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

Key Points

• Susquehanna lowered its GlobalFoundries price target to $110 from $125 but maintained a positive rating; the new target implies 172.68% upside from the stock’s then-current price.
• Analyst views are mixed: MarketBeat reported a consensus “Hold” rating and average target of $72.95, with 8 Buy, 11 Hold, and 1 Sell ratings.
• GlobalFoundries beat quarterly estimates, posting EPS of $0.53 versus $0.51 expected and revenue of $1.90 billion versus $1.89 billion; revenue rose 12.5% year over year.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its price objective dropped by stock analysts at Susquehanna from $125.00 to $110.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "positive" rating on the stock. Susquehanna's price objective points to a potential upside of 172.68% from the stock's current price.

GFS has been the topic of a number of other reports. Zacks Research cut shares of GlobalFoundries from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. TD Cowen restated a "buy" rating and set a $75.00 price target on shares of GlobalFoundries in a research report on Thursday, October 15th. Wedbush reaffirmed a "neutral" rating and issued a $72.00 price target on shares of GlobalFoundries in a research note on Thursday, October 15th. Jefferies Financial Group reissued a "hold" rating and set a $50.00 target price on shares of GlobalFoundries in a report on Wednesday. Finally, Cantor Fitzgerald restated an "overweight" rating 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 assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $72.95.

GlobalFoundries Trading Down 5.9%

Shares of NASDAQ:GFS opened at $40.34 on Thursday. 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 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 cap of $22.13 billion, a PE ratio of 30.20, a P/E/G 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.

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

Insider Buying and Selling at GlobalFoundries

In other news, insider Pradheepa Raman sold 6,760 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $51.12, for a total transaction of $345,571.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 12,590 shares of company stock worth $620,877.

Institutional Trading of GlobalFoundries

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bessemer Group Inc. raised its holdings in 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 buying an additional 2,813,548 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of GlobalFoundries by 2.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,340,385 shares of the company's stock worth $59,571,000 after buying an additional 31,590 shares during the period. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of GlobalFoundries in the third quarter worth about $40,775,000. Bank of America Corp DE increased 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 acquiring an additional 450,722 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund increased its position 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 acquiring an additional 545,900 shares in the last quarter.

Key Headlines Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: Q3 EPS was $0.53 versus the $0.51 consensus, while revenue of $1.90 billion narrowly topped estimates of $1.89 billion and rose 12.5% year over year. One report also highlighted a record quarterly margin. GlobalFoundries Q3 earnings and revenues beat estimates
• Negative Sentiment: Needham cut its price target from $80 to $55, a substantial reduction that could temper investor enthusiasm, although it maintained a Buy rating. Needham analyst recommendations

About GlobalFoundries

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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