Morgan Stanley Issues Pessimistic Forecast for GlobalFoundries (NASDAQ:GFS) Stock Price

Key Points

• Morgan Stanley lowered GlobalFoundries’ price target from $60 to $56 while maintaining an “equal weight” rating, implying roughly 33% upside from the stock’s prior close.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average target price of $75.58; eight analysts rate the stock a Buy, 11 a Hold, and one a Sell.
• GlobalFoundries shares traded near $42.12, well below their 52-week high of $92.55. The company recently beat quarterly earnings and revenue estimates, reporting $0.46 EPS and $1.79 billion in revenue.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its price objective reduced by equities researchers at Morgan Stanley from $60.00 to $56.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 32.95% from the company's previous close.

GFS has been the subject of several other research reports. Wedbush reissued a "neutral" rating and issued a $72.00 target price on shares of GlobalFoundries in a research report on Thursday, October 15th. Jefferies Financial Group set a $60.00 price objective on GlobalFoundries in a research report on Wednesday, August 5th. UBS Group dropped their price target on shares of GlobalFoundries from $61.00 to $55.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. TD Cowen reaffirmed a "buy" rating and set a $75.00 target price on shares of GlobalFoundries in a research note on Thursday, October 15th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of GlobalFoundries in a research report on Wednesday, August 26th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, GlobalFoundries has a consensus rating of "Hold" and a consensus target price of $75.58.

GlobalFoundries Price Performance

Shares of GlobalFoundries stock traded up $0.22 during trading on Monday, hitting $42.12. 1,366,908 shares of the company were exchanged, compared to its average volume of 4,388,998. 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 stock has a market capitalization of $23.11 billion, a price-to-earnings ratio of 32.96, a P/E/G ratio of 1.33 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 firm has a 50 day moving average price of $46.48 and a 200 day moving average price of $54.92.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.43 by $0.03. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%. The company had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.77 billion. During the same period in the previous year, the firm posted $0.42 EPS. GlobalFoundries's revenue was up 5.8% on a year-over-year basis. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. On average, equities analysts expect that GlobalFoundries will post 1.48 earnings per share for the current fiscal year.

Insider Activity at GlobalFoundries

In other news, insider Pradheepa Raman sold 6,760 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $51.12, for a total value of $345,571.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,925 shares of company stock worth $637,054 in the last quarter.

Institutional Trading of GlobalFoundries

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Bessemer Group Inc. increased its position in shares of GlobalFoundries by 8,275,141.2% during the first quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company's stock valued at $125,147,000 after acquiring an additional 2,813,548 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of GlobalFoundries by 2.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,340,385 shares of the company's stock valued at $59,571,000 after acquiring an additional 31,590 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in GlobalFoundries during the third quarter valued at approximately $40,775,000. Bank of America Corp DE boosted its holdings in shares of 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. Finally, Healthcare of Ontario Pension Plan Trust Fund boosted its stake in shares of GlobalFoundries by 322.8% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 715,000 shares of the company's stock valued at $31,803,000 after purchasing an additional 545,900 shares in the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.