GlobalFoundries (NASDAQ:GFS) Stock Price Target Cut by Citigroup

Key Points

• Citigroup cut its GlobalFoundries price target from $58 to $46 and maintained a neutral rating; the new target implies 26.63% upside from the stock’s then-current price.
• Analyst views remain mixed: MarketBeat reported an average “Hold” rating and a $69.47 average target, while several firms had recently lowered their price targets.
• GlobalFoundries beat quarterly estimates, reporting EPS of $0.53 versus $0.51 expected and revenue of $1.90 billion, up 12.5% year over year.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its price objective reduced by Citigroup from $58.00 to $46.00 in a research report issued on Thursday, Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's target price would indicate a potential upside of 26.63% from the company's current price.

GFS has been the subject of a number of other research reports. Morgan Stanley lowered their target price 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. Deutsche Bank Aktiengesellschaft set a $75.00 price target on GlobalFoundries in a research report on Monday, August 10th. Robert W. Baird set a $140.00 target price on GlobalFoundries in a research note on Thursday, August 6th. Needham & Company LLC reduced their target price on shares of GlobalFoundries from $80.00 to $55.00 and set a "buy" rating for the company in a research report on Wednesday. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of GlobalFoundries in a report on Thursday, October 15th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, GlobalFoundries presently has an average rating of "Hold" and an average target price of $69.47.

GlobalFoundries Price Performance

Shares of NASDAQ:GFS traded down $4.01 during midday trading on Thursday, hitting $36.33. The stock had a trading volume of 13,666,966 shares, compared to its average volume of 4,477,821. The company's 50-day moving average price is $46.18 and its 200-day moving average price is $54.93. The company has a market capitalization of $19.93 billion, a P/E ratio of 28.38, a price-to-earnings-growth ratio of 1.36 and a beta of 1.78. GlobalFoundries has a fifty-two week low of $32.02 and a fifty-two week 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.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.53 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.02. The company had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.89 billion. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%. GlobalFoundries's revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.44 EPS. As a group, equities research analysts predict that GlobalFoundries will post 1.48 EPS for the current fiscal year.

Insider Buying and Selling at GlobalFoundries

In related news, insider Pradheepa Raman sold 2,145 shares of GlobalFoundries stock in a transaction on Monday, September 28th. The shares were sold at an average price of $48.83, for a total value of $104,740.35. Following the transaction, the insider owned 2,145 shares in the company, valued at $104,740.35. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 have sold 12,590 shares of company stock valued at $620,877.

Institutional Trading of GlobalFoundries

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GFS. Bessemer Group Inc. lifted its stake in shares of GlobalFoundries by 8,275,141.2% in the 1st quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company's stock worth $125,147,000 after purchasing an additional 2,813,548 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of GlobalFoundries during the 3rd quarter valued at about $40,775,000. Healthcare of Ontario Pension Plan Trust Fund increased its stake in shares of GlobalFoundries by 322.8% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 715,000 shares of the company's stock worth $31,803,000 after purchasing an additional 545,900 shares in the last quarter. Atreides Management LP bought a new stake in GlobalFoundries during the first quarter valued at about $21,110,000. Finally, Bank of America Corp DE lifted its holdings in GlobalFoundries by 106.1% in the 1st quarter. Bank of America Corp DE now owns 875,361 shares of the company's stock worth $38,936,000 after purchasing an additional 450,722 shares in the last quarter.

GlobalFoundries News Roundup

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries reported Q3 earnings of $0.53 per share, above the $0.51 consensus, and revenue of $1.90 billion, slightly ahead of estimates and up 12.5% year over year. GlobalFoundries Q3 results
• Positive Sentiment: Recent coverage highlighted improved margins and commitments supporting future growth, which could bolster the company’s outlook if sustained. Margins improve and future commitments
• Negative Sentiment: Several firms sharply reduced their price targets: Wedbush cut its target to $45 and moved to “neutral,” Needham lowered its target to $55 while retaining “buy,” and Susquehanna cut its target to $110 while keeping a positive rating. The broad downward revisions may have undermined investor confidence, even though two firms maintained favorable ratings. Wedbush rating

GlobalFoundries Company Profile

GlobalFoundries Inc NASDAQ: GFS is a semiconductor manufacturer that operates as a contract foundry, producing chips designed by other companies. The company provides wafer fabrication and related services for customers in the automotive, communications infrastructure, aerospace and defense, industrial, and consumer electronics markets.

GlobalFoundries specializes in differentiated semiconductor technologies rather than competing primarily in the most advanced logic-processing nodes. Its offerings include radio-frequency and silicon-on-insulator technologies, embedded memory, power-management solutions, high-voltage processes, silicon photonics, and other specialty platforms used in connectivity, sensing, automotive electronics, and edge-computing applications.

The company was established in 2009 through the separation of Advanced Micro Devices' manufacturing operations, with investment from the Abu Dhabi-based Advanced Technology Investment Company.

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