Advanced Micro Devices Stock Brushes Off Bearish Brokerage Note

A bullish bias on Wall Street could be boosting AMD shares

Apr 9, 2018 at 10:32 AM
facebook twitter linkedin

BMO cut its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) by $3 to $12, following a rough stretch for chip stocks. Nevertheless, this new AMD price target stands at a premium to last Friday's close at $9.61, and in early trading, the security is 1.6% higher at $9.69, thanks to broad-market tailwinds.

Since being rejected by the $12.90 region in late February -- a region that was unsuccessfully tested during an early March rally attempt -- AMD stock has shed nearly 25%. What's more, the shares tagged an annual low of $9.04 last Wednesday, April 4.

Amid these recent technical troubles, short sellers have ramped up their exposure, which has likely created even stiffer headwinds for the stock. Short interest rose 9.1% in the March 15 reporting period to 174.08 million shares. This accounts for 21.09% of the stock's available float and is not far from the Dec. 1 multi-year peak of 177.02 million shares.

However, there are a number of analysts who have seemingly refused to budge on their upbeat ratings. Of the 21 brokerages covering AMD stock, 10 still maintain a "strong buy" rating, while the average 12-month price target of $14.24 represents expected upside of 45.6% to the equity's current perch. Advanced Micro Devices shares could be at risk of more bearish brokerage notes, should they resume their longer-term downtrend.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners