Lisa Su Sells AMD Stock

In a surprising move, Lisa Su, the CEO of Advanced Micro Devices Inc., recently sold more than $20 million worth of AMD shares. While this action raised eyebrows, the company reassured that it was business as usual.

Su offloaded 125,000 AMD shares last Wednesday at prices ranging between $162.06 and $164.84, according to a recent filing with the Securities and Exchange Committee. This transaction was executed through a Rule 10b5-1 trading plan, which allows insiders to sell shares under specific predetermined conditions.

Although Su has previously sold AMD shares, those transactions mainly involved options set to expire within two years. What made this recent sale stand out was that it was the first time since 2019 that the AMD CEO sold non-stock-option shares, as highlighted by Ben Silverman, VP of Research at VerityData.

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Analysis of AMD Stock Trades

An AMD spokesperson has defended recent stock trades made by company insider Su as part of her 10b5 plan. The distinction between the exercise and sale of stock options versus non-stock-option shares is being emphasized by the spokesperson.

Insider Trading Signals

VerityData analyzes insider activity for valuation insights. Silverman points out that even seemingly small changes in insider selling behavior can be significant indicators of company performance.

Su holds 47,600 stock options with a strike price of $12.83, set to expire in August. Silverman notes that Su's decision to first sell non-option shares rather than cash in expiring options is noteworthy.

Valuation Insights

According to Silverman, selling stock-option shares is not typically a reliable valuation indicator. However, Su's shift to selling non-option shares could be seen as an opportunistic move.

Silverman emphasizes that since the options do not expire, Su's decision to hold onto them instead of selling on a set schedule may suggest a strategic approach to managing her portfolio.

Su's Stake in AMD

Su remains a significant shareholder in AMD, holding approximately 4 million shares through direct and indirect holdings. As of Monday's closing price of $176.01, her position is valued at around $700 million.