The security earned a target price increase from UBS to USD 95
The shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) are up 3.3% to $ 85.48 this afternoon after the semiconductor name hit a price target hike by UBS to $ 95 from $ 92. The Bull Notes precede the security’s first quarter earnings report, which will be released after the close of trading on Tuesday, April 27th. Below we’ll take a look at how the stock has fared over the past few charts, and some of the stocks examine previous post-earnings moves.
The past few months have been difficult for Advanced Micro Devices stock. Stocks traded lower after hitting an all-time high of $ 99.23 on Jan. 11. However, it appears AMD gained a foothold at $ 78 while today’s pop pushed it past overhead printing at $ 84. Compared to the previous year, equity increased by around 52%.
A look at the history of stocks after gaining the last two years reveals a generally negative reaction. In the last eight reports, six of those next-day sessions were lower, including a 10.1% decline in July 2019. The stock has posted an average post-profit gain of 5.7% over the past eight quarters, regardless of direction. This time the options market expects a much larger move of 10.1%.
Analysts were already optimistic about today’s share capital. Eighteen of the 27 companies rated “Buy” or better, while the remaining nine said “Hold”. Additionally, the 12-month consensus price target of $ 102.50 is a whopping 19.9% premium over current levels.
In the meantime, shorts are starting to hit the exits. Short rates fell 2.5% over the most recent reporting period, although the 81.56 million short stocks sold still account for 7.6% of the stock’s available free float.
The option pits don’t reflect this optimism, with puts being popular. This corresponds to the 50-day put / call volume ratio of Advanced Micro Device on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which are in the 87th percentile of the last 12 months lie. In other words, long puts are picked up faster than usual.