Advanced Micro Devices, Inc. (AMD) Stock Tumbles As 50-Day Moving Average is Breached


A couple of days ago, we reported that shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) were feeling the effects of rumored Apple (NASDAQ:AAPL) cuts in production. Today these effects may still be contributing to the fact that the stock is trading down over 5% yet again.

While this Apple rumor has caused a lot of movement for several big and small named stocks, Advanced Micro Devices, Inc. (NASDAQ:AMD) certainly is getting hit hard. Today, however, the stock breached its 50-day moving average which may have caused further declines as traders who rely on technical analysis would see this as a move to the downside.

Undoubtedly Apple isn’t going anywhere, and the idea of them abandoning Advanced Micro Devices, Inc. (NASDAQ:AMD)’s chips is almost just absurd, so for those with a more optimistic view on things, today may just be the perfect time to purchase beaten down shares of the chip manufacturer.

The stock is down 5.49% or $0.12 today, hitting $2.15 per share. About 24.64M shares traded hands or 87.95% up from the average. AMD has declined 2.15% since June 4, 2015 and is downtrending. It has outperformed the S&P500 by 3.71%.

From a total of 3 analysts covering Advanced Micro (NASDAQ:AMD) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $2.05 while the lowest target price is $2.0. The mean of all analyst targets is $2.03 which is -5.58% below today’s ($2.15) stock price. Advanced Micro was the topic of 3 analyst reports since August 13, 2015 according to the firm StockzIntelligence Inc. Vetr upgraded shares on September 22 to a “Strong-Buy” rating. Topeka Capital Markets initiated AMD stock in a recent report from August 13 with a “Hold” rating.

The institutional sentiment decreased to 0.63 in Q2 2015. It’s down 0.42, from 1.05 in 2015Q2. The ratio turned negative, as 38 funds sold all their Advanced Micro Devices, Inc. shares they owned while 73 reduced their positions. 23 funds bought stakes while 47 increased their total positions. Institutions now own 293.84 million shares which is 8.23% less than the previous share count of 320.18 million in 2015Q2.

Shanda Payment Holdings Ltd. holds 9.11% of its total portfolio in Advanced Micro Devices, Inc., equating to 6.08 million shares. Mcglinn Capital Management Inc owns 91,600 shares representing 0.48% of their total US portfolio. Moreover, Two Sigma Securities Llc has 0.47% of their total portfolio invested in the company, equating to 174,607 shares. The New York-based Stone Ridge Asset Management Llc has a total of 0.32% of their portfolio invested in the stock. Chicago Equity Partners Llc, a Illinois-based fund reported 5.61 million shares owned.

Advanced Micro Devices, Inc. is a global semiconductor firm with facilities across the world. The company has a market cap of $1.77 billion. The Firm offers x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit , chipsets, discrete graphics processing units (GPUs) and professional graphics, and server and embedded processors, dense servers, semi-custom System-on-Chip (SoC) products and technology for game consoles. It currently has negative earnings. The Firm operates in two divisions: the Computing and Graphics segment, which includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics, and the Enterprise, Embedded and Semi-Custom segment, which includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties.