Citigroup Lowers Price Target for Advanced Micro Devices to $175.00

On January 22, 2025, Advanced Micro Devices (NASDAQ:AMD) had its price target reduced by Citigroup from $200.00 to $175.00, as reported in a recent research analysis. Despite the adjustment, Citigroup maintains a "buy" rating on the semiconductor company's stock.

Other equity research analysts have also expressed their views on AMD. Loop Capital initiated coverage of Advanced Micro Devices on January 14, giving the stock a "buy" rating and a target price of $175.00. On the other hand, Rosenblatt Securities reaffirmed their "buy" rating and set a higher target price of $250.00 for AMD shares on October 28. TD Cowen, in a report dated January 13, lowered their price target from $185.00 to $150.00 while keeping a "buy" rating. Additionally, Mizuho reduced their price target from $180.00 to $160.00 but rated the company as "outperform" in a report published on January 10. Evercore ISI raised its price objective from $193.00 to $198.00, also selecting an "outperform" rating on October 30.

In terms of analyst ratings, two have assigned a sell rating, six have given a hold rating, and twenty-two have issued a buy rating, with two more rating it as a strong buy. According to MarketBeat, AMD has an overall consensus rating of "Moderate Buy" and an average target price of $177.71.

AMD Trading Performance

As of Tuesday, AMD stock opened at $122.28. The company boasts a market capitalization of $198.44 billion, alongside a price-to-earnings ratio of 110.16 and a PEG ratio of 1.07. Currently, AMD has a quick ratio of 1.78 and a current ratio of 2.50. The stock has a debt-to-equity ratio of 0.03, indicating a relatively low level of debt. Over the past year, AMD has experienced a low of $114.41 and a high of $227.30.

Recent Earnings Announcement

Advanced Micro Devices released its quarterly earnings results on October 29, reporting earnings per share (EPS) of $0.92, in line with analysts’ expectations. The quarterly revenue came in at $6.82 billion, surpassing the expected $6.71 billion. AMD's return on equity stood at 6.62%, with a net margin of 7.52%. Year-over-year, the revenue increased by 17.6%, while EPS for the same quarter last year was $0.53. Analysts anticipate that AMD will achieve an EPS of 2.54 for the current fiscal year.

Insider Trading Activity

In other notable news, Executive Vice President Forrest Eugene Norrod sold 40,540 shares of AMD on November 5, obtaining an average price of $141.67 per share, totaling approximately $5.74 million. Following this transaction, he owns about 293,347 shares valued at around $41.56 million, reflecting a 12.14% decrease in his holdings. Additionally, CEO Lisa T. Su sold 76,496 shares on December 4 for an average price of $142.66, bringing her total sales value to about $10.91 million. After the transaction, she retains ownership of 3,566,762 shares valued at around $508.83 million, marking a 2.10% decrease in her stake. In total, insiders have sold 197,036 shares over the past ninety days, amounting to approximately $28.17 million, with corporate insiders holding around 0.65% of the company's stock.

Institutional Investor Activity

Recently, various institutional investors and hedge funds have adjusted their holdings in AMD. For instance, Charles Schwab Investment Management increased its stake by 1.9% in the third quarter, acquiring an additional 177,700 shares, bringing its total ownership to 9,656,965 shares valued at about $1.58 billion. Similarly, Swiss National Bank raised its holdings by 0.3%, now owning 4,797,575 shares worth approximately $787.19 million after buying 12,500 additional shares. Other notable movements include Shum Financial Group starting a new position valued at $858,000 during the third quarter. State Street Corp grew its holdings by 2.3%, acquiring over 1.58 million shares in the same period. Geode Capital Management increased its stake by 1.3%, holding 34,243,843 shares worth about $5.60 billion now. Institutional investors and hedge funds currently own roughly 71.34% of AMD's stock.

About Advanced Micro Devices

Advanced Micro Devices, Inc. operates as a leading semiconductor company globally, producing x86 microprocessors and graphics processing units (GPUs), as well as offering system-on-chip (SoC) products, chipsets, and other related technologies.

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