GlobalFoundries (NASDAQ:GFS) Downgraded by Wall Street Zen to "Hold"

Key Points

• GlobalFoundries has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a cautious outlook on the stock.
• Multiple brokerages have recently altered their ratings and price targets for GlobalFoundries, with an average target price now set at $44.92.
• The company's latest earnings report revealed earnings per share of $0.42, exceeding expectations, and a revenue increase of 3.4% year-over-year.

Wall Street Zen cut shares of GlobalFoundries (NASDAQ:GFS - Free Report) from a buy rating to a hold rating in a research report sent to investors on Saturday morning.

GFS has been the subject of a number of other research reports. Morgan Stanley lowered their target price on GlobalFoundries from $38.00 to $35.00 and set an "equal weight" rating for the company in a report on Wednesday, August 6th. The Goldman Sachs Group initiated coverage on GlobalFoundries in a report on Thursday, July 10th. They set a "neutral" rating and a $40.00 target price for the company. Cantor Fitzgerald restated a "neutral" rating on shares of GlobalFoundries in a report on Monday, May 5th. UBS Group lowered their target price on GlobalFoundries from $43.00 to $37.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Finally, Citigroup increased their price objective on GlobalFoundries from $35.00 to $42.00 and gave the company a "neutral" rating in a report on Monday, July 7th. Seven analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $44.92.

GlobalFoundries Trading Down 2.1%

Shares of GFS traded down $0.67 during mid-day trading on Friday, reaching $31.62. 3,190,633 shares of the company's stock traded hands, compared to its average volume of 2,084,591. The stock has a market cap of $17.48 billion, a P/E ratio of -150.56, a P/E/G ratio of 1.05 and a beta of 1.50. The stock's 50-day moving average is $38.37 and its two-hundred day moving average is $37.92. GlobalFoundries has a 12 month low of $29.77 and a 12 month high of $47.69. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.63 and a quick ratio of 1.92.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.06. GlobalFoundries had a positive return on equity of 6.55% and a negative net margin of 1.68%. The company had revenue of $1.69 billion for the quarter, compared to analysts' expectations of $1.68 billion. During the same quarter in the prior year, the firm earned $0.38 earnings per share. GlobalFoundries's revenue was up 3.4% compared to the same quarter last year. Research analysts forecast that GlobalFoundries will post 1.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On GlobalFoundries

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sumitomo Mitsui Trust Group Inc. grew its position in shares of GlobalFoundries by 15.7% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 126,266 shares of the company's stock valued at $4,660,000 after acquiring an additional 17,143 shares during the period. Geode Capital Management LLC grew its position in shares of GlobalFoundries by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 912,986 shares of the company's stock valued at $39,176,000 after acquiring an additional 16,921 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its position in shares of GlobalFoundries by 9.6% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 907,446 shares of the company's stock valued at $33,476,000 after acquiring an additional 79,670 shares during the period. Renaissance Technologies LLC acquired a new stake in shares of GlobalFoundries during the 4th quarter valued at about $1,004,000. Finally, Janney Montgomery Scott LLC grew its position in shares of GlobalFoundries by 49.0% during the 1st quarter. Janney Montgomery Scott LLC now owns 31,342 shares of the company's stock valued at $1,157,000 after acquiring an additional 10,313 shares during the period.

About GlobalFoundries

GlobalFoundries Inc, a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units.