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

Key Points

• Wedbush analysts have lowered GlobalFoundries' price target from $48.00 to $40.00, indicating a potential upside of 20.37% from its current price.
• GlobalFoundries recently reported $0.42 earnings per share, surpassing expectations and reflecting a 3.4% revenue increase compared to the same quarter last year.
• Institutional investors have significantly increased their stakes in GlobalFoundries, with Pacer Advisors Inc. raising its stake by a remarkable 8,540.7% in the first quarter.

GlobalFoundries (NASDAQ:GFS - Get Free Report) had its price objective lowered by investment analysts at Wedbush from $48.00 to $40.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Wedbush's price target points to a potential upside of 23.88% from the stock's current price.

Several other analysts have also issued reports on the stock. Argus assumed coverage on shares of GlobalFoundries in a research report on Tuesday, July 1st. They issued a "buy" rating and a $52.00 target price on the stock. Cantor Fitzgerald reiterated a "neutral" rating on shares of GlobalFoundries in a report on Monday, May 5th. UBS Group cut their price objective on GlobalFoundries from $43.00 to $37.00 and set a "neutral" rating for the company in a research note on Wednesday. Citigroup raised their target price on GlobalFoundries from $35.00 to $42.00 and gave the company a "neutral" rating in a research report on Monday, July 7th. Finally, The Goldman Sachs Group assumed coverage on GlobalFoundries in a research report on Thursday, July 10th. They set a "neutral" rating and a $40.00 price target for the company. Seven investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, GlobalFoundries has an average rating of "Hold" and a consensus target price of $44.92.

GlobalFoundries Stock Performance

GlobalFoundries stock traded up $0.01 during midday trading on Wednesday, hitting $32.29. 3,216,868 shares of the company were exchanged, compared to its average volume of 2,398,070. The business has a fifty day simple moving average of $38.37 and a two-hundred day simple moving average of $37.92. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.92 and a current ratio of 2.63. The firm has a market capitalization of $17.85 billion, a PE ratio of 24.28, a price-to-earnings-growth ratio of 1.05 and a beta of 1.50. GlobalFoundries has a fifty-two week low of $29.77 and a fifty-two week high of $47.69.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.42 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter in the prior year, the firm posted $0.38 earnings per share. The company's revenue was up 3.4% compared to the same quarter last year. On average, sell-side analysts forecast that GlobalFoundries will post 1.31 earnings per share for the current year.

Institutional Investors Weigh In On GlobalFoundries

Hedge funds have recently added to or reduced their stakes in the business. Treasurer of the State of North Carolina increased its position in shares of GlobalFoundries by 0.7% during the fourth quarter. Treasurer of the State of North Carolina now owns 43,238 shares of the company's stock worth $1,855,000 after acquiring an additional 280 shares during the period. SBI Securities Co. Ltd. grew its stake in GlobalFoundries by 26.3% during the 1st quarter. SBI Securities Co. Ltd. now owns 1,539 shares of the company's stock worth $57,000 after purchasing an additional 320 shares in the last quarter. Voya Investment Management LLC raised its position in GlobalFoundries by 2.9% in the 1st 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 in the last quarter. Signaturefd LLC boosted its stake in shares of GlobalFoundries by 51.3% in the 1st quarter. Signaturefd LLC now owns 1,026 shares of the company's stock valued at $38,000 after buying an additional 348 shares during the period. Finally, Allworth Financial LP grew its position in shares of GlobalFoundries by 85.5% during the second quarter. Allworth Financial LP now owns 894 shares of the company's stock worth $34,000 after buying an additional 412 shares in the last quarter.

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.