Why Advanced Micro Devices, Inc. (AMD) Shares Are Crashing -2.99 Percent Today

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the worst performers on the stock market today. At current price of $32.78, the shares have already lost -1.01 points (-2.99% lower) from its previous close of $33.79. Should you buy or avoid them? The stock sets an active trading volume day with a reported 51603594 contracts so far this session. AMD shares had a relatively better volume day versus average trading capacity of 67.69 million shares, but with a 1.07 billion float and a 8.16% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for AMD stock indicates that the average analyst price target is $30.43 per share. This means the stock has a potential decrease of -7.17% from where the AMD share price has been trading recently which is between $33.36 and $34.03. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $7.

The shorts are climbing into Advanced Micro Devices, Inc. (AMD) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a rise in short interest in AMD shares. While short interest still represents only 10.38% of AMD’s float, the number of shares shorted have risen by 2593452. The number of shares shorted advanced to 113593452 shares, up from 111000000 shares during the preceding fortnight. With average daily trading volumes at 65416222 shares, days to cover increased to about 1.20831 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “10 Stocks of S&P 500 ETF Up More Than 60% This Year” and dated July 11, 2019.

During the recent trading session for Advanced Micro Devices, Inc. (NASDAQ:AMD), the company witnessed their stock rise $1.6 over a week and surge $0.61 from the price 20 days ago. When compared to their established 52-week high of $34.3, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/10/19. The recent low of $15.72 stood for a -4.43% since 07/25/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 3.1 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Advanced Micro Devices, Inc., the two-week RSI stands at 62.23. This figure suggests that AMD stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AMD readings is similarly very revealing as it has a stochastic reading of 90.61% at this stage. This figure means that AMD share price today is being oversold.

Technical chart claims that Advanced Micro Devices, Inc. (AMD) would settle between $34.09/share to $34.4/share level. However, if the stock price goes below the $33.42 mark, then the market for Advanced Micro Devices, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $33.06 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.33. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Wedbush, assumed coverage of AMD assigning Outperform rating, according to their opinion released on June 27. BofA/Merrill analysts again handed out a Buy recommendation to Advanced Micro Devices, Inc. (NASDAQ:AMD) stock but they lifted target price for the shares in a flash note issued to investors on June 10. The target price has been raised from $35 to $40. Analysts at Morgan Stanley released an upgrade from Underweight to Equal-Weight for the stock, in a research note that dated back to June 06.

AMD equity has an average rating of 2.32, with the figure leaning towards a bullish end. 34 analysts who tracked the company were contacted by Reuters. Amongst them, 15 rated the stock as a hold while the remaining 19 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 17 analysts rated Advanced Micro Devices, Inc. (NASDAQ:AMD) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, AMD stock price is currently trading at 33.1X forward 12-month Consensus EPS estimates, and its P/S ratio is 5.99 while for the average stock in the same group, the multiple is 8.3. Advanced Micro Devices, Inc. current P/E ratio of 131.13 means it is trading at a premium against its industry’s 8.48. In the past 5 years, this ratio for the stock has been fluctuating between 54.17 and 54.17.

Advanced Micro Devices, Inc. (AMD)’s current-quarter revenues are projected to climb by nearly -13.36% to hit $1.52 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 6.44% from $6.48 billion to a noteworthy $6.89 billion. At the other end of the current quarter income statement, Advanced Micro Devices, Inc. is expected to see its adjusted earnings surge by roughly -42.86% to hit $0.08 per share. For the fiscal year, AMD’s earnings are projected to climb by roughly 45.65% to hit $0.67 per share.