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AMD Selling Below CEO's Recent Buy Price

This article is more than 10 years old.

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on May 17, Advanced Micro Devices, Inc.'s CEO, Rory P. Read, invested $49,600.00 into 8,000 shares of AMD, for a cost per share of $6.20. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Tuesday, bargain hunters could buy shares of Advanced Micro Devices, Inc. (NYSE: AMD) and achieve a cost basis 1.6% cheaper than Read, with shares changing hands as low as $6.10 per share. Advanced Micro Devices, Inc. shares are currently trading down about 3.2% on the day. The chart below shows the one year performance of AMD shares, versus its 200 day moving average:

Looking at the chart above, AMD's low point in its 52 week range is $4.31 per share, with $8.71 as the 52 week high point — that compares with a last trade of $6.14. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/17/2012 Rory P. Read President and CEO 8,000 $6.20 $49,600.00

According to the ETF Finder at ETF Channel, AMD makes up 3.33% of the iShares PHLX SOX Semiconductor Sector Index Fund ETF (NASD: SOXX)which is trading lower by about 0.9% on the day Tuesday.

See what other ETFs contain AMD »

See what other stocks are held by SOXX »


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