Advanced Micro Devices (AMD) has been in the news for its impressive growth and high ratings by reputable research firms. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. recently increased its position in AMD by 10.6% during the fourth quarter, according to the company’s most recent Form 13F filing with the Securities & Exchange Commission. With this increase in ownership, Mitsubishi UFJ Kokusai now owned around 1,374,022 shares of AMD worth approximately $87,965,000 as of their latest SEC filing.
As a semiconductor business that operates through two segments – Computing & Graphics and Enterprise, Embedded and Semi-Custom – Advanced Micro Devices is known for desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs as well as various development services.
Despite recent setbacks like Mizuho cutting its target price on AMD from $95.00 to $90.00 earlier this year, several trusted research firms have continued to bet big on the company by recommending it as either “buy” or “overweight.” For instance, Piper Sandler recently upped their target price on shares of Advanced Micro Devices from $90.00 to $110.00 while Craig Hallum lowered shares from a “buy” rating to a “hold” rating but maintained a $76 target price.
With one analyst giving AMD’s stock a sell rating while nine others assign it a hold rating alongside over twenty buy recommendations and an average consensus price target of around $97.80 per data from Bloomberg.com, investors seem to be optimistic about the future prospects of Advanced Micro Devices.
In conclusion, despite some mixed sentiments about its growth trajectory among some industry experts like Mizuho earlier this year, Advanced Micro Devices remains an influential player in the semiconductor world thanks in part to recent significant investments such as those by Mitsubishi UFJ Kokusai Asset Management Co., Ltd., which could help its stock continue to grow in the long term.
Institutional Investors Show Confidence in AMD’s Growth Potential through Significant Increase in Ownership
Advanced Micro Devices (AMD) has been making waves recently as several institutional investors and hedge funds have either added or reduced their stakes in the semiconductor manufacturer. My Personal CFO LLC raised its stake by a staggering 2,900% during the fourth quarter of 2020, now owning 180 shares worth $405,000 after buying an additional 174 shares. Samalin Investment Counsel lifted its stake by 112.5% in the first quarter of this year, SouthState Corp boosted its position by 234.5% in the third quarter of last year, TD Capital Management made a new purchase in the third quarter worth $25,000, and Duncker Streett & Co. Inc. acquired a new stake during the fourth quarter worth $28,000.
It is clear that there is confidence among these investors in AMD’s capabilities and growth potential as shown by these significant increases in ownership. The company is engaged in providing semiconductor businesses through its Computing & Graphics and Enterprise, Embedded and Semi-Custom segments which include desktop and notebook processors and chipsets, discrete and integrated graphics processing units as well as data center and professional GPUs.
NASDAQ:AMD was trading at $87.66 during mid-day trading on March 19th with a market cap of $141.08 billion, a price-to-earnings ratio of 99.36 and a beta of 1.95. Its quick ratio stands at 1.77 with a current ratio of 2.36 while having a debt-to-equity ratio of only 0.05.
In January of this year, AMD reported earnings per share (EPS) of $0.69 for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02 while generating revenue amounting to $5.60 billion during that same period.
The most recent news from AMD involves Executive Vice Presidents Rick Bergman and Mark D.Papermaster, who sold 3,000 and 30,000 shares respectively. The disclosure for these transactions can be accessed through the SEC’s website. Insiders have sold a total of 121,765 shares of company stock worth $10,734,100 over the last ninety days indicating some insider trading activity.
Despite this minor insider trading event, AMD is still considered as a strong performer by many analysts with forecasted earnings per share of 2.38 for this year. Overall, institutional investors seem to have their eyes on AMD with good reason; its growth potential has certainly caught their attention and sparked off significant increases in ownership.