Advanced Micro Devices Inc. (AMD) Stock Moves Down and Here’s Why

Advanced Micro Devices Inc. (NASDAQ: AMD) shares rose on Monday Nov 21 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.

Shares of Advanced Micro Devices Inc. (NASDAQ: AMD) were downgraded by analysts at Vetr Inc. in a note to their investors today. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the company recently, and the company has earned a consensus one-year price target of $6.91, less than the opening price of $8.87. Advanced Micro Devices Inc. stock has a 52-week high of $9.22. Considerable and crucial digressions in the company’s actions, future direction or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the original recommendation.

Advanced Micro Devices Inc. (NASDAQ: AMD) shares last traded at $9.13, which represents an increase of $0.42 or 4.82% over the previous closing price. Opening at $8.87, they fluctuated from $8.87 and $9.22 throughout the day.

Advanced Micro Devices Inc. (NASDAQ: AMD) currently has a market cap of 8.46B.

Advanced Micro Devices Inc. (NASDAQ: AMD) Average Daily Trading Volume

18,806,051 shares traded hands yesterday, below the norm, out of a total float 778,032,000. Investors often use upticks in trading volume to pinpoint substantial volume accumulation or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

However, a single day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Advanced Micro Devices Inc. (NASDAQ: AMD) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

Trades for Advanced Micro Devices Inc. (NASDAQ: AMD) have ranged from $1.75 – 9.22, and the stock now has a 50-day MA of $6.93 and 200-day MA of $5.90. Today’s last price is 0.98%% lower than the 52 week high of $9.22.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for the past 3 years.

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