Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) recorded 2.68% gain during trading session on January 11th, 2019. The script traded as low as $19.19 and last traded at $20.27. 84.87 million shares changed exchanged hands during trading, an increase of 20.65% from the 30-day average session volume of 106.95M shares. The firm had previously closed at $19.74. The company has $973.28M outstanding shares, price-to-earnings-growth ratio of 3.02and a beta of 3.32. The company has a RSI of 53.95, ATR of 1.44 and a volatility of 6.88% this week. AMD has a 52 week low price of $9.04 and a 52 week high price of $34.14.
Investors have identified the tech 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 19.73B, 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. For AMD, the company has in raw cash 1.05 billion on their books with 1.04 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 3.31 billion total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
AMD were able to record 158 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 140 million. In cash movements, the company had a total of 36 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 third quarter of the year, Advanced Micro Devices, Inc. recorded a total of 1.65 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.04% coming in sequential stages and their sales for the third quarter reducing by -0.06%.
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 992 million trying to sell their products during the last quarter, with the result yielding a gross income of 661 million. This allows shareholders to hold on to 973.28M with the revenue now reading 100 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.05 cents a share).
Is the stock of AMD attractive?
Having a look at the company’s valuation, the company is expected to record 0.53 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.
In related news, Chief Technology Officer & SVP Papermaster Mark D sold 31,291 shares of the company’s stock in a transaction that recorded on December 27th, 2019. The sale was performed at an average price of 17.40, for a total value of 544,463. As the sale deal closes, the SVP, CFO & Treasurer Papermaster Mark D now sold 35,027 shares of the company’s stock, valued at 609,470. Also, SVP, GC & Corporate Secretary WOLIN HARRY A sold 18,070 shares of the company’s stock in a deal that was recorded on December 27th, 2019. The shares were sold at an average price of 17.40 per share, with a total market value of 1,348,807. Following this completion of acquisition, the President & CEO now holds 83,396 shares of the company’s stock, valued at 1,451,090. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.70%.
6 out of 31 analysts covering the stock have rated it a Buy, while 16 have maintained a Hold recommendation on Advanced Micro Devices, Inc. stock. 1 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 $23.95.