UBS Group Has Lowered Expectations for GlobalFoundries (NASDAQ:GFS) Stock Price

Key Points

• UBS Group has reduced its price target for GlobalFoundries from $43.00 to $37.00, indicating a potential upside of 12.85% from the stock's current price.
• GlobalFoundries reported earnings of $0.42 per share for the last quarter, exceeding expectations and showing a 3.4% increase in revenue year-over-year.
• The company currently holds an average rating of "Moderate Buy" from analysts, with a target price averaging around $47.46.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its price target reduced by analysts at UBS Group from $43.00 to $37.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's price target indicates a potential upside of 14.59% from the stock's previous close.

Several other equities analysts also recently issued reports on GFS. Morgan Stanley reduced their price target on shares of GlobalFoundries from $42.00 to $38.00 and set an "equal weight" rating for the company in a report on Wednesday, May 7th. Wall Street Zen upgraded shares of GlobalFoundries from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. 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 for the company. Argus initiated coverage on GlobalFoundries in a report on Tuesday, July 1st. They issued a "buy" rating and a $52.00 target price on the stock. Finally, Citigroup upped their target price 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 given a buy rating to the company. According to data from MarketBeat, GlobalFoundries presently has an average rating of "Hold" and an average target price of $44.92.

GlobalFoundries Stock Performance

NASDAQ GFS traded up $0.01 during trading hours on Wednesday, reaching $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 company has a current ratio of 2.63, a quick ratio of 1.92 and a debt-to-equity ratio of 0.13. The business has a 50-day simple moving average of $38.37 and a 200 day simple moving average of $37.92. GlobalFoundries has a 52 week low of $29.77 and a 52 week high of $47.69. The stock has a market cap of $17.85 billion, a PE ratio of 24.28, a PEG ratio of 1.05 and a beta of 1.50.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.42 earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter in the previous year, the company posted $0.38 earnings per share. The company's revenue for the quarter was up 3.4% compared to the same quarter last year. Equities research analysts predict that GlobalFoundries will post 1.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Treasurer of the State of North Carolina grew its position in shares of GlobalFoundries by 0.7% in the fourth quarter. Treasurer of the State of North Carolina now owns 43,238 shares of the company's stock valued at $1,855,000 after purchasing an additional 280 shares during the last quarter. SBI Securities Co. Ltd. grew its position in shares of GlobalFoundries by 26.3% in the first quarter. SBI Securities Co. Ltd. now owns 1,539 shares of the company's stock valued at $57,000 after purchasing an additional 320 shares during the last quarter. Voya Investment Management LLC grew its position in shares of GlobalFoundries by 2.9% in the first quarter. Voya Investment Management LLC now owns 12,288 shares of the company's stock valued at $454,000 after purchasing an additional 346 shares during the last quarter. Signaturefd LLC grew its position in shares of GlobalFoundries by 51.3% in the first quarter. Signaturefd LLC now owns 1,026 shares of the company's stock valued at $38,000 after purchasing an additional 348 shares during the last quarter. Finally, Allworth Financial LP grew its position in shares of GlobalFoundries by 85.5% in the second quarter. Allworth Financial LP now owns 894 shares of the company's stock valued at $34,000 after purchasing an additional 412 shares during the last quarter.

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.