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

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

Advanced Micro Devices Stock Performance

Shares of AMD opened at $114.99 on Friday. The company has a quick ratio of 1.83, a current ratio of 2.62 and a debt-to-equity ratio of 0.03. The business’s 50 day moving average price is $98.53 and its 200-day moving average price is $115.48. Advanced Micro Devices has a 52 week low of $76.48 and a 52 week high of $187.28. The stock has a market cap of $186.45 billion, a P/E ratio of 116.15, a P/E/G ratio of 1.11 and a beta of 1.97.

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

Analysts Set New Price Targets

A number of brokerages have recently issued reports on AMD. Benchmark reaffirmed a “buy” rating and set a $170.00 price objective on shares of Advanced Micro Devices in a research note on Tuesday, February 18th. Barclays cut their target price on Advanced Micro Devices from $140.00 to $110.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 22nd. Wolfe Research cut Advanced Micro Devices from an “outperform” rating to a “peer perform” rating in a research note on Thursday, January 16th. Dbs Bank cut Advanced Micro Devices from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 8th. Finally, Melius cut Advanced Micro Devices from a “buy” rating to a “hold” rating and cut their target price for the stock from $160.00 to $129.00 in a research note on Tuesday, January 28th. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating, twenty have assigned a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $131.45.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Mark D. Papermaster sold 17,500 shares of the business’s stock in a transaction on Tuesday, April 15th. The shares were sold at an average price of $95.47, for a total transaction of $1,670,725.00. Following the completion of the sale, the executive vice president now directly owns 1,713,710 shares in the company, valued at approximately $163,607,893.70. The trade was a 1.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.06% of the stock is owned by company insiders.

About Advanced Micro Devices

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.