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

Key Points

• Morgan Stanley has reduced its price target for GlobalFoundries from $38.00 to $35.00, indicating a potential upside of 5.32% from the current stock price.
• GlobalFoundries reported earnings of $0.42 per share, surpassing analysts' expectations, and generated $1.69 billion in revenue for the last quarter.
• Several analysts have mixed ratings on GlobalFoundries, with an average rating of "Moderate Buy" and an average target price of $45.69.

GlobalFoundries (NASDAQ:GFS - Free Report) had its price target reduced by Morgan Stanley from $38.00 to $35.00 in a report published on Wednesday,Benzinga reports. They currently have an equal weight rating on the stock.

Several other equities analysts also recently commented on the company. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of GlobalFoundries in a research report on Monday, May 5th. The Goldman Sachs Group began coverage on shares of GlobalFoundries in a report on Thursday, July 10th. They issued a "neutral" rating and a $40.00 price target on the stock. Wall Street Zen upgraded shares of GlobalFoundries from a "hold" rating to a "buy" rating in a report on Saturday, July 5th. Citigroup boosted their price objective on shares of GlobalFoundries from $35.00 to $42.00 and gave the company a "neutral" rating in a research report on Monday, July 7th. Finally, UBS Group reduced their target price on shares of GlobalFoundries from $43.00 to $37.00 and set a "neutral" rating on the stock in a research report on Wednesday. Seven investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $44.92.

GlobalFoundries Price Performance

GFS traded up $0.01 during trading hours on Wednesday, hitting $32.29. The company's stock had a trading volume of 3,216,868 shares, compared to its average volume of 2,398,070. The business's 50-day moving average price is $38.37 and its 200-day moving average price is $37.92. The company has a current ratio of 2.63, a quick ratio of 1.92 and a debt-to-equity ratio of 0.13. The stock has a market cap of $17.85 billion, a price-to-earnings ratio of 24.28, a P/E/G ratio of 1.05 and a beta of 1.50. GlobalFoundries has a 12 month low of $29.77 and a 12 month high of $47.69.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last released its earnings results 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 negative net margin of 1.68% and a positive return on equity of 6.55%. The firm had revenue of $1.69 billion during the quarter, compared to analyst estimates of $1.68 billion. The business's revenue was up 3.4% on a year-over-year basis. During the same quarter last year, the business earned $0.38 EPS. Sell-side analysts expect that GlobalFoundries will post 1.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of GFS. Sumitomo Mitsui Trust Group Inc. increased its position in shares of GlobalFoundries by 15.7% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 126,266 shares of the company's stock worth $4,660,000 after purchasing an additional 17,143 shares in the last quarter. Geode Capital Management LLC increased its position in 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 buying an additional 16,921 shares in the last quarter. Sei Investments Co. raised its stake in GlobalFoundries by 7.6% in the fourth quarter. Sei Investments Co. now owns 9,495 shares of the company's stock valued at $407,000 after buying an additional 667 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. raised its stake in GlobalFoundries by 9.6% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 907,446 shares of the company's stock valued at $33,476,000 after buying an additional 79,670 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new stake in GlobalFoundries in the fourth quarter worth about $1,004,000.

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.