121 million shares. That was 5.22% more than the total of 115 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for Advanced Micro Devices, Inc. at the November 15th settlement plunged to 108,000,000, as compared to 113,000,000 at the October 31st report. That brought days to cover to a 9.91% increase from the 1.017023 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Advanced Micro Devices, Inc. (NASDAQ:AMD)’s prospects. The earliest insider trade took place on 11/28/2018. Kumar Devinder parted with a total of 41.21 thousand shares of company at average share price of $21.25. The total for the sales was set at $875.78 thousand. After this transaction, the SVP, CFO & Treasurer account balance stood at 548.6 thousand shares. The stock grew 11.58 percent since that insider sale. On 11/16/2018, Smith Darla M, Chief Accounting Officer, sold 0.62 thousand shares at a price per share of $19.9. This removed 12.42 thousand shares from the insider’s fortune and the stock saw a 19.15 percent rally in value since the news became public. This transaction left 29.39 thousand shares in the Chief Accounting Officer account. On 11/12/2018, SVP & GM DESG Norrod Forrest Eugene performed a sale transaction worth $1.24 million. This sale at $19.78 each has eliminated 62.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 19.87 percent increase since the transaction was reported. The insider now is left with 843.29 thousand shares remaining in the account. Su Lisa T, who performs the President & CEO job, sold 175.55 thousand shares for $3.81 million. The disposal occurred on 11/07/2018 was priced at $21.73 per share. The share price soared 9.11 percent since the reporting date. Su Lisa T now left with a stake of 2.5 million AMD stock worth $52.88 million after the insider selling.

Advanced Micro Devices, Inc. (AMD) is expected to jump by 14.44 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40-month high price target. This represents a whopping 89.39 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $25, which represents a return potential of 18.37 percent when compared to the closing price of the stock of $21.12 on Tuesday, December 04. The lowest price target for the stock is $7 — slightly more than -66.86 percent from AMD’s current share price.

The shares are currently floating around the first support level of $20.32. Below this, the next support is placed in the zone of $19.52. Till the time, the AMD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.82 on daily chart, which may remain a cause for concern. If the price breaks below $19.52 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $22.67 mark may result into a pull-back move towards $24.22 level.

AMD shares dropped -2.59 points or -10.92 percent on Tuesday to $21.12 with a heavy trade volume of 127 million shares. After opening the session at $23.35, the shares went as high as $23.42 and as low as $21.07, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $21.2 billion and now has 1.01 billion shares outstanding. Advanced Micro Devices, Inc. (AMD) stock has gained 4.4 percent of market value in 21 trading days.

AMD stock has a trailing 3-year beta of 3.66, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.54 a share in the trailing twelve months. The stock’s value has surged 105.45 percent year to date (YTD) against a rise of 110.57 percent in 12 month’s time. The company’s shares still trade -38.14 percent away from its 1-year high of $34.14 and 133.63 percent up from 52-week low of $9.04. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Advanced Micro Devices, Inc. (AMD) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry AMD operates in has an average P/E of 7.69. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 3.25 on the Price-to-Sales ratio. Compare this with the industry average P/S of 12.94. 37.1 percent is the gross profit margin for Advanced Micro Devices, Inc. and operating margin sits at 7.7 percent. Along with this, the net profit margin is 5.5 percent.

AMD will be showing off its Q4 earnings on January 22. Analysts are forecasting revenue to suffer decline of -1.6 percent to $1.46B in the next fiscal quarter, while earnings are seen soaring by nearly 12.5 percent to $0.09 per share. History has shown that shares in Advanced Micro Devices, Inc. have gone down on 22 different earnings reaction days and are predicted to add 0.09 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.13 per share, better than the $0.12, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.65B, worse than the $1.7B analysts expected. Earnings are estimated to increase by -75.8 percent this year, 36.44 percent next year and continue to increase by 0.56 percent annually for the next 5 years.