AMD Evaluation

AMD Evaluation - student project

I decided to evaluate Advanced Micro Devices

Ticker Symbol: AMD

On the day that I looked up this info (June 2021) AMD was priced at $81.29 per share.

Positive Elements:

It has trended upward in recent years (the last 5 years) although it seems to currently be moving sideways recovering from a recent pullback.

It's EPS Estimates imply that the earnings will increase in the near future. Over the last year EPS grew over 450%. It's Profit Margins are consistent with or slightly higher than competitors in the same industry. Analysts are currently rating it as a buy with an average target price of $100.61 per share.

They also seem to be decreasing their debt, but only recently (in the past 2-3). In 2020, 37% of the operating income was going toward debt.  The current TTM is 27% of operating income going toward debt. It's still not great, but it's seems to be improving.

 

Negatives:

AMD does not yield a dividend, which I think makes the stock more volatile during pullbacks. Also, AMD has only been consistently improving in earnings and revenue for the last 4 years. It will be interesting to see if they can keep up the growth.

AMD hasn't been consistent over the long-term, but only in recent years.

 

I would not buy AMD and hold it for the long-term. I would consider possibly trading this stock for the short term. For long-term, I think that some of it's competitors that offer a dividend and have more proven long-term performance may be a better buy and hold.

 

I couldn't find the percentage of insider investors.  Let me know the best place to get this info. Thanks!

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