GlobalFoundries (NASDAQ:GFS) Shares Gap Down – What’s Next?

GlobalFoundries Inc. (NASDAQ:GFS) gapped down before the market opened on Friday . The stock had previously closed at $86.12, but opened at $81.69. GlobalFoundries shares last traded at $79.9450, with a volume of 692,717 shares traded.

Wall Street Analyst Weigh In

A number of analysts recently commented on GFS shares. Needham & Company LLC upped their price objective 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. Evercore restated an “outperform” rating and set a $85.00 target price on shares of GlobalFoundries in a report on Tuesday, May 19th. Susquehanna lifted their price target on shares of GlobalFoundries to $125.00 and gave the company a “positive” rating in a research note on Monday, May 11th. Wedbush reiterated a “neutral” rating and issued a $50.00 price target on shares of GlobalFoundries in a report on Monday, May 4th. Finally, Morgan Stanley increased their price objective on shares of GlobalFoundries from $58.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Nine research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $73.29.

GlobalFoundries Stock Down 7.0%

The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $43.93 billion, a price-to-earnings ratio of 57.55, a P/E/G ratio of 2.96 and a beta of 1.77. The stock’s fifty day moving average price is $74.19 and its 200-day moving average price is $53.91.

GlobalFoundries (NASDAQ:GFS) last announced its earnings results on Tuesday, May 5th. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05. The business had revenue of $1.63 billion during the quarter, compared to analysts’ expectations of $1.63 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The firm’s revenue was up 3.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.34 earnings per share. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. On average, sell-side analysts predict that GlobalFoundries Inc. will post 1.38 earnings per share for the current fiscal year.

GlobalFoundries Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Wednesday, June 24th will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Wednesday, June 24th. This represents a $0.48 annualized dividend and a yield of 0.6%. GlobalFoundries’s dividend payout ratio is 34.53%.

Insiders Place Their Bets

In other news, Director Glenda Dorchak sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $58.46, for a total transaction of $233,840.00. Following the sale, the director owned 18,867 shares in the company, valued at $1,102,964.82. This represents a 17.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 500 shares of the business’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $74.82, for a total transaction of $37,410.00. Following the transaction, 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,675 shares of company stock valued at $1,387,882 in the last 90 days.

Institutional Trading of GlobalFoundries

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

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.