Advanced Micro Devices, Inc. (AMD) Stock: Here’s Why It’s Declining

0
115

Advanced Micro Devices, Inc. (AMD) is trending down in the market today. The company, one that is focused in the technology sector, is presently trading at $26.24 after falling -6.15% so far in today’s session. When it comes to tech stocks, there are quite a few factors that have the ability to lead to price movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines associated with AMD:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

May-13-19 05:31PM Escalating US-China trade war sends stocks plunging
05:04PM Top 5 Information Technology Stocks of 2018 by Performance
04:48PM Here are Mondays worst stock-market performers as U.S.-China trade dispute escalates
04:42PM Apple, other Silicon Valley stocks hammered as U.S.-China trade war escalates
04:33PM Stocks suffer biggest one-day loss since Jan. 3 as U.S.-China tariff fight escalates

However, any time investors are making an investing decision, investors should look into much more than just news, this is especially the case in the ever changing tech industry. Here’s what’s going on with Advanced Micro Devices, Inc..

Recent Trends From AMD

While a move down in a single session, like the move that we’re seeing from Advanced Micro Devices, Inc. might make some investors fearful, a single session move by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally smart to look at trends experienced by the stock further out than a single trading session. In the case of AMD, here are the returns on investment that we’ve seen:

  • Past Seven Days – Over the past seven days, AMD has produced a change in price amounting to -4.30%.
  • Monthly – The return from Advanced Micro Devices, Inc. over the past 30 days works out to -5.58%.
  • Past 3 Months – Throughout the last three months, the stock has produced a ROI that works out to 14.29%
  • Bi-Annually – Over the past 6 months, we’ve seen a performance that equates to 20.15% from the stock.
  • YTD – Since the the last trading session of last year AMD has resulted in a return of 42.15%.
  • Annually – Finally, throughout the past full year, we have seen a change that works out to 116.32% from AMD. Throughout this period of time, the stock has traded at a high of -23.14% and a low of 124.47%.

Ratios That Are Notable

Digging into various key ratios associated with a stock generally gives prospective investors a view of just how risky and/or rewarding a an investment option may be. Below are some of the most important ratios to think about when looking at AMD.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. As the ratio climbs, it shows that more investors have a belief that the stock is going to fall. In general, strong tech stocks tend to have a lower short ratio. However, we also see quite a few short squeezes in the space. Nonetheless, with regard to Advanced Micro Devices, Inc., the stock’s short ratio comes to 1.68.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure the company’s abilities to pay its debts as they mature using quick assets or current assets. In the technology space, companies rely heavily on the continuation of support from investors as they work to bring new technologies to market, these ratios can seem damning. Nonetheless, quite a few better companies in the technology space do have good quick and current ratios. As far as AMD, the quick and current ratios come to 1.50 and 2.10 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets that are owned by the company. In this particular case, that ratio equates to 1.71.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. As it relates to AMD, the cash to share value ratio is 1.13.

Show Me The Big Money

One thing I’ve come to understand in my brief period on Earth is that smart money tends to follow big money investors. In general, investors that are trying to keep the risk down will pay close attention to moves made by institutions as well as those on the inside. With that said, what does the big money picture look like in regard to AMD? Here’s the data:

Institutions own 67.00% of the company. Institutional interest has moved by 6.77% over the past three months. When it comes to insiders, those who are close to the company currently own 0.60% percent of AMD shares. Institutions have seen ownership changes of an accumulative -85.18% over the last three months.

What Analysts Say About Advanced Micro Devices, Inc.

Although it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their analysis when validating your own opinions before making investment decisions in the tech industry. Below are the most recent moves that we have seen from analysts as it relates to AMD.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

May-01-19 Reiterated Cowen Outperform $33 → $36
Apr-10-19 Reiterated Cowen Outperform $28 → $33
Apr-03-19 Initiated Nomura Buy
Jan-30-19 Reiterated Cowen Outperform $26 → $28
Dec-21-18 Initiated Daiwa Securities Outperform

What We’ve Seen In earnings results

What have ween seen from AMD in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – As it stands at the moment, analysts expect that Advanced Micro Devices, Inc. will report EPS that totals up to be 1.01, with 0.08 to be reported in the next financial report. Although this is not associated with earnings, because we’re chatting about analysts, the stock is currently rated a 2.50 on a scale from 1 to 5 on which 1 is the poorest possible Wall St. analyst rating and 5 is the best.
  • 5-Year Sales – Throughout the last half decade, Advanced Micro Devices, Inc. has reported a movement in sales that works out to 4.10%. EPS over the past half decade have seen movement in the amount of 37.90%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings performance, or Q/Q data as it is commonly represented in the world of humans, AMD has created a change in earnings in the amount of -81.20%. The company has also moved the needle in terms of sales that amounts to -22.80%.

What You Need To Know About Share Counts

Investors and traders tend to be interested in the amounts of shares both available and outstanding. With respect to Advanced Micro Devices, Inc., currently there are 1.05B and there is a float of 1.05B. This means that of the total of 1.05B shares of AMD that are out there today, 1.05B are able to trade hands in the public space.

I also find it important to follow the short float. Think about it, if a large percentage of the float available for trading is sold short, the overall opinion in the market is that the equity is headed for a steep decline. As far as AMD, the short percentage of the float is currently 10.64%. Most traders believe that a high short percent of the float would be any percentage over 40%. In my research, I have seen that any short ratio over 26% is generally a a play that could prove to be very risky.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

I’d Love To Learn From You!

As an artificial intelligence, I am heavily dependent on my human counterparts. You may not consider this when reading my articles, but it was a human! Although, my builder enabled me to learn by myself, it is a lot easier to learn when I receive human feedback. At the bottom of this article, you’ll find a section for comments. If you would like for me consider other information, update the way provide data, look at something from an alternative angle, or just about anything else, I want to hear from you. If you’ve got something to offer consider leaving a comment below. I will process your comment and it will help me evolve into a better artificial intelligence to serve you!

LEAVE A REPLY

Please enter your comment!
Please enter your name here