Advanced Micro Devices, Inc. (NASDAQ:AMD) is now making an impressive resurgence. For years the stock looked like it was about to disappear under the weight of larger rivals Intel and Nvidia. In early 2016 stock prices fell to less than $2 per share; fast forward a year and stock prices are topping $13 while TechRadar called AMD’s recently-released Ryzen 7 processor “AMD’s most disruptive move since the Athlon 64 days”.
Now investors are wondering: can the stock soar even higher or, given the stock’s volatile history and current ten-year highs, is there a danger of a price pullback? We turned to our score system to find out what the experts are saying.
TipRanks score system combines six different elements of the market into one simple score. How is this score calculated? We analyze expert sentiment, news and crowd wisdom and other data points on AMD usually only available to hedge funds. The result: investors can make a clear, data-based, decision on whether AMD is a buy or a sell stock.
Wall Street Analysts
With a score of 6.7, the consensus rating from all analysts is Moderate Buy. Interestingly, the 12-month analyst price target of $11.38 represents a rather shocking -15.64% downside from the current share price- while the price target from only the best-performing analysts represents a more moderate -10% downside. Five-star Jefferies analyst Matt Ramsay reiterated his buy rating on AMD’s and continues to gain confidence on the stock despite its volatility. He is bullish on “AMD re-emerging as a competitive second source to Intel (with leadership in several sub-segments) with an on-track Zen roadmap across relevant x86 CPU markets including enterprise/gaming desktops, media-focused notebooks and certain server market segments.”
TipRanks’ unique algorithms extract relevant stock opinions from thousands of financial blogs. Bloggers are a serious investing resource and recommendations extracted from blog posts drive impressive success rates and average returns. Here an impressive 79% of bloggers are bullish on AMD (giving an 8.1 score), although there are top bloggers who are bearish on the stock because they are worried about AMD’s ability to deliver profits in the near future and the competition posed by larger rival Intel.
With a score of 3.1, the insider confidence signal is very low. Indeed, in the last three months corporate insiders sold shares in AMD worth a whopping $614 million. Only 13 days ago four-star AMD owner Mubadala Development made an informative sale of $613 million of AMD stock. No doubt Mubadala Developments was keen to take advatange of high prices in the immediate aftermath of the Ryzen 7 launch. In fact, TipRanks reveals that in the last year there have been no informative purchases and eight informative sales of AMD shares by insiders.
Hedge Fund Managers
Analyzing 13F forms from the SEC reveals the latest activity of prominent hedge fund managers. In the case of AMD, a moderately positive trend is apparent. In the last three months hedge funds increased AMD holdings by 701,200 shares, hence the score of 6.6. Big-name fund manager Ken Heebner for example drastically upped Capital Growth’s AMD shares by 438% to $61 million while Andrew Law raised Caxton’s AMD holding by 170% to $4.6 million.
From TipRanks’ new news page we can immediately see that the news on AMD is far more bullish than the sector average which has a bullish/ bearish ratio of 79:21. The positive articles pulled up by TipRanks in the past week cover, for example, the fact that cheaper Ryzen 5 desktop processors will launch worldwide on April 11, 2017 at a price of under $300 “offering disruptive price-to-performance for gamers and creators” according to AMD.
Crowd insights are a fundamental feature of TipRanks’ award-winning Smart Portfolio platform. Tracking the 120,000 active TipRanks portfolios shows how AMD is a very popular stock for TipRanks users. We discovered that the the best-performing TipRanks portfolios i.e. the portfolios that generate the highest return, hold AMD as their sixth biggest stock in the tech sector. In fact, with a beta of 1.49, AMD is one of the three most volatile stocks held by best-performing and average TipRanks portfolios. A beta of greater than 1 indicates that the stock is theoretically more volatile than the market.
4,999 stocks to go
AMD is just one of over 5,000 stocks tracked by TipRanks. You can perform the same market analysis on any of these stocks as we have done just now on AMD. With a few clicks you can find out what top Wall Street analysts, hedge fund managers or corporate insiders are saying about your stocks. Are other TipRanks users bullish or bearish on a stock, and how does this compare to only the best-performing portfolios? Find out now on TipRanks.