GlobalFoundries (NASDAQ:GFS) Shares Climb 6% – What’s Next?

Shares of GlobalFoundries Inc. (NASDAQ:GFS) shot up 6% during mid-day trading on Thursday. The company traded as high as $49.93 and last traded at $50.9760. 2,139,826 shares were traded during trading, a decline of 49% from the average session volume of 4,216,139 shares. The stock had previously closed at $48.07.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on GFS shares. Arete Research set a $95.00 price target on GlobalFoundries in a research report on Wednesday, June 10th. UBS Group reduced their price objective on GlobalFoundries from $61.00 to $55.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. BNP Paribas Exane lowered GlobalFoundries from an “outperform” rating to a “neutral” rating and set a $51.00 price objective for the company. in a research report on Monday. TD Cowen cut their target price on shares of GlobalFoundries from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating on shares of GlobalFoundries in a research note on Tuesday, September 8th. Eight investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $74.63.

GlobalFoundries Stock Up 4.5%

The stock has a market capitalization of $27.55 billion, a price-to-earnings ratio of 39.22, a P/E/G ratio of 1.54 and a beta of 1.77. The firm’s fifty day simple moving average is $47.88 and its 200 day simple moving average is $59.57. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.74 and a current ratio of 2.48.

GlobalFoundries (NASDAQ:GFS) last announced its earnings results on Wednesday, August 5th. The company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. The firm had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.77 billion. GlobalFoundries had a net margin of 10.36% and a return on equity of 6.69%. The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.42 EPS. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. On average, sell-side analysts forecast that GlobalFoundries Inc. will post 1.48 earnings per share for the current year.

GlobalFoundries Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 23rd will be issued a $0.12 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.0%. GlobalFoundries’s dividend payout ratio (DPR) is 37.50%.

Insiders Place Their Bets

In related news, Director Glenda Dorchak sold 4,000 shares of the stock in a transaction 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 completion of the transaction, the director owned 14,867 shares in the company, valued at approximately $865,556.74. This represents a 21.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pradheepa Raman sold 2,145 shares of the business’s stock in a transaction dated Monday, September 28th. The stock was sold at an average price of $48.83, for a total transaction of $104,740.35. Following the sale, the insider directly owned 2,145 shares in the company, valued at $104,740.35. This trade represents a 50.00% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 16,255 shares of company stock worth $842,668.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Aster Capital Management DIFC Ltd boosted its holdings in shares of GlobalFoundries by 844.7% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 62,593 shares of the company’s stock worth $2,186,000 after buying an additional 55,967 shares during the period. Sei Investments Co. increased its position in GlobalFoundries by 239.0% during the 1st quarter. Sei Investments Co. now owns 48,246 shares of the company’s stock worth $2,146,000 after buying an additional 34,014 shares during the period. Bank of America Corp DE lifted its holdings in shares of GlobalFoundries by 106.1% during the first quarter. Bank of America Corp DE now owns 875,361 shares of the company’s stock worth $38,936,000 after buying an additional 450,722 shares in the last quarter. First Trust Advisors LP boosted its position in shares of GlobalFoundries by 97.4% in the first quarter. First Trust Advisors LP now owns 264,837 shares of the company’s stock valued at $11,780,000 after acquiring an additional 130,643 shares during the period. Finally, Janus Henderson Group PLC acquired a new position in shares of GlobalFoundries in the first quarter valued at about $1,108,000.

About GlobalFoundries

GlobalFoundries Inc is a semiconductor contract manufacturer that produces chips for customers without owning their own fabrication facilities. The company operates as a pure-play foundry, manufacturing semiconductors based on customers’ designs and supporting them through process development, wafer fabrication, packaging, and related services.

Its technology portfolio focuses on specialized semiconductor platforms rather than the most advanced leading-edge logic nodes. Products and services include radio-frequency technologies, analog and mixed-signal solutions, power management, embedded memory, silicon photonics, and automotive and industrial semiconductor platforms.