Advanced Micro Devices, Inc. (AMD): Be Fearful When Others Are Greedy

Considering all key technical indicators, a 32% Sell signal has occurred for Advanced Micro Devices, Inc. (NASDAQ:AMD). The stock is also flashing a Hold from the Barchart TrendSpotter trading system. Traders hoping to speculate on the AMD’s short-term trajectory should know that short terms indicators for the stock averaged 20% Sell with an average daily trading volume over the past 20 days at 99854094 shares. AMD stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 109976266 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $20.44. Below this, the next support is placed in the zone of $19.57. Till the time, the AMD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 49.67 on daily chart, which may remain a cause for concern. If the price breaks below $19.57 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $21.79 mark may result into a pull-back move towards $22.27 level.

Advanced Micro Devices, Inc. (AMD) is projected to climb by 13.47 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 87.79 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 17.37 percent when compared to the closing price of the stock of $21.3 on Thursday, December 06. The lowest price target for the stock is $7 — slightly more than -67.14 percent from AMD’s current share price.

Here’s a rundown of insider trading activity for sense of Advanced Micro Devices, Inc. (NASDAQ:AMD). 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 lost -0.61 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 6.13 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 6.77 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 plunged -2.81 percent since the reporting date. Su Lisa T now left with a stake of 2.5 million AMD stock worth $53.33 million after the insider selling.

AMD shares accumulated 0.18 points or 0.85 percent on Thursday to $21.3 with a light trade volume of 103 million shares. After opening the session at $20.22, the shares went as high as $21.41 and as low as $20.06, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $21.4 billion and now has 1.01 billion shares outstanding. Advanced Micro Devices, Inc. (AMD) stock has gained 7.04 percent of market value in 21 trading days.

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.

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 107.2 percent year to date (YTD) against a rise of 114.93 percent in 12 month’s time. The company’s shares still trade -37.61 percent away from its 1-year high of $34.14 and 135.62 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 3.28 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 declaring its Q4 financial results on January 22. Analysts are forecasting revenue to suffer decline of -1.7 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.