Though a decent performer through much of 2024 and despite evading the negative attention Intel (NASDAQ: INTC) has been getting, Advanced Micro Devices (NASDAQ: AMD) came under significant pressure in recent months.
Indeed, the downturn has been so severe that AMD shares are, at press time, 1.67% in the red year-to-date (YTD). For comparison, at their 2024 highs, they were 52.53% in the green.
The pressure and the losses have, seemingly, not been lost on the semiconductor giant’s CEO, Lisa Su, as an early December filing with the Securities and Exchange Commission (SEC) shows she offloaded $10.9 million worth of AMD stock on the fourth day of the month.
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Lisa Su’s monster AMD stock insider sales
Specifically, Lisa Su sold her company’s shares in three batches on December 4. The first saw the offloading of 28,218 at an average price of $141.89, the second 30,299 at an average price of $142.76, and the third of 17,979 at an average price of $143.69.
Following the insider trades, the CEO owns nearly 3.57 million AMD shares worth $486 million at the stock’s press time price of $136.33.
Still, it is worth pointing out that CEO Su has maintained a relatively stable schedule of sales throughout the year and has made a total of eight such filings since January 1.
The June 7 trade was the largest in terms of the number of shares offloaded, with a total volume of 142,730. Lisa Su raised the most money on March 13, when she made $24.4 million by selling 125,000 shares.
While the insider trades are unlikely the result of Advanced Micro Devices’ issues, they may nonetheless exacerbate the decline.
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Will AMD stock continue its crash?
The sales schedule has arguably proven unfortunate in recent weeks. For example, AMD’s CEO reported one such maneuver on November 6, a week after the stock entered a strong downtrend following the latest quarterly earnings report.
Similarly, the December 4 trades became public mere days after Bank of America (NYSE: BAC) provided a stark downgrade for the shares of Nvidia’s (NASDAQ: NVDA) biggest competitor.
Specifically, BofA warned of additional downside ahead on fears of market share loss while reducing its rating of Advanced Micro Devices from ‘buy’ to ‘neutral’ and lowering the 12-month price target from $180 to $155.
The downgrade had a swift impact: AMD stock dropped 1.96% on Friday, December 6, and 1.51% during Monday’s pre-market.
Finally, it is noteworthy that much like the post-earnings collapse may have been disproportionate given the relatively strong figures, the latest downturn could also be an overreaction given that, even after the downgrade, Bank of America forecasts a 13.7% climb for Advanced Micro Devices shares.
