GlobalFoundries Inc. (NASDAQ:GFS) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• GlobalFoundries has a consensus analyst rating of "Hold" from 20 brokerage firms, with 9 buys, 10 holds, and 1 sell. The average 12-month price target is about $73.29.
• The stock was trading at $83.39 and was down 7.0% in the session highlighted, while still sitting near its 52-week high of $92.55. Its market cap is about $45.76 billion.
• GlobalFoundries recently beat quarterly EPS estimates, reporting $0.40 per share versus $0.35 expected, and it also announced a quarterly dividend of $0.12 per share. The dividend is payable on July 14 and implies an annual yield of 0.6%.

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) has been given a consensus recommendation of "Hold" by the twenty ratings firms that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, ten have assigned a hold recommendation and nine have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $73.2941.

GFS has been the topic of a number of analyst reports. Cantor Fitzgerald upgraded shares of GlobalFoundries from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $50.00 to $80.00 in a research report on Monday, May 4th. JPMorgan Chase & Co. raised their target price on shares of GlobalFoundries from $45.00 to $70.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. The Goldman Sachs Group restated a "neutral" rating and set a $70.00 target price on shares of GlobalFoundries in a research report on Tuesday, May 5th. Arete Research set a $95.00 target price on shares of GlobalFoundries in a research report on Wednesday, June 10th. Finally, Needham & Company LLC raised their target price on shares of GlobalFoundries from $55.00 to $80.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th.

GlobalFoundries Stock Down 7.0%

GFS stock opened at $83.39 on Wednesday. The company's 50 day simple moving average is $72.75 and its 200-day simple moving average is $53.26. The firm has a market capitalization of $45.76 billion, a PE ratio of 59.99, a P/E/G ratio of 3.17 and a beta of 1.77. GlobalFoundries has a 12 month low of $31.51 and a 12 month high of $92.55. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.59 and a quick ratio of 1.87.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.35 by $0.05. The business had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.63 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The company's quarterly revenue was up 3.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.34 earnings per share. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. Equities analysts expect that GlobalFoundries will post 1.38 earnings per share for the current fiscal year.

GlobalFoundries Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Wednesday, June 24th will be given a dividend of $0.12 per share. The ex-dividend date is Wednesday, June 24th. This represents a $0.48 dividend on an annualized basis and a yield of 0.6%.

Insider Buying and Selling

In related news, insider Samak L. Azar sold 335 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $83.35, for a total transaction of $27,922.25. Following the sale, the insider owned 13,819 shares in the company, valued at approximately $1,151,813.65. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,800 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $75.17, for a total transaction of $210,476.00. Following the sale, the insider owned 6,695 shares in the company, valued at approximately $503,263.15. This trade represents a 29.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 21,675 shares of company stock worth $1,387,882.

Hedge Funds Weigh In On GlobalFoundries

A number of large investors have recently bought and sold shares of the stock. Parallel Advisors LLC raised its stake in GlobalFoundries by 39.8% during the first quarter. Parallel Advisors LLC now owns 832 shares of the company's stock worth $37,000 after purchasing an additional 237 shares during the period. Boothe Investment Group Inc. raised its stake in GlobalFoundries by 1.4% during the first quarter. Boothe Investment Group Inc. now owns 77,458 shares of the company's stock worth $3,445,000 after purchasing an additional 1,092 shares during the period. Western Wealth Management LLC purchased a new position in GlobalFoundries during the first quarter worth approximately $68,000. Bank of America Corp DE raised its stake in GlobalFoundries by 106.1% during the first 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 during the period. Finally, Janus Henderson Group PLC purchased a new position in GlobalFoundries during the first quarter worth approximately $1,108,000.

About GlobalFoundries

GlobalFoundries, Inc NASDAQ: GFS is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.

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