GlobalFoundries (NASDAQ:GFS) Director Ganesh Moorthy Purchases 2,500 Shares of Stock

Key Points

• Director Ganesh Moorthy bought 2,500 shares for $93,700 at an average price of $37.48, increasing his direct stake by 83.3% to 5,500 shares.
• GlobalFoundries beat quarterly estimates, reporting EPS of $0.53 versus $0.51 expected and revenue of $1.90 billion; revenue rose 12.5% year over year.
• Analysts have lowered several price targets, and the stock carries a consensus Hold rating with a $67.79 consensus target.

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) Director Ganesh Moorthy purchased 2,500 shares of the firm's stock in a transaction on Thursday, November 5th. The stock was bought at an average cost of $37.48 per share, with a total value of $93,700.00. Following the completion of the acquisition, the director directly owned 5,500 shares of the company's stock, valued at $206,140. This trade represents a 83.33% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

GlobalFoundries Stock Performance

GlobalFoundries stock traded up $2.26 during mid-day trading on Friday, hitting $38.62. The company had a trading volume of 5,023,286 shares, compared to its average volume of 4,480,622. The company has a market capitalization of $21.19 billion, a price-to-earnings ratio of 110.34, a P/E/G ratio of 1.28 and a beta of 1.78. GlobalFoundries Inc. has a 12-month low of $32.02 and a 12-month high of $92.55. The company's fifty day moving average is $45.99 and its 200-day moving average is $54.90. The company has a current ratio of 2.48, a quick ratio of 1.74 and a debt-to-equity ratio of 0.13.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last posted its earnings results on Wednesday, November 4th. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.02. GlobalFoundries had a net margin of 2.81% and a return on equity of 7.18%. The firm had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.89 billion. During the same period in the previous year, the firm earned $0.44 EPS. The business's quarterly revenue was up 12.5% on a year-over-year basis. Equities research analysts predict that GlobalFoundries Inc. will post 1.48 EPS for the current year.

GlobalFoundries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 14th. Shareholders of record on Tuesday, December 22nd will be issued a $0.12 dividend. The ex-dividend date of this dividend is Tuesday, December 22nd. This represents a $0.48 dividend on an annualized basis and a yield of 1.2%. GlobalFoundries's payout ratio is presently 137.14%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Sei Investments Co. grew its stake in shares of GlobalFoundries by 239.0% in the 1st quarter. Sei Investments Co. now owns 48,246 shares of the company's stock valued at $2,146,000 after buying an additional 34,014 shares during the period. Bank of America Corp DE raised its position in shares of GlobalFoundries by 106.1% during the 1st quarter. Bank of America Corp DE now owns 875,361 shares of the company's stock valued at $38,936,000 after buying an additional 450,722 shares during the period. First Trust Advisors LP raised its position in shares of GlobalFoundries by 97.4% during the 1st quarter. First Trust Advisors LP now owns 264,837 shares of the company's stock valued at $11,780,000 after buying an additional 130,643 shares during the period. Public Employees Retirement System of Ohio purchased a new stake in shares of GlobalFoundries during the 2nd quarter valued at approximately $3,067,000. Finally, Janus Henderson Group PLC acquired a new position in GlobalFoundries in the first quarter valued at approximately $1,108,000.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on GFS shares. Morgan Stanley lowered their target price on shares of GlobalFoundries from $60.00 to $56.00 and set an "equal weight" rating on the stock in a research note on Monday. UBS Group cut their price target on GlobalFoundries from $48.00 to $43.00 and set a "neutral" rating for the company in a research note on Thursday. Susquehanna reduced their price target on GlobalFoundries from $125.00 to $110.00 and set a "positive" rating for the company in a report on Thursday. Needham & Company LLC lowered their price target on GlobalFoundries from $80.00 to $55.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, Zacks Research lowered GlobalFoundries from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Eight research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $67.79.

Key Stories Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: A Seeking Alpha article highlights improving margins and commitments that could support future growth. Another report points to a record third-quarter margin, suggesting operational progress. Margins Improve As GlobalFoundries Secures Commitments For Future Growth GlobalFoundries stock: Company posts record Q3 margin
• Positive Sentiment: TD Cowen cut its target to $60 from $75 but kept a Buy rating, while Susquehanna lowered its target to $110 from $125 and retained a positive rating. TD Cowen price-target update Susquehanna price-target update
• Neutral Sentiment: UBS, JPMorgan, and Citi lowered their targets to $43, $50, and $46, respectively, and maintained Neutral ratings. Their targets still imply potential upside from the cited $38.62 share price, but the cuts signal reduced expectations. UBS rating update JPMorgan rating update Citi rating update
• Negative Sentiment: Wedbush made a particularly steep reduction, cutting its target to $45 from $72 and citing a lower valuation multiple. The broader wave of target cuts—including reductions from Citi, JPMorgan, UBS, and TD Cowen—could reinforce concerns about GFS’s near-term valuation and outlook. Wedbush cuts GlobalFoundries price target

About GlobalFoundries

GlobalFoundries Inc NASDAQ: GFS is a semiconductor manufacturer that operates as a contract foundry, producing chips designed by other companies. The company provides wafer fabrication and related services for customers in the automotive, communications infrastructure, aerospace and defense, industrial, and consumer electronics markets.

GlobalFoundries specializes in differentiated semiconductor technologies rather than competing primarily in the most advanced logic-processing nodes. Its offerings include radio-frequency and silicon-on-insulator technologies, embedded memory, power-management solutions, high-voltage processes, silicon photonics, and other specialty platforms used in connectivity, sensing, automotive electronics, and edge-computing applications.

The company was established in 2009 through the separation of Advanced Micro Devices' manufacturing operations, with investment from the Abu Dhabi-based Advanced Technology Investment Company.

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