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

Key Points

• GlobalFoundries has been downgraded from a "buy" to a "hold" rating by analysts at Wall Street Zen, reflecting concerns over its stock performance.
• Several analysts have adjusted their price targets, with Morgan Stanley reducing theirs from $38.00 to $35.00, and UBS Group from $43.00 to $37.00, indicating a cautious outlook on the company's financial health.
• Despite the downgrade, GlobalFoundries reported stronger-than-expected quarterly earnings of $0.42 per share, surpassing analysts' forecasts and showing a year-over-year revenue increase of 3.4%.

Wall Street Zen lowered shares of GlobalFoundries (NASDAQ:GFS - Free Report) from a buy rating to a hold rating in a research note published on Sunday morning.

GFS has been the topic of a number of other research reports. The Goldman Sachs Group initiated coverage on shares of GlobalFoundries in a research note on Thursday, July 10th. They set a "neutral" rating and a $40.00 price objective on the stock. Arete upgraded shares of GlobalFoundries from a "sell" rating to a "neutral" rating and set a $37.00 target price for the company in a report on Wednesday, August 27th. Citigroup raised their target price on shares of GlobalFoundries from $35.00 to $42.00 and gave the stock a "neutral" rating in a report on Monday, July 7th. Arete Research set a $37.00 target price on shares of GlobalFoundries in a report on Wednesday, August 27th. Finally, Morgan Stanley reduced their target price on shares of GlobalFoundries from $38.00 to $35.00 and set an "equal weight" rating for the company in a report on Wednesday, August 6th. Six investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, GlobalFoundries presently has an average rating of "Hold" and a consensus price target of $43.79.

GlobalFoundries Price Performance

Shares of NASDAQ GFS traded down $0.50 during mid-day trading on Friday, reaching $31.67. 1,987,225 shares of the company traded hands, compared to its average volume of 2,241,792. GlobalFoundries has a fifty-two week low of $29.77 and a fifty-two week 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. The firm has a market cap of $17.51 billion, a PE ratio of -150.80, a price-to-earnings-growth ratio of 1.05 and a beta of 1.48. The stock has a fifty day simple moving average of $35.89 and a 200-day simple moving average of $36.49.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.42 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.06. GlobalFoundries had a negative net margin of 1.68% and a positive return on equity of 6.55%. The business had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.68 billion. During the same quarter last year, the business earned $0.38 earnings per share. The business's revenue for the quarter was up 3.4% on a year-over-year basis. GlobalFoundries has set its Q3 2025 guidance at 0.330-0.430 EPS. Equities research analysts anticipate that GlobalFoundries will post 1.31 EPS for the current fiscal year.

Hedge Funds Weigh In On GlobalFoundries

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GFS. Deutsche Bank AG boosted its stake in shares of GlobalFoundries by 42.4% during the 4th quarter. Deutsche Bank AG now owns 659,647 shares of the company's stock valued at $28,305,000 after buying an additional 196,290 shares during the period. Ethic Inc. boosted its stake in shares of GlobalFoundries by 25.8% during the 4th quarter. Ethic Inc. now owns 35,854 shares of the company's stock valued at $1,539,000 after buying an additional 7,349 shares during the period. Maytus Capital Management LLC boosted its stake in shares of GlobalFoundries by 50.6% during the 4th quarter. Maytus Capital Management LLC now owns 128,000 shares of the company's stock valued at $5,492,000 after buying an additional 43,000 shares during the period. Nissay Asset Management Corp Japan ADV boosted its stake in shares of GlobalFoundries by 6.7% during the 4th quarter. Nissay Asset Management Corp Japan ADV now owns 174,741 shares of the company's stock valued at $7,720,000 after buying an additional 10,902 shares during the period. Finally, Quantinno Capital Management LP acquired a new stake in shares of GlobalFoundries during the 4th quarter valued at $423,000.

GlobalFoundries Company Profile

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.