Advanced Micro Devices Inc. (NASDAQ: AMD) stock fell -4.82% on Friday to $101.49 against a previous-day closing price of $106.63. With 70.86 million shares changed hands, the volume of the stock remained heavier than its average volume of 62.32 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $106.75 whereas the lowest price it dropped to was $101.28. The 52-week range on AMD shows that it touched its highest point at $132.83 and its lowest point at $54.57 during that stretch. It currently has a 1-year price target of $138.53. Beta for the stock currently stands at 1.80.
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 -4.34%, but this was down by -5.32% over a month. Three-month performance dropped to -18.31% while six-month performance rose 5.06%. The stock gained 31.04% in the past year, while it has gained 56.69% so far this year. A look at the trailing 12-month EPS for AMD yields -0.02 with Next year EPS estimates of 4.15. For the next quarter, that number is 0.68. This implies an EPS growth rate of -67.30% for this year and 50.60% for next year. EPS is expected to grow by 8.96% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 21.90%.
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 Aug 30, 2023, short shares totaled 28.18 million, which was 1.74% higher than short shares on Jul 30, 2023. In addition to Dr. Lisa T. Su Ph.D. as the firm’s Chair & CEO, Mr. Victor Peng serves as its Pres.
Through their ownership of 74.47% of AMD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.66% of AMD, in contrast to 41.64% held by mutual funds. Shares owned by individuals account for 30.48%. As the largest shareholder in AMD with 8.19% of the stake, The Vanguard Group, Inc. holds 132,259,012 shares worth 132,259,012. A second-largest stockholder of AMD, BlackRock Fund Advisors, holds 78,777,829 shares, controlling over 4.88% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in AMD, holding 65,188,143 shares or 4.04% stake. With a 3.10% stake in AMD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 50,158,224 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.40% of AMD stock, is the second-largest Mutual Fund holder. It holds 38,784,020 shares valued at 4.1 billion. Invesco QQQ Trust holds 1.68% of the stake in AMD, owning 27,126,961 shares worth 2.87 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 30, 2023, AMD reported revenue of $6.55B and operating income of $526.00M. The EBITDA in the recently reported quarter was $1.14B and diluted EPS was $0.27.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMD since 0 analysts follow the stock currently. 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 $95.00, the average target price over the next 12 months is $143.00. Based on these targets, AMD could surge 97.06% to reach the target high and fall by -6.39% to reach the target low. Reaching the average price target will result in a growth of 40.9% 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.
Summary of Insider Activity:
Insiders traded AMD stock several times over the past three months with 18 Buys and 22 Sells. In these transactions, 758,073 shares were bought while 376,238 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 75 over the past year. The total number of shares bought during that period was 2,656,242 while 2,024,161 shares were sold.