GlobalFoundries (NASDAQ:GFS) Shares Gap Down - Should You Sell?

Key Points

• GlobalFoundries shares gapped down from $36.18 to $33.30 before the market opened, currently trading at $33.36 with a volume of 555,027 shares.
• Wall Street analysts have a consensus rating of "Moderate Buy" for GlobalFoundries, with an average price target of $47.92, despite varying ratings from different firms.
• The company reported quarterly earnings of $0.34 per share, beating estimates, with revenue increasing year-over-year by 2.3% to $1.59 billion.

Shares of GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $36.18, but opened at $33.30. GlobalFoundries shares last traded at $33.36, with a volume of 555,027 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on GFS shares. UBS Group upped their price target on shares of GlobalFoundries from $37.00 to $43.00 and gave the stock a "neutral" rating in a research report on Monday, July 28th. Citigroup upped their price target on shares of GlobalFoundries from $35.00 to $42.00 and gave the stock a "neutral" rating in a research report on Monday, July 7th. Morgan Stanley lowered their price target on shares of GlobalFoundries from $42.00 to $38.00 and set an "equal weight" rating for the company in a research 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. Finally, The Goldman Sachs Group started coverage on shares of GlobalFoundries in a research report on Thursday, July 10th. They set a "neutral" rating and a $40.00 price target for the company. Six equities research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $47.92.

GlobalFoundries Stock Down 10.1%

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.77 and a current ratio of 2.51. The company has a market capitalization of $17.98 billion, a price-to-earnings ratio of -95.49, a P/E/G ratio of 1.14 and a beta of 1.50. The stock's fifty day simple moving average is $38.69 and its two-hundred day simple moving average is $38.20.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The company reported $0.34 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.06. GlobalFoundries had a negative net margin of 2.77% and a positive return on equity of 6.28%. The company had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the prior year, the company earned $0.31 EPS. GlobalFoundries's revenue was up 2.3% on a year-over-year basis. On average, sell-side analysts anticipate that GlobalFoundries Inc. will post 1.31 EPS for the current year.

Institutional Investors Weigh In On GlobalFoundries

Institutional investors and hedge funds have recently bought and sold shares of the business. Pacer Advisors Inc. lifted its stake in GlobalFoundries by 8,540.7% during the first quarter. Pacer Advisors Inc. now owns 2,472,634 shares of the company's stock valued at $91,265,000 after buying an additional 2,444,018 shares in the last quarter. Analog Century Management LP acquired a new position in shares of GlobalFoundries in the 4th quarter valued at about $50,298,000. Alyeska Investment Group L.P. acquired a new position in shares of GlobalFoundries in the 1st quarter valued at about $40,493,000. Woodline Partners LP acquired a new position in shares of GlobalFoundries in the 1st quarter valued at about $33,504,000. Finally, BNP Paribas Financial Markets acquired a new position in shares of GlobalFoundries in the 4th quarter valued at about $22,912,000.

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.

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