Advanced Micro Devices Inc. (NASDAQ: AMD) stock jumped 3.85% on Tuesday to $75.25 against a previous-day closing price of $72.46. With 55.31 million shares changed hands, the volume of the stock remained lighter than its average volume of 84.07 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $75.33 whereas the lowest price it dropped to was $72.11. The 52-week range on AMD shows that it touched its highest point at $164.46 and its lowest point at $54.57 during that stretch. It currently has a 1-year price target of $90.13. Beta for the stock currently stands at 1.97.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AMD was down-trending over the past week, with a drop of -1.47%, but this was up by 28.19% over a month. Three-month performance dropped to -18.85% while six-month performance fell -17.45%. The stock lost -50.66% in the past year, while it has lost -47.71% so far this year. A look at the trailing 12-month EPS for AMD yields 1.67 with Next year EPS estimates of 3.66. For the next quarter, that number is 0.67. This implies an EPS growth rate of 24.70% for this year and 3.95% for next year. EPS is expected to grow by 14.79% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 44.60%.
Float and Shares Shorts:
At present, 1.61 billion AMD shares are outstanding with a float of 1.61 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 37.93 million, which was 2.35% higher than short shares on Sep 14, 2022. In addition to Dr. Lisa T. Su Ph.D. as the firm’s Pres, CEO & Chair of the Board, Mr. Devinder Kumar serves as its Exec. VP, CFO & Treasurer.
Through their ownership of 68.28% of AMD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.53% of AMD, in contrast to 40.18% held by mutual funds. Shares owned by individuals account for 30.35%. As the largest shareholder in AMD with 7.92% of the stake, The Vanguard Group, Inc. holds 127,905,672 shares worth 127,905,672. A second-largest stockholder of AMD, BlackRock Fund Advisors, holds 76,772,178 shares, controlling over 4.76% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in AMD, holding 65,895,754 shares or 4.08% stake. With a 3.00% stake in AMD, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 48,435,407 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.29% of AMD stock, is the second-largest Mutual Fund holder. It holds 36,940,221 shares valued at 2.22 billion. Invesco QQQ Trust holds 1.45% of the stake in AMD, owning 23,374,248 shares worth 1.4 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMD since 44 analysts follow the stock currently. There are 29 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AMD analysts setting a high price target of $200.00 and a low target of $60.00, the average target price over the next 12 months is $87.63. Based on these targets, AMD could surge 165.78% to reach the target high and fall by -20.27% to reach the target low. Reaching the average price target will result in a growth of 16.45% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AMD will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $3.88 being high and $3.38 being low. For AMD, this leads to a yearly average estimate of $3.51. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Advanced Micro Devices Inc. surprised analysts by -$0.02 when it reported $0.67 EPS against a consensus estimate of $0.69. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $1.07 and the low estimate is $0.58. The average estimate for the next quarter is thus $0.69.
Summary of Insider Activity:
Insiders traded AMD stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 13,425 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 3,897,179 while 2,165,426 shares were sold.