AMD Shares Fall As Outlook Slashed, Insiders Take Part In Selling
Shares of Advanced Micro Devices Inc. (NYSE:AMD) dropped sharply on Tuesday after the computer chip manufacturer cut its sales outlook, which caused scores of brokerages to lower their price targets for the company's stock, Reuters reports.
What's more, company officials with AMD may be leading the way in selling shares, further indicating the company may be headed for stormy seas in the third quarter of 2012.
AMD is one of many chipmakers that are struggling with falling demand as the public continues to shift toward mobile devices for their computing needs. Slower economic growth in Europe and emerging markets has also stifled demand. However, AMD may have experienced the worst of it, analysts say.
"We suspect second quarter marks the worst quarter of the year [for AMD], exacerbated by the impact of Intel's Ivy Bridge launch," Citigroup analysts stated.
AMD's shares were trading 8 percent lower on Tuesday at $5.16, and the company was among one of the largest percentage losers of the day.
Recent insider transactions filed with the SEC show that in the last three months, company officials have sold $18,600, while another $49,600 worth of insider buys were reported.
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