Advanced Micro Devices Inc. (NASDAQ: AMD)’s stock price has plunge by 2.37relation to previous closing price of 153.76. Nevertheless, the company has seen a 7.34% surge in its stock price over the last five trading sessions. The Motley Fool reported 2024-04-28 that AMD estimates the market for data center AI chips will reach $400 billion by 2027. Growing sales of data center solutions are expected to lead to robust earnings growth.
Is It Worth Investing in Advanced Micro Devices Inc. (NASDAQ: AMD) Right Now?
Advanced Micro Devices Inc. (NASDAQ: AMD) has a price-to-earnings ratio of 300.78x that is above its average ratio. Additionally, the 36-month beta value for AMD is 1.67. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 5 rating it as “overweight,” 15 rating it as “hold,” and 4 rating it as “sell.”
The public float for AMD is 1.60B and currently, short sellers hold a 2.02% ratio of that float. The average trading volume of AMD on April 29, 2024 was 69.02M shares.
AMD’s Market Performance
AMD’s stock has seen a 7.34% increase for the week, with a -12.36% drop in the past month and a -11.20% fall in the past quarter. The volatility ratio for the week is 3.76%, and the volatility levels for the past 30 days are at 3.92% for Advanced Micro Devices Inc. The simple moving average for the past 20 days is -4.23% for AMD’s stock, with a 15.09% simple moving average for the past 200 days.
Analysts’ Opinion of AMD
Many brokerage firms have already submitted their reports for AMD stocks, with TD Cowen repeating the rating for AMD by listing it as a “Buy.” The predicted price for AMD in the upcoming period, according to TD Cowen is $200 based on the research report published on April 18, 2024 of the current year 2024.
HSBC Securities, on the other hand, stated in their research note that they expect to see AMD reach a price target of $225, previously predicting the price at $180. The rating they have provided for AMD stocks is “Buy” according to the report published on April 16th, 2024.
Evercore ISI gave a rating of “Outperform” to AMD, setting the target price at $200 in the report published on April 16th of the current year.
AMD Trading at -11.48% from the 50-Day Moving Average
After a stumble in the market that brought AMD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -30.75% of loss for the given period.
Volatility was left at 3.92%, however, over the last 30 days, the volatility rate increased by 3.76%, as shares sank -12.79% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.92% lower at present.
During the last 5 trading sessions, AMD rose by +7.34%, which changed the moving average for the period of 200-days by +37.37% in comparison to the 20-day moving average, which settled at $163.20. In addition, Advanced Micro Devices Inc. saw 6.78% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AMD starting from Papermaster Mark D, who sale 16,200 shares at the price of $164.25 back on Apr 15 ’24. After this action, Papermaster Mark D now owns 1,554,602 shares of Advanced Micro Devices Inc., valued at $2,660,850 using the latest closing price.
Papermaster Mark D, the Chief Technology Officer & EVP of Advanced Micro Devices Inc., sale 16,200 shares at $186.73 during a trade that took place back on Mar 15 ’24, which means that Papermaster Mark D is holding 1,554,602 shares at $3,025,082 based on the most recent closing price.
Stock Fundamentals for AMD
Current profitability levels for the company are sitting at:
- 0.02 for the present operating margin
- 0.46 for the gross margin
The net margin for Advanced Micro Devices Inc. stands at 0.04. The total capital return value is set at 0.01. Equity return is now at value 1.54, with 1.26 for asset returns.
Based on Advanced Micro Devices Inc. (AMD), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 0.56. The debt to equity ratio resting at 0.05. The interest coverage ratio of the stock is 4.19.
Currently, EBITDA for the company is 4.15 billion with net debt to EBITDA at -0.25. When we switch over and look at the enterprise to sales, we see a ratio of 11.17. The receivables turnover for the company is 4.21for trailing twelve months and the total asset turnover is 0.33. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.51.
Conclusion
In conclusion, Advanced Micro Devices Inc. (AMD) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
