CICC Research Upgrades AMD Shares, Target Price Set at $265

CICC Research has upgraded shares of Advanced Micro Devices (NASDAQ: AMD) from a market perform rating to an outperform rating in a report released on October 6, 2023. The firm has set a target price of $265.00 for the semiconductor manufacturer’s stock, indicating a positive outlook for the company amid an evolving market landscape.

Other analysts have also weighed in on AMD’s performance. Weiss Ratings downgraded the stock from a “hold (c-)” rating to a “sell (d+)” on October 8. Conversely, Evercore ISI raised its target price on AMD shares from $240.00 to $270.00, maintaining an “outperform” rating. Raymond James Financial also increased its price target for AMD from $120.00 to $200.00 and assigned an “outperform” rating in a note released on August 6. Furthermore, Wedbush raised its price objective from $270.00 to $290.00 and maintained an “outperform” rating.

Analyst consensus indicates strong support for AMD, with three investment analysts issuing a Strong Buy rating, twenty-eight analysts recommending Buy, ten advising Hold, and one suggesting Sell. According to data from MarketBeat.com, AMD holds an average rating of “Moderate Buy” with an average target price of $263.26.

Recent Earnings Performance

AMD’s latest quarterly earnings report, released on November 4, 2023, showed promising results. The company reported earnings per share (EPS) of $1.20, which exceeded analysts’ consensus estimates of $1.17 by $0.03. The firm achieved a return on equity of 7.54% and a net margin of 9.57%. Revenue for the quarter reached $9.25 billion, surpassing the estimated $8.76 billion.

This marks a significant increase from the same quarter last year, where AMD posted an EPS of $0.92. The year-over-year revenue growth stands at 35.6%. Analysts anticipate that AMD will post an EPS of 3.87 for the current fiscal year.

Insider Trading Activity

In related news, insider trading activity has been noteworthy. On October 6, 2023, Senior Vice President Ava Hahn sold 2,868 shares at an average price of $226.01, totaling approximately $648,196.68. Following this transaction, Ms. Hahn holds 9,033 shares valued at around $2,041,548.33, reflecting a 24.10% decrease in her ownership.

Additionally, Executive Vice President Paul Darren Grasby sold 10,000 shares on August 12 at an average price of $173.21, resulting in a total of $1,732,100.00. After this sale, Mr. Grasby retained 125,505 shares valued at approximately $21,738,721.05, representing a 7.38% drop in ownership. Over the past 90 days, insiders have sold a total of 274,118 shares valued at $46,180,719, with insiders currently owning 0.06% of the stock.

Institutional Investment Trends

Recent activity among institutional investors and hedge funds shows a dynamic shift in AMD’s ownership. Norges Bank made a significant investment in AMD during the second quarter, acquiring a stake valued at $3,094,662,000. Kingstone Capital Partners also entered the fray with a new stake valued at $958,422,000.

Goldman Sachs Group Inc. increased its position in AMD by 169.7% in the first quarter, now holding 9,855,341 shares worth around $1,012,538,000 after purchasing an additional 6,200,850 shares. T. Rowe Price Investment Management Inc. similarly boosted its stake by 131.5%, now owning 10,413,139 shares valued at approximately $1,069,846,000 post a purchase of 5,915,185 shares.

Overall, 71.34% of AMD’s stock is currently held by institutional investors and hedge funds. As AMD continues to navigate the competitive semiconductor market, analysts and investors are keeping a close watch on the company’s performance and strategic moves.