On June 5, 2023, Executive Vice President and Chief Sales Officer Paul Grasby sold 15,000 shares of Advanced Micro Devices Inc (AMD, Financial), a leading semiconductor company that develops computer processors and related technologies for business and consumer markets. The company's main product lines include microprocessors, motherboard chipsets, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded system applications.
Over the past year, Paul Grasby has sold a total of 99,272 shares and purchased 0 shares. This recent sale comes amidst a trend of insider selling for the company. In the past year, there have been 0 insider buys and 20 insider sells for Advanced Micro Devices Inc.
As shown in the insider trend image above, the number of insider sells has been relatively consistent over the past year, with no insider buys recorded. This could indicate that insiders believe the stock is fairly valued or overvalued at its current price.
On the day of Paul Grasby's recent sale, shares of Advanced Micro Devices Inc were trading for $118.77 apiece, giving the stock a market cap of $189.74 billion. The price-earnings ratio is 512.28, which is higher than the industry median of 24.07 and higher than the company's historical median price-earnings ratio.
According to the GF Value image above, Advanced Micro Devices Inc has a price-to-GF-Value ratio of 0.93, with a price of $118.77 and a GuruFocus Value of $128.30. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent sale of 15,000 shares by EVP & CSO Paul Grasby may be seen as a continuation of the insider selling trend for Advanced Micro Devices Inc. With a price-earnings ratio higher than the industry median and a price-to-GF-Value ratio indicating the stock is fairly valued, it is possible that insiders believe the stock's current price accurately reflects its value. Investors should keep an eye on insider transactions and other financial indicators to make informed decisions about the stock's future performance.
