84,150 Shares of GlobalFoundries Inc. $GFS Purchased by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management acquired 84,150 GlobalFoundries shares in the third quarter, worth approximately $4.03 million.
• GlobalFoundries reported quarterly earnings of $0.53 per share, beating estimates of $0.51, while revenue rose 12.5% year over year to $1.90 billion.
• Analyst views remain mixed: the consensus rating is Hold, with an average price target of $67.79, though several firms have recently cut their targets.

Rakuten Investment Management Inc. acquired a new stake in GlobalFoundries Inc. (NASDAQ:GFS - Free Report) in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 84,150 shares of the company's stock, valued at approximately $4,027,000.

Other large investors have also recently added to or reduced their stakes in the company. V Square Quantitative Management LLC acquired a new position in shares of GlobalFoundries in the third quarter worth $30,000. FNY Investment Advisers LLC purchased a new stake in shares of GlobalFoundries during the second quarter worth $60,000. Parallel Advisors LLC raised its stake in shares of GlobalFoundries by 39.8% in the first quarter. Parallel Advisors LLC now owns 832 shares of the company's stock valued at $37,000 after acquiring an additional 237 shares in the last quarter. Global Assets Advisory LLC acquired a new stake in shares of GlobalFoundries in the first quarter valued at $53,000. Finally, Signaturefd LLC raised its stake in shares of GlobalFoundries by 22.3% in the third quarter. Signaturefd LLC now owns 1,370 shares of the company's stock valued at $66,000 after acquiring an additional 250 shares in the last quarter.

Insider Buying and Selling

In related news, Director Ganesh Moorthy purchased 2,500 shares of the company's stock in a transaction on Thursday, November 5th. The shares were bought at an average cost of $37.48 per share, for a total transaction of $93,700.00. Following the completion of the purchase, the director directly owned 5,500 shares of the company's stock, valued at approximately $206,140. This trade represents a 83.33% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Pradheepa Raman sold 6,760 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $51.12, for a total transaction of $345,571.20. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,925 shares of company stock valued at $633,881 over the last ninety days.

Analysts Set New Price Targets

Several research firms recently commented on GFS. Morgan Stanley lowered their target price on GlobalFoundries from $60.00 to $56.00 and set an "equal weight" rating for the company in a research note on Monday, November 2nd. Weiss Ratings reiterated a "hold (c)" rating on shares of GlobalFoundries in a research note on Wednesday, August 26th. Cantor Fitzgerald restated an "overweight" rating on shares of GlobalFoundries in a research note on Thursday, October 15th. Deutsche Bank Aktiengesellschaft set a $75.00 target price on shares of GlobalFoundries in a report on Monday, August 10th. Finally, Wedbush decreased their price target on shares of GlobalFoundries from $72.00 to $45.00 and set a "neutral" rating for the company in a research note on Thursday. Eight 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. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $67.79.

GlobalFoundries Stock Up 6.2%

GlobalFoundries stock traded up $2.26 during midday trading on Friday, reaching $38.62. The company's stock had a trading volume of 5,023,286 shares, compared to its average volume of 5,924,218. The company has a market cap of $21.19 billion, a P/E ratio of 110.34, a P/E/G ratio of 1.33 and a beta of 1.78. 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 business has a 50-day simple moving average of $45.84 and a 200-day simple moving average of $54.88. GlobalFoundries Inc. 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 released its quarterly earnings data on Wednesday, November 4th. The company reported $0.53 earnings per share (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 business had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.89 billion. During the same period in the prior year, the firm posted $0.44 EPS. The business's quarterly revenue was up 12.5% compared to the same quarter last year. On average, research analysts expect that GlobalFoundries Inc. will post 1.50 earnings per share for the current fiscal year.

GlobalFoundries Announces Dividend

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

GlobalFoundries News Summary

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

About GlobalFoundries

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.

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