GlobalFoundries (NASDAQ:GFS) Shares Gap Down Following Analyst Downgrade

GlobalFoundries Inc. (NASDAQ:GFS) gapped down before the market opened on Wednesday after TD Cowen lowered their price target on the stock from $85.00 to $75.00. The stock had previously closed at $52.02, but opened at $48.14. TD Cowen currently has a buy rating on the stock. GlobalFoundries shares last traded at $51.83, with a volume of 1,655,304 shares.

A number of other research analysts have also recently commented on GFS. Needham & Company LLC upped their target price on shares of GlobalFoundries from $55.00 to $80.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Cantor Fitzgerald upgraded shares of GlobalFoundries from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $50.00 to $80.00 in a report on Monday, May 4th. Susquehanna increased their price objective on shares of GlobalFoundries to $125.00 and gave the stock a “positive” rating in a research report on Monday, May 11th. Citigroup boosted their target price on GlobalFoundries from $49.00 to $70.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Finally, JPMorgan Chase & Co. upped their price target on GlobalFoundries from $45.00 to $70.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Eight analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $75.12.

Insider Transactions at GlobalFoundries

In other GlobalFoundries news, Director Glenda Dorchak sold 4,000 shares of the stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $58.22, for a total transaction of $232,880.00. Following the sale, the director directly owned 14,867 shares in the company, valued at $865,556.74. This represents a 21.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 500 shares of the company’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $70.90, for a total value of $35,450.00. Following the sale, the insider directly owned 795 shares in the company, valued at $56,365.50. This represents a 38.61% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 18,950 shares of company stock valued at $1,375,905.

Hedge Funds Weigh In On GlobalFoundries

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Bessemer Group Inc. increased its stake in GlobalFoundries by 8,275,141.2% in the first quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company’s stock valued at $125,147,000 after purchasing an additional 2,813,548 shares during the last quarter. HRT Financial LP purchased a new stake in shares of GlobalFoundries during the 4th quarter worth approximately $62,996,000. AQR Capital Management LLC boosted its holdings in shares of GlobalFoundries by 168.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,607,792 shares of the company’s stock valued at $93,463,000 after buying an additional 1,635,338 shares in the last quarter. Marshall Wace LLP grew its position in shares of GlobalFoundries by 126.0% in the 4th quarter. Marshall Wace LLP now owns 2,382,003 shares of the company’s stock valued at $83,180,000 after buying an additional 1,328,129 shares during the last quarter. Finally, UBS Group AG grew its position in shares of GlobalFoundries by 136.7% in the 4th quarter. UBS Group AG now owns 1,809,232 shares of the company’s stock valued at $63,178,000 after buying an additional 1,044,755 shares during the last quarter.

GlobalFoundries Price Performance

The stock’s 50-day moving average is $69.63 and its 200 day moving average is $58.85. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.87 and a current ratio of 2.59. The stock has a market capitalization of $28.16 billion, a PE ratio of 39.97, a P/E/G ratio of 1.75 and a beta of 1.80.

GlobalFoundries (NASDAQ:GFS) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.03. The company had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.77 billion. GlobalFoundries had a net margin of 10.36% and a return on equity of 6.70%. GlobalFoundries’s revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.42 earnings per share. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. As a group, equities analysts expect that GlobalFoundries Inc. will post 1.38 earnings per share for the current year.

GlobalFoundries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 23rd will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Wednesday, September 23rd. GlobalFoundries’s dividend payout ratio (DPR) is currently 37.50%.

About GlobalFoundries

GlobalFoundries, Inc (NASDAQ: GFS) is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.