An executive at chipmaker Advanced Micro Devices (AMD) has bought company stock for the first time in 12 years, according to regulatory filings.
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Phil Guido, AMD’s chief commercial officer, paid $500,000 on Feb. 7 to purchase 4,645 shares of the company’s stock at an average price of $107.56 each. He now owns 33,522 AMD shares in a personal account, according documents filed with the U.S. Securities and Exchange Commission (SEC).
Guido’s purchase is the first stock of AMD bought on the open market by a company insider since November 2012, when CEO Lisa Su paid $98,400 for 48,000 AMD shares at an average price of $2.05 each. Su was a senior vice-president of the company at the time.
Stock Slump
Guido bought the AMD shares with the price down near a 52-week low of $106.50. AMD stock has declined 37% in the past 12 months amid growing concerns over the company’s growth trajectory and its ability to compete in the artificial intelligence (AI) chip space against market leader Nvidia (NVDA).
AMD’s most recent forward guidance underwhelmed investors and analysts. As for Guido, he joined AMD in June 2023 and is a former executive at International Business Machines (IBM). As a member of AMD’s senior leadership team, he will be tasked with helping the company reignite growth and its share price.
Is AMD Stock a Buy?
The stock of Advanced Micro Devices has a consensus Moderate Buy rating among 36 Wall Street analysts. That rating is based on 24 Buy, 11 Hold, and one Sell recommendations assigned in the last three months. The average AMD price target of $148.03 implies 30% upside from current levels.
