GlobalFoundries (NASDAQ:GFS) Stock Gets Price Target Cut from Needham & Company LLC

GlobalFoundries (NASDAQ:GFS) had its price target reduced by Needham & Company LLC from $80.00 to $55.00 in a research note issued to investors on Wednesday, MarketBeat Ratings reports. They currently have a buy rating on the stock.

Other equities research analysts have also recently issued research reports about the stock. BNP Paribas Exane cut shares of GlobalFoundries from an “outperform” rating to a “neutral” rating and set a $51.00 target price on the stock. in a research note on Monday, October 5th. Robert W. Baird set a $140.00 price target on shares of GlobalFoundries in a research report on Thursday, August 6th. Morgan Stanley reduced their price objective on shares of GlobalFoundries from $60.00 to $56.00 and set an “equal weight” rating for the company in a research note on Monday, November 2nd. Jefferies Financial Group set a $60.00 price objective on shares of GlobalFoundries in a research report on Wednesday, August 5th. Finally, TD Cowen restated a “buy” rating and set a $75.00 price objective on shares of GlobalFoundries in a research report on Thursday, October 15th. Eight research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, GlobalFoundries has an average rating of “Hold” and an average target price of $67.79.

GlobalFoundries Stock Performance

NASDAQ:GFS traded up $2.26 during mid-day trading on Wednesday, hitting $38.62. 5,023,286 shares of the company traded hands, compared to its average volume of 5,924,218. The stock’s fifty day moving average price is $45.84 and its 200-day moving average price is $54.88. GlobalFoundries has a one year low of $32.02 and a one year high of $92.55. The company has a quick ratio of 1.74, a current ratio of 2.48 and a debt-to-equity ratio of 0.13. The firm has a market cap of $21.19 billion, a price-to-earnings ratio of 110.34, a price-to-earnings-growth ratio of 1.33 and a beta of 1.78.

GlobalFoundries (NASDAQ:GFS) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.51 by $0.02. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%. The firm had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter last year, the company earned $0.44 earnings per share. The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. Research analysts anticipate that GlobalFoundries will post 1.50 earnings per share for the current fiscal year.

GlobalFoundries Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 14th. Stockholders of record on Tuesday, December 22nd will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, December 22nd. GlobalFoundries’s payout ratio is 137.14%.

Insider Buying and Selling at GlobalFoundries

In related news, Director Ganesh Moorthy bought 2,500 shares of the business’s stock in a transaction that occurred on Thursday, November 5th. The stock was bought at an average cost of $37.48 per share, with a total value of $93,700.00. Following the completion of the purchase, the director owned 5,500 shares of the company’s stock, valued at approximately $206,140. The trade was a 83.33% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Pradheepa Raman sold 6,760 shares of the firm’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $51.12, for a total transaction of $345,571.20. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,925 shares of company stock worth $633,881 in the last three months.

Institutional Trading of GlobalFoundries

Hedge funds have recently bought and sold shares of the stock. Sei Investments Co. increased its holdings in shares of GlobalFoundries by 239.0% in the first quarter. Sei Investments Co. now owns 48,246 shares of the company’s stock worth $2,146,000 after purchasing an additional 34,014 shares during the last quarter. Bank of America Corp DE lifted its position in shares of GlobalFoundries by 106.1% in 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 stake in GlobalFoundries by 97.4% during the first quarter. First Trust Advisors LP now owns 264,837 shares of the company’s stock valued at $11,780,000 after buying an additional 130,643 shares during the last quarter. Public Employees Retirement System of Ohio bought a new position in GlobalFoundries during the second quarter valued at approximately $3,067,000. Finally, Janus Henderson Group PLC bought a new position in GlobalFoundries during the first quarter valued at approximately $1,108,000.

Key GlobalFoundries News

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: A Seeking Alpha article highlights improving margins and commitments that could support future growth. Another report points to a record third-quarter margin, suggesting operational progress. Margins Improve As GlobalFoundries Secures Commitments For Future Growth GlobalFoundries stock: Company posts record Q3 margin
• Positive Sentiment: TD Cowen cut its target to $60 from $75 but kept a Buy rating, while Susquehanna lowered its target to $110 from $125 and retained a positive rating. TD Cowen price-target update Susquehanna price-target update
• Neutral Sentiment: UBS, JPMorgan, and Citi lowered their targets to $43, $50, and $46, respectively, and maintained Neutral ratings. Their targets still imply potential upside from the cited $38.62 share price, but the cuts signal reduced expectations. UBS rating update JPMorgan rating update Citi rating update
• Negative Sentiment: Wedbush made a particularly steep reduction, cutting its target to $45 from $72 and citing a lower valuation multiple. The broader wave of target cuts—including reductions from Citi, JPMorgan, UBS, and TD Cowen—could reinforce concerns about GFS’s near-term valuation and outlook. Wedbush cuts GlobalFoundries price target

GlobalFoundries Company Profile

GlobalFoundries is a semiconductor foundry that manufactures integrated circuits for customers that design their own chips. Its services include wafer fabrication, process technology development, packaging support and design enablement, helping customers bring semiconductor products to market without operating their own fabrication facilities.

The company focuses on specialty technologies used in areas such as automotive electronics, communications, industrial systems, smart devices and data centers.