GlobalFoundries Sees Unusually High Options Volume (NASDAQ:GFS)

Key Points

• GlobalFoundries saw unusually heavy call options trading on Wednesday, with 23,160 contracts bought, about 164% above its normal daily volume of 8,770 calls.
• The stock rose 2.0% to $86.31 and has rallied well above its longer-term averages, while the company reported Q1 EPS of $0.40, beating estimates by $0.05 on revenue of $1.63 billion.
• GlobalFoundries also declared a quarterly dividend of $0.12 per share, payable July 14, and analysts currently have a consensus Hold rating with an average price target of $69.88.

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) saw some unusual options trading activity on Wednesday. Traders bought 23,160 call options on the company. This is an increase of approximately 164% compared to the typical daily volume of 8,770 call options.

GlobalFoundries Trading Up 2.0%

NASDAQ:GFS traded up $1.71 on Wednesday, reaching $86.31. 4,195,053 shares of the company's stock were exchanged, compared to its average volume of 4,573,419. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $48.02 billion, a price-to-earnings ratio of 62.12, a price-to-earnings-growth ratio of 2.82 and a beta of 1.77. The business has a fifty day moving average of $60.91 and a 200-day moving average of $47.92. GlobalFoundries has a 52-week low of $31.51 and a 52-week high of $92.55.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.35 by $0.05. The company had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.63 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The business's revenue for the quarter was up 3.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.34 earnings per share. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. As a group, analysts expect that GlobalFoundries will post 1.38 earnings per share for the current year.

GlobalFoundries Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Wednesday, June 24th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Wednesday, June 24th. GlobalFoundries's dividend payout ratio is presently 34.53%.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of GlobalFoundries from $45.00 to $70.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $65.00 target price on shares of GlobalFoundries in a research report on Wednesday, May 6th. Morgan Stanley boosted their price target on shares of GlobalFoundries from $58.00 to $65.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Loop Capital set a $80.00 price target on shares of GlobalFoundries in a research note on Monday, May 4th. Finally, Robert W. Baird set a $100.00 price target on shares of GlobalFoundries in a research note on Wednesday, May 6th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $69.88.

Insider Buying and Selling at GlobalFoundries

In other GlobalFoundries news, Director Glenda Dorchak sold 4,000 shares of the company's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $58.46, for a total value of $233,840.00. Following the transaction, the director owned 18,867 shares of the company's stock, valued at $1,102,964.82. This represents a 17.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 500 shares of the company's stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $59.66, for a total transaction of $29,830.00. Following the completion of the transaction, the insider directly owned 16,994 shares in the company, valued at $1,013,862.04. The trade was a 2.86% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 20,170 shares of company stock valued at $1,194,864 over the last 90 days.

Institutional Trading of GlobalFoundries

A number of large investors have recently made changes to their positions in the company. Parallel Advisors LLC increased its stake in shares of GlobalFoundries by 39.8% during the first quarter. Parallel Advisors LLC now owns 832 shares of the company's stock worth $37,000 after buying an additional 237 shares during the period. Boothe Investment Group Inc. increased its stake in shares of GlobalFoundries by 1.4% during the first quarter. Boothe Investment Group Inc. now owns 77,458 shares of the company's stock worth $3,445,000 after buying an additional 1,092 shares during the period. Western Wealth Management LLC purchased a new stake in shares of GlobalFoundries during the first quarter worth approximately $68,000. Bank of America Corp DE increased its stake in shares of GlobalFoundries by 106.1% during the first quarter. Bank of America Corp DE now owns 875,361 shares of the company's stock worth $38,936,000 after buying an additional 450,722 shares during the period. Finally, Janus Henderson Group PLC purchased a new stake in shares of GlobalFoundries during the first quarter worth approximately $1,108,000.

GlobalFoundries Company Profile

GlobalFoundries, Inc NASDAQ: GFS is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.

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