Advanced Micro Devices (NASDAQ:AMD) Shares Down 4.4% After Insider Selling

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price dropped 4.4% on Monday after an insider sold shares in the company. The stock traded as low as $480.33 and last traded at $493.41. 24,454,785 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 33,644,141 shares. The stock had previously closed at $516.13.

Specifically, CEO Lisa Su sold 25,000 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $506.79, for a total value of $12,669,750.00. Following the completion of the sale, the chief executive officer owned 74,211 shares in the company, valued at $37,609,392.69. This represents a 25.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Lisa Su sold 70,000 shares of Advanced Micro Devices stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the transaction, the chief executive officer owned 3,032,156 shares in the company, valued at approximately $1,536,696,660.80. This represents a 2.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Royal Bank Of Canada restated a “sector perform” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a report on Wednesday, August 5th. Piper Sandler initiated coverage on Advanced Micro Devices in a research report on Wednesday. They issued an “overweight” rating and a $600.00 price objective for the company. Mizuho raised their target price on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a report on Monday, July 27th. Raymond James Financial raised shares of Advanced Micro Devices from an “outperform” rating to a “strong-buy” rating and lifted their price target for the company from $565.00 to $641.00 in a research note on Tuesday, August 25th. Finally, Robert W. Baird set a $1,250.00 price target on shares of Advanced Micro Devices in a report on Friday, July 24th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $565.12.

Key Headlines Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Bernstein reiterated its Buy rating on AMD, signaling continued confidence in the company’s AI accelerator and data-center opportunity. Bernstein reiterates its Buy rating
• Positive Sentiment: AMD’s partnership with F-Secure is intended to improve trust and security around AI systems, potentially supporting enterprise adoption over time. AMD partnership with F-Secure
• Positive Sentiment: AMD and Intel expanded software cooperation through shared AI Compute Extensions support, a move that could make the x86 ecosystem more attractive to developers. AMD and Intel shared AI instructions
• Neutral Sentiment: Analysts and commentators remain constructive on AMD’s longer-term AI prospects, including its workstation products and potential market-share gains, but some note that new products may have limited near-term revenue impact. AMD Halo Station analysis
• Negative Sentiment: Anthropic CEO Dario Amodei and other AI leaders called for a slower, safer pace of AI development. Investors interpreted the remarks as a threat to the rapid data-center and accelerator spending cycle that benefits AMD, Nvidia and other chipmakers. Chip stocks fall on AI slowdown concerns
• Negative Sentiment: Walter Isaacson’s comments that AI companies could face greater legal liability after acknowledging safety risks added regulatory and litigation concerns to the market selloff. Walter Isaacson on AI liability
• Negative Sentiment: Investor caution is also rising because AMD has already surged substantially, trades at a demanding earnings multiple, and reports indicate senior executives have sold shares into the rally. AMD valuation and insider selling analysis

Advanced Micro Devices Stock Performance

The stock’s 50-day moving average price is $495.75 and its 200 day moving average price is $405.29. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The firm has a market cap of $805.48 billion, a P/E ratio of 126.84, a price-to-earnings-growth ratio of 5.35 and a beta of 2.48.

Advanced Micro Devices (NASDAQ:AMD) last issued its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 EPS for the quarter, topping the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The firm had revenue of $11.54 billion for the quarter, compared to analysts’ expectations of $11.31 billion. During the same period in the previous year, the firm posted $0.48 EPS. The company’s revenue for the quarter was up 50.1% on a year-over-year basis. As a group, equities analysts predict that Advanced Micro Devices, Inc. will post 6.43 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Bullseye Investment Management LLC bought a new stake in shares of Advanced Micro Devices during the 2nd quarter worth approximately $44,000. Smith Chas P & Associates PA Cpas acquired a new stake in Advanced Micro Devices in the second quarter valued at $277,000. Talon Private Wealth LLC bought a new position in shares of Advanced Micro Devices in the 2nd quarter valued at about $1,352,000. Rench Wealth Management Inc. bought a new stake in shares of Advanced Micro Devices in the 2nd quarter valued at about $401,000. Finally, Bouchey Financial Group Ltd. raised its holdings in shares of Advanced Micro Devices by 5.7% in the 2nd quarter. Bouchey Financial Group Ltd. now owns 4,386 shares of the semiconductor manufacturer’s stock valued at $2,548,000 after purchasing an additional 238 shares during the period. 71.34% of the stock is currently owned by institutional investors.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive-processing products. Its portfolio includes central processing units (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), field-programmable gate arrays (FPGAs) and adaptive system-on-chip products.

AMD serves customers across data centers, cloud computing, personal computers, gaming consoles, embedded systems and industrial applications.