Share Repurchase Program Approved by Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices (NASDAQ:AMD) declared that its Board of Directors has authorized a stock buyback plan on Wednesday, May 14th, RTT News reports. The company plans to repurchase $6.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to buy up to 3.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

AMD has been the subject of several analyst reports. Loop Capital decreased their price objective on Advanced Micro Devices from $175.00 to $140.00 and set a “buy” rating for the company in a report on Wednesday, May 7th. Wolfe Research cut Advanced Micro Devices from an “outperform” rating to a “peer perform” rating in a report on Thursday, January 16th. Argus set a $160.00 price target on Advanced Micro Devices in a report on Thursday, February 6th. UBS Group reduced their price target on Advanced Micro Devices from $155.00 to $150.00 and set a “buy” rating for the company in a report on Wednesday, May 7th. Finally, Melius Research set a $110.00 price target on Advanced Micro Devices in a report on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, twenty have assigned a buy rating and three have issued a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $131.45.

Advanced Micro Devices Price Performance

NASDAQ:AMD opened at $114.99 on Friday. The firm has a market capitalization of $186.45 billion, a price-to-earnings ratio of 116.15, a P/E/G ratio of 1.11 and a beta of 1.97. Advanced Micro Devices has a 52-week low of $76.48 and a 52-week high of $187.28. The stock has a fifty day moving average of $98.53 and a 200 day moving average of $115.48. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.83 and a current ratio of 2.62.

Advanced Micro Devices (NASDAQ:AMD) last posted its quarterly earnings data on Tuesday, May 6th. The semiconductor manufacturer reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.03. The company had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.10 billion. Advanced Micro Devices had a return on equity of 7.42% and a net margin of 6.36%. The firm’s quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter last year, the company earned $0.62 earnings per share. On average, research analysts expect that Advanced Micro Devices will post 3.87 EPS for the current fiscal year.

Insider Transactions at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 17,500 shares of the firm’s stock in a transaction dated Tuesday, April 15th. The stock was sold at an average price of $95.47, for a total transaction of $1,670,725.00. Following the sale, the executive vice president now owns 1,713,710 shares in the company, valued at $163,607,893.70. This trade represents a 1.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.06% of the stock is currently owned by insiders.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products.