Citigroup Lowers Advanced Micro Devices Price Target to $175.00

Advanced Micro Devices (NASDAQ:AMD – Free Report) saw its price target reduced by Citigroup from $200.00 to $175.00 in a recent research report released on Tuesday, as reported by Benzinga. Despite the decrease, Citigroup continues to hold a "buy" rating on the semiconductor company’s stock.

Other equity research analysts have also weighed in on AMD’s stock recently. Loop Capital initiated coverage on Advanced Micro Devices on January 14th, labeling it a "buy" with a target price of $175.00. Meanwhile, Rosenblatt Securities reaffirmed a "buy" rating on the stock and set a target price of $250.00 in a report from October 28th. On January 13th, TD Cowen cut its price target from $185.00 to $150.00 while maintaining a "buy" rating. Mizuho also lowered their price target from $180.00 to $160.00, assigning an "outperform" rating. Additionally, Evercore ISI increased their target price from $193.00 to $198.00 with an "outperform" rating as of October 30th. In total, the stock has been rated by two analysts as "sell", six as "hold", twenty-two as "buy", and two as "strong buy". According to MarketBeat, the current consensus rating is "Moderate Buy" with an average target price of $177.71.

Current Trading Information for AMD

On Tuesday, NASDAQ AMD opened at $122.28, with a market capitalization of $198.44 billion. The company has a price-to-earnings ratio of 110.16 and a PEG ratio of 1.07, with a beta of 1.66. The stock is currently below its 50-day simple moving average of $129.42 and is also beneath its 200-day simple moving average of $144.76. The firm exhibits strong liquidity with a quick ratio of 1.78 and a current ratio of 2.50, along with a low debt-to-equity ratio of 0.03. Over the past year, AMD shares have ranged from a low of $114.41 to a high of $227.30.

Quarterly Earnings Results

AMD recently reported its quarterly earnings on October 29th, where it achieved earnings per share (EPS) of $0.92, matching analyst expectations. The company recorded quarterly revenue of $6.82 billion, surpassing analyst predictions of $6.71 billion. AMD reported a return on equity of 6.62% with a net margin of 7.52%. The business's revenue increased by 17.6% year-over-year, as compared to $0.53 EPS earned during the same quarter of the previous year. Analysts project that AMD will post an EPS of 2.54 for the current fiscal year.

Insider Activity

In other news, executive vice president Forrest Eugene Norrod sold 40,540 shares of AMD stock on November 5th at an average price of $141.67, resulting in a total transaction value of approximately $5.74 million. After this transaction, Norrod holds 293,347 shares in the company, valued at around $41.56 million, marking a 12.14% decrease in his position. Additionally, CEO Lisa T. Su sold 76,496 shares on December 4th at an average price of $142.66, totaling about $10.91 million. Following this sale, she retains 3,566,762 shares valued at about $508.83 million, representing a 2.10% decrease in her ownership. Over the last three months, insiders have sold a collective total of 197,036 shares worth approximately $28.17 million, with insiders currently owning 0.65% of the stock.

Institutional Holdings

Several institutional investors have recently adjusted their stakes in AMD. Charles Schwab Investment Management Inc. increased its holdings by 1.9% during the third quarter, now owning 9,656,965 shares valued at about $1.58 billion. Swiss National Bank also raised its stake by 0.3%, owning 4,797,575 shares worth $787.19 million after acquiring an additional 12,500 shares. Furthermore, Shum Financial Group Inc. took new positions in AMD during the same quarter valued at $858,000. State Street Corp also grew its position by 2.3%, now holding 70,170,271 shares worth roughly $11.51 billion after purchasing an extra 1,580,035 shares. Geode Capital Management LLC increased its holdings by 1.3%, now owning 34,243,843 shares valued at around $5.60 billion. Overall, institutional investors and hedge funds currently own 71.34% of AMD’s stock.

Company Overview

Advanced Micro Devices, Inc. operates globally in the semiconductor industry, with distinct segments including Data Center, Client, Gaming, and Embedded. The company produces various products such as x86 microprocessors, graphics processing units (GPUs), chipsets, embedded processors, semi-custom system-on-chip (SoC) products, and offers services and technologies related to microprocessor and SoC development.

AMD, stocks, market