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

GlobalFoundries Inc. (NASDAQ:GFS)’s share price 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 trading hands.

Several other research firms also recently commented on GFS. Morgan Stanley reiterated a “negative” rating and issued a $60.00 price objective on shares of GlobalFoundries in a research note on Thursday. Zacks Research lowered GlobalFoundries from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $70.00 price target on shares of GlobalFoundries in a research report on Tuesday, May 5th. Robert W. Baird set a $140.00 price objective on GlobalFoundries in a report on Thursday. Finally, Cantor Fitzgerald upgraded GlobalFoundries from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $50.00 to $80.00 in a research note on Monday, May 4th. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $75.12.

Insider Activity

In related news, insider Michael James Hogan sold 2,800 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $82.88, for a total transaction of $232,064.00. Following the sale, the insider owned 9,645 shares of the company’s stock, valued at approximately $799,377.60. This represents a 22.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 500 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $74.82, for a total transaction of $37,410.00. Following the completion of the sale, the insider owned 15,494 shares in the company, valued at $1,159,261.08. This represents a 3.13% decrease in their ownership of the stock. 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 ninety days, insiders sold 18,950 shares of company stock worth $1,375,905.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. increased its position in shares of GlobalFoundries by 8.6% during the first quarter. PNC Financial Services Group Inc. now owns 1,954 shares of the company’s stock valued at $87,000 after buying an additional 154 shares during the period. Parallel Advisors LLC grew its position in shares of GlobalFoundries by 39.8% in the 1st quarter. Parallel Advisors LLC now owns 832 shares of the company’s stock worth $37,000 after buying an additional 237 shares during the period. Vident Advisory LLC increased its stake in shares of GlobalFoundries by 5.0% in the 4th quarter. Vident Advisory LLC now owns 6,160 shares of the company’s stock worth $215,000 after acquiring an additional 293 shares in the last quarter. Federation des caisses Desjardins du Quebec increased its stake in shares of GlobalFoundries by 9.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 3,575 shares of the company’s stock worth $125,000 after acquiring an additional 305 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its position in GlobalFoundries by 3.4% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 9,744 shares of the company’s stock valued at $372,000 after acquiring an additional 324 shares during the period.

GlobalFoundries Price Performance

The firm has a market cap of $28.02 billion, a P/E ratio of 40.30, a price-to-earnings-growth ratio of 1.75 and a beta of 1.80. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.59 and a quick ratio of 1.87. The firm’s 50 day moving average is $69.63 and its 200 day moving average is $58.85.

GlobalFoundries (NASDAQ:GFS) last released its earnings results 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. GlobalFoundries had a net margin of 10.36% and a return on equity of 6.70%. The firm had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.77 billion. During the same period last year, the business earned $0.42 earnings per share. The business’s revenue was up 5.8% on a year-over-year basis. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. As a group, analysts anticipate that GlobalFoundries Inc. will post 1.38 earnings per share for the current year.

GlobalFoundries Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 23rd will be paid a dividend of $0.12 per share. The ex-dividend date is Wednesday, September 23rd. This represents a $0.48 dividend on an annualized basis and a yield of 0.9%. GlobalFoundries’s payout ratio is presently 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.