Advanced Micro Devices Inc. (NASDAQ:AMD) shares traded lower over the last trading session, losing -0.28% on 06/07/21. The shares fell to a low of $80.38 before closing at $81.35. Intraday shares traded counted 28.95 million, which was 35.02% higher than its 30-day average trading volume of 44.55M. AMD’s previous close was $81.58 while the outstanding shares total 1.21B. The firm has a beta of 2.04, a 12-month trailing P/E ratio of 34.53, and a growth ratio of 1.22. The stock’s Relative Strength Index (RSI) is 57.62, with weekly volatility at 2.11% and ATR at 2.19. The AMD stock’s 52-week price range has touched low of $48.42 and a $99.23 high.
Investors have identified the Semiconductors company Advanced Micro Devices Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $97.27 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Advanced Micro Devices Inc. (AMD) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 7.2 billion total, with 2.86 billion as their total liabilities.
AMD were able to record 832.0 million as free cash flow during the 07/28/2021 quarter of the year, this saw their quarterly net cash flow reduce by 168.0 million. In cash movements, the company had a total of 898.0 million as operating cash flow.
Potential earnings growth for Advanced Micro Devices Inc. (AMD)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/28/2021 quarter of the year, Advanced Micro Devices Inc. recorded a total of 3.44 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 48.16% coming in sequential stages and their sales for the 07/28/2021 quarter increasing by 5.83%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.86 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.59 billion. This allows shareholders to hold on to 1.21B with the recently reported earning now reading 0.46 cents per share. This is a figure that compared to analyst’s prediction for their 07/28/2021 (0.47 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.45 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AMD sounds very interesting.
Is the stock of AMD attractive?
In related news, Chief Accounting Officer, SMITH DARLA M sold 1,055 shares of the company’s stock in a transaction that recorded on Jun 01. The sale was performed at an average price of 81.00, for a total value of 85,455. As the sale deal closes, the EVP, CFO & Treasurer, KUMAR DEVINDER now sold 63,044 shares of the company’s stock, valued at 5,131,965. Also, Chief Technology Officer & EVP, Papermaster Mark D sold 55,000 shares of the company’s stock in a deal that was recorded on May 14. The shares were price at an average price of 75.00 per share, with a total market value of 4,125,000. Following this completion of acquisition, the Chief Accounting Officer, SMITH DARLA M now holds 1,055 shares of the company’s stock, valued at 77,426. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
19 out of 38 analysts covering the stock have rated it a Buy, while 12 have maintained a Hold recommendation on Advanced Micro Devices Inc.. 3 analysts has assigned a Sell rating on the AMD stock. The 12-month mean consensus price target for the company’s shares has been set at $104.34.