Advanced Micro Devices, Inc. (AMD) Traders Should Start Listening to Analysts

Advanced Micro Devices, Inc. (AMD) shares saw a recent bid of $12.38 and 150.62M shares have exchanged hands in the recent trading session, yielding a 10.63% gain over the past week. The stock price increased 2.91% or $-0.35 versus $12.03 at the end of the prior session. This change led market cap to move at $11.73B, putting the price -20.39% below the 52-week high and 187.91% above the 52-week low. The company’s stock has a normal trading capacity of 65.74M shares while the relative volume is 2.29.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $12.25 while $20.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $7.75 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $4.00, which would be decrease of about -68% of its current value. The mean target of $11.50 should be compared with the price when the stock was languishing around $4.30 a share. And it remains to be seen which target price AMD can achieve without sacrificing much as the company is holding a 174.50% gain for the past twelve months.

By historical standards, Advanced Micro Devices, Inc. remains a cheap stock. For now, Advanced Micro Devices, Inc. is the toast of Wall Street as its ABR stands at 2.70 with 5 out of 29 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Advanced Micro Devices, Inc. has a 15.56% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Advanced Micro Devices, Inc. has far performed well this year, with the share price up 9.17% since January. Over the past 2 quarters, the stock is up 42.63%, compared with a fall of nearly -6.35% for 3 months and about 23.31% for the past 30 days.

Last time, the company shocked Wall Street by reporting EPS of $-0.04, smashing the consensus of $-0.04 per share. Revenue for the quarter also killed consensus, coming in at $984M, compared to the consensus of 984.38M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $0.00. The company is expected to report EPS as high as $0.01 and as low as $-0.01 per share. Similarly, full-year EPS forecasts have ranged between $0.03 and $0.14. The mean EPS estimate is $0.08. On the other side, sales forecasts for the current quarter are $1.15B. The stock is expected to report revenue as high as $1.2B and as low as $1.15B per share. Similarly, full-year sales forecasts have ranged between $4.68B and $5.23B. The mean revenue estimate is $4.82B.

Over the last 5 years, Advanced Micro Devices, Inc. has averaged a -23.70% YoY EPS growth rate and a -8.20% revenue growth rate. Analysts are expecting EPS growth rates to be at 29.40% this quarter and EPS estimate for next year reflect 300.00% growth rate.

Sell-side analysts also have something to say about this company. Loop Capital had a markedly different take on 17/05/2017, proposing that Advanced Micro Devices, Inc. is now considered Hold versus prior Buy rating. Stifel analysts stated on 02/05/2017 that they maintained their Hold rating. Macquarie had a markedly different take on 02/05/2017, proposing that Advanced Micro Devices, Inc. is now considered Underperform versus prior Neutral rating. Goldman analysts stated on 06/04/2017 that they launched coverage on this stock with Sell rating.

Advanced Micro Devices, Inc. (AMD) Traders Should Start Listening to Analysts was last modified: June 8th, 2017 by Caleb Gerald
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