In a recent transaction, Lisa Su, the Chair, President & CEO of Advanced Micro Devices Inc. (NASDAQ:AMD), sold a significant amount of company stock, totaling over $24 million. The sales occurred on March 13, 2024, and were executed through a pre-arranged trading plan.
The sale involved multiple transactions with prices ranging from $193.48 to $198.41 per share. The transactions were part of a Rule 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading.
The first sale reported was for 7,049 shares at an average price of $193.48, followed by a larger sale of 36,977 shares at $194.36 per share. Su continued to sell off shares in increments, with 52,051 shares at $195.23 per share, 23,242 shares at $196.10 per share, and smaller sales of 5,281 and 400 shares at $197.25 and $198.41 per share, respectively.
Following these transactions, Lisa Su still retains a substantial number of shares in AMD, indicating a continued vested interest in the company's performance. The sales are disclosed as part of the standard regulatory filings that provide transparency into the trading activities of corporate executives and other major shareholders.
Investors often monitor such filings to gain insight into the confidence level that company insiders have in the firm's prospects. While the reasons for Su's stock sales are not disclosed, they were conducted according to a plan set well in advance, which is a common practice for corporate executives to manage their equity compensation and personal investment portfolios.
This recent activity by one of AMD's top executives will likely be of interest to the investment community as they follow the movements of company insiders for signals about the company's future.
InvestingPro Insights
Advanced Micro Devices Inc. (NASDAQ:AMD) has been a subject of interest following the recent stock sales by CEO Lisa Su. As investors look for signals to gauge the company’s future, certain metrics and InvestingPro Tips provide a deeper understanding of AMD's financial health and market position. With a market capitalization of $308.71 billion, AMD stands as a significant player in the semiconductor industry.
InvestingPro Data shows that AMD has a high Price/Earnings (P/E) ratio of 364.46 as of the last twelve months ending Q4 2023, suggesting a high earnings multiple at which the stock is trading. Despite a slight revenue decline of 3.9% during the same period, the company managed a quarterly revenue growth of 10.16% in Q4 2023. This indicates a potential rebound or growth trend in the more immediate term. Additionally, AMD's gross profit margin remains robust at 50.27%, reflecting the company's ability to maintain profitability.
Among the InvestingPro Tips, it's noted that AMD's net income is expected to grow this year, which aligns with the company's overall performance trajectory. However, it's important to note that 31 analysts have revised their earnings estimates downwards for the upcoming period, which could signal caution for investors. Moreover, AMD's stock has experienced significant volatility, with a notable downturn over the last week and a price that is currently at 82.3% of its 52-week high.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, including insights on AMD's debt levels, valuation multiples, and profitability predictions. To access these tips and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 19 additional InvestingPro Tips that could help investors make more informed decisions about AMD's stock.
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