One of the biggest shareholders of Advanced Micro Devices Inc. (AMD) said that it sold common shares of the semiconductor company, while planning to convert warrants into equity shares.
On Tuesday, Abu Dhabi’s sovereign wealth fund Mubadala Investment Co. said that it sold 34.9 million common equity shares in AMD. The state-owned fund also mentioned plans to convert 75 million warrants, which would provide $448.5 million to AMD (according to Mubadala Investment). The fund will retain a 6.9% stake in the company.
According to Mubadala spokesman Brian Lott’s statements to Abu Dhabi English news service The National, the fund’s latest transaction with AMD securities is part of its plan to encash mature holdings to generate “attractive commercial returns".
"We have had a long-standing relationship with AMD over the past decade and remain among the company's top shareholders”, Lott told The National. Mubadala Investment first invested in AMD in 2007.
It is expected that a price bounce should occur soon.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMD advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
AMD moved below its 50-day moving average on April 02, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMD crossed bearishly below the 50-day moving average on April 01, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMD entered a downward trend on April 22, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.297) is normal, around the industry mean (6.370). P/E Ratio (280.434) is within average values for comparable stocks, (109.575). Projected Growth (PEG Ratio) (0.603) is also within normal values, averaging (2.498). AMD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (10.650) is also within normal values, averaging (36.504).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of integrated circuits for semiconductors
Industry Semiconductors