AMD Short Interest Rises To 71 Million Shares & CEO Sells Close To $36 Million Of Stock

The short interest for chip designer Avant-garde Micro Devices, Inc (AMD) has started to creep up over again afterwards consistently dropping during the second half of this year. AMD's share toll has been consistently rising over the by year, as the company delivers consecutive quarterly and annual revenue growth. The increase in short interest, reported by the NASDAQ exchange, comes even as AMD'south attempt to merge with field programmable gate array (FPGA) company Xilinx appears to be well on track to clear regulatory approval, and the value represents roughly vi percent of AMD's overall outstanding shares.

AMD Brusk Interest Peaks In Third Quarter 2021 Before Dropping In November

The latest data from NASDAQ, which lists downward the short interest shares for AMD'due south stock, shows that 71.6 million shares were sold curt as of the end of November. While this figure marks for a 20% drop over the 89 one thousand thousand brusque interest shares by the finish of July, it yet reveals that over the past couple of months, AMD'southward curt interest has been rising nearly consistently.

Since July end, when the short involvement was at its highest for 2021, the figure dropped significantly by mid August, subsequently a reduction of 19 million shares, bringing it downward to 70 million. It continued this downward trajectory until October end, which saw NASDAQ report 62 million brusque interest for the chip designer.

Even so, the shares then started to rising in November, and take grown by 16% since then for the ~72 one thousand thousand value equally of November end. This growth can partially be attributed to AMD'due south share price, which has dropped by 8% since the start calendar week of Nov, but continues on an upward trajectory for 2021 after having gained $46 or near 50% since the start of this year when the shares closed at $92.thirty on January 1st. Additionally, the short interest peaked at 75 meg for mid-Nov, before dropping

AMD'southward share cost has grown by a remarkable 50% over the course of 2021, as the company delivers strong quarterly growth and new products.

Insider activity for AMD'southward shares reveals that direction has also been decorated selling shares throughout Nov. The first insider sale for the visitor in November came when its vice president and chief accounting officer Ms. Darla Smith sold close to i,400 shares at $154, netting her a cool $215,000. She was followed by AMD's chief Dr. Lisa Su, who exercised her options for 125,000 shares and sold them at $145 during the 2d week of Nov, in a transaction worth $18 one thousand thousand.

Dr. Su was followed by several AMD executives, including its chief financial officer Mr. Devinder Kumar, selling roughly 232,000 shares at prices ranging between $148 and $163. Dr. Su then sold 125,000 more than shares at the end of Dec's first calendar week, later on exercising her options for the same number of shares for roughly $17.seven million.

While an increment in the brusque involvement for a company is mostly a negative sign indicating that more investors believe the share price will drib, in AMD's example it can likewise signify the resolution of its Xilinx merger proposal. Xilinx investors can hedge their bets for the company by taking short positions in AMD in the off upshot that the deal is not finalized and AMD's shares autumn during the open marketplace.

While both Wedbush and Susquehanna raised AMD'south toll target in November, to $165 and $175 respectively, Erste Group downgraded the company to Concord from Buy last week, outlining that the stock is valued significantly college than its peers, and should simply modestly grow in the near time to come. AMD'south next quarterly earnings should striking the press in January, and the company is heading into it on the back of a tape primal processing unit of measurement (CPU) market share of 24.6% for Q3 2021, its highest since 2006. Improved production designs and partnership with the Taiwan Semiconductor Manufacturing Company (TSMC) take enabled the bit designer to deliver stiff earnings results.