Advanced Micro Devices, Inc. (NASDAQ:AMD) has reported a significant stock transaction by its Chair, President, and CEO, Lisa Su. According to the latest SEC filing, Su sold a total of 125,000 shares of AMD common stock, netting over $19 million. The shares were sold at prices ranging from $153.23 to $154.85, reflecting the robust performance of the stock in the market.
The transaction was conducted on May 8, 2024, and was part of a prearranged trading plan that Su had adopted on November 20, 2023. This plan is in accordance with Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information.
The filing indicates that the sales were executed in multiple trades. The weighted average sale price per share was reported within the price range of $153.23 and $154.85. Following these transactions, Su's direct holdings in AMD common stock have decreased, yet she still retains a significant number of shares, indicating a continued vested interest in the company's success.
Investors often monitor insider sales as they may provide insights into the executive's view of the company's current valuation and future prospects. However, it is also common for executives to sell shares for personal financial management, estate planning, or diversification purposes.
AMD, headquartered in Santa Clara, California, is a leading semiconductor company known for its processors and graphics technology used in personal computers, data centers, and gaming consoles. Despite the sale, the company continues to innovate and compete in the high-demand technology market.
For investors keeping a close eye on AMD's stock movements, this recent development is one of many factors to consider when assessing the company's investment profile. As always, it's important to look at a broad range of indicators when making investment decisions.
InvestingPro Insights
Advanced Micro Devices, Inc. (AMD) has recently been in the spotlight due to its CEO's stock transaction, and investors are keenly observing the company's financial health and market performance. Here are some insights based on real-time data and InvestingPro Tips:
InvestingPro Data indicates that AMD has a market capitalization of around $245.55 billion, with a high Price to Earnings (P/E) ratio of 220.03, suggesting that the stock is trading at a premium relative to its earnings. Despite a slight revenue decline of -1.16% over the last twelve months as of Q1 2024, the company has maintained a strong Gross Profit Margin of 50.56%, which is indicative of its ability to manage costs effectively.
Furthermore, an InvestingPro Tip highlights that AMD is a prominent player in the Semiconductors & Semiconductor Equipment industry and has shown a high return over the last year, with a 57.07% price total return. This aligns with the recent sale by CEO Lisa Su, which could be seen as a move to capitalize on the stock's strong performance.
Investors considering AMD should also note that the company has been profitable over the last twelve months and analysts predict it will remain profitable this year. However, with 16 analysts having revised their earnings expectations downwards for the upcoming period, it's essential to keep an eye on future earnings reports and market trends.
For those looking to delve deeper into AMD's financials and stock analysis, InvestingPro offers additional insights and metrics. By using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 18 InvestingPro Tips for AMD, which can further inform investment strategies.
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