CICC Research has upgraded shares of Advanced Micro Devices (NASDAQ: AMD) from a market perform to an outperform rating, indicating increased confidence in the semiconductor manufacturer’s future performance. The firm set a target price of $265.00 for the stock in a report released on October 6, 2023.
In a contrasting view, Weiss Ratings downgraded AMD from a “hold (c-)” to a “sell (d+)” rating just two days earlier on October 4, 2023. This mixed sentiment among analysts reflects varying perspectives on the company’s trajectory. In a more favorable move, Evercore ISI raised its target price from $240.00 to $270.00, maintaining an outperform rating as well. Similarly, Raymond James Financial increased its estimate from $120.00 to $200.00, and Wedbush raised its price objective from $270.00 to $290.00.
Current ratings for AMD indicate a robust analyst interest, with three analysts issuing a Strong Buy rating, twenty-eight providing a Buy rating, ten a Hold rating, and one a Sell rating. As reported by MarketBeat.com, the average rating for AMD stands at “Moderate Buy,” with an average target price of $263.26.
Recent Earnings and Insider Activity
AMD’s financial performance has shown notable improvement. In its latest earnings report released on November 4, 2023, the company reported earnings per share (EPS) of $1.20, surpassing analyst expectations of $1.17 by $0.03. The company achieved a return on equity of 7.54% and a net margin of 9.57%. Revenue for the quarter reached $9.25 billion, significantly exceeding the projected $8.76 billion and representing a 35.6% increase compared to the same quarter last year.
In related news, AMD’s senior vice president, Ava Hahn, sold 2,868 shares on October 6, 2023, for approximately $648,196.68. This transaction reduced Hahn’s ownership to 9,033 shares, valued at around $2,041,548.33. Another executive, Paul Darren Grasby, also sold 10,000 shares on August 12, 2023, for a total of approximately $1,732,100.00. Collectively, insiders have sold 274,118 shares valued at $46,180,719 over the past 90 days, leaving insiders with a mere 0.06% stake in the company.
Institutional Investor Activity
Recent changes in institutional investment reflect growing interest in AMD. Norges Bank acquired a new stake worth approximately $3.09 billion in the second quarter. Additionally, Kingstone Capital Partners Texas LLC purchased a stake valued at $958.42 million, while Goldman Sachs Group Inc. increased its holdings by 169.7%, owning now over 9.85 million shares valued at about $1.01 billion after adding 6.2 million shares to its portfolio.
Moreover, T. Rowe Price Investment Management Inc. boosted its stake by 131.5%, now holding over 10.41 million shares worth around $1.07 billion. Overall, institutional and hedge fund investors control approximately 71.34% of AMD’s stock, indicating strong institutional confidence in the company’s prospects.
As Advanced Micro Devices continues to navigate a competitive market, analysts and institutional investors alike will be closely monitoring its financial performance and strategic initiatives in the upcoming quarters.
