JPMorgan Chase & Co. Issues Pessimistic Forecast for GlobalFoundries (NASDAQ:GFS) Stock Price

Key Points

• JPMorgan cut its GlobalFoundries price target from $57 to $50 and maintained a neutral rating; the new target implies 37.65% upside from the prior close.
• GlobalFoundries shares fell 10% to $36.33 on Thursday. Analyst views are mixed, with an overall MarketBeat consensus rating of “Hold” and an average price target of $68.42.
• The company beat quarterly estimates, reporting EPS of $0.53 versus $0.51 expected and revenue of $1.90 billion versus $1.89 billion; revenue increased 12.5% year over year.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its target price dropped by investment analysts at JPMorgan Chase & Co. from $57.00 to $50.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target indicates a potential upside of 37.65% from the stock's previous close.

Several other brokerages have also issued reports on GFS. Zacks Research lowered shares of GlobalFoundries from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. Robert W. Baird set a $140.00 price target on shares of GlobalFoundries in a research note on Thursday, August 6th. Morgan Stanley cut their price objective on shares of GlobalFoundries from $60.00 to $56.00 and set an "equal weight" rating on the stock in a report on Monday. Needham & Company LLC cut their price objective on shares of GlobalFoundries from $80.00 to $55.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $50.00 price objective on shares of GlobalFoundries in a research note on Wednesday. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, GlobalFoundries presently has an average rating of "Hold" and a consensus price target of $68.42.

GlobalFoundries Trading Down 10.0%

Shares of GFS traded down $4.01 during trading hours on Thursday, hitting $36.33. 13,673,232 shares of the stock traded hands, compared to its average volume of 4,477,997. The company has a current ratio of 2.48, a quick ratio of 1.74 and a debt-to-equity ratio of 0.13. GlobalFoundries has a 1-year low of $32.02 and a 1-year high of $92.55. The firm has a market capitalization of $19.93 billion, a PE ratio of 28.38, a price-to-earnings-growth ratio of 1.36 and a beta of 1.78. The business has a fifty day moving average of $46.18 and a 200-day moving average of $54.93.

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

Insider Activity

In other news, insider Pradheepa Raman sold 6,760 shares of the business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $51.12, for a total value of $345,571.20. The sale 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. Over the last three months, insiders have sold 12,590 shares of company stock valued at $620,877.

Institutional Trading of GlobalFoundries

Hedge funds have recently added to or reduced their stakes in the business. Machina Capital S.A.S. boosted its stake in GlobalFoundries by 36.4% in the 3rd quarter. Machina Capital S.A.S. now owns 27,755 shares of the company's stock worth $1,330,000 after purchasing an additional 7,408 shares during the period. AlphaCore Capital LLC bought a new position in GlobalFoundries during the 3rd quarter worth about $1,497,000. Leuthold Group LLC raised its stake in shares of GlobalFoundries by 63.9% in the 3rd quarter. Leuthold Group LLC now owns 13,286 shares of the company's stock valued at $637,000 after purchasing an additional 5,181 shares during the period. Argonautica Private Wealth Management Inc. raised its stake in shares of GlobalFoundries by 15.6% in the 3rd quarter. Argonautica Private Wealth Management Inc. now owns 12,350 shares of the company's stock valued at $592,000 after purchasing an additional 1,671 shares during the period. Finally, Kestra Advisory Services LLC raised its stake in shares of GlobalFoundries by 104.3% in the 3rd quarter. Kestra Advisory Services LLC now owns 7,105 shares of the company's stock valued at $340,000 after purchasing an additional 3,628 shares during the period.

Key GlobalFoundries News

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 versus $1.89 billion expected. Revenue grew 12.5% year over year, and reports highlighted improved margins and commitments that could support future growth. GlobalFoundries Q3 financial results Margins improve and future commitments
• Neutral Sentiment: Analyst views remain mixed: Susquehanna lowered its target from $125 to $110 while retaining a positive rating; TD Cowen cut its target from $75 to $60 but kept a buy rating; Needham reduced its target from $80 to $55 and also maintained a buy rating. Read More. · Read More. · Read More.
• Negative Sentiment: Wedbush cut its price target sharply, from $72 to $45, and downgraded its stance to neutral. The cluster of target reductions may have overshadowed the quarterly beat and raised concerns about near-term upside expectations. Read More.

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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