GlobalFoundries (NASDAQ:GFS) Insider Sells $14,023.10 in Stock

Key Points

• GlobalFoundries insider Samak Azar sold 335 shares for $14,023.10 at an average price of $41.86 under a pre-arranged Rule 10b5-1 plan, reducing his stake by 4.71% to 6,784 shares.
• The company beat quarterly estimates, reporting EPS of $0.53 versus $0.51 expected and revenue of $1.90 billion, up 12.5% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $67.79; shares fell 2.7% in Friday midday trading. GlobalFoundries also announced a $0.12 quarterly dividend.

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) insider Samak Azar sold 335 shares of the stock in a transaction that occurred on Thursday, November 12th. The shares were sold at an average price of $41.86, for a total value of $14,023.10. Following the completion of the sale, the insider directly owned 6,784 shares of the company's stock, valued at approximately $283,978.24. The trade was a 4.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

GlobalFoundries Stock Down 2.7%

Shares of NASDAQ:GFS traded down $1.15 during midday trading on Friday, hitting $41.47. The stock had a trading volume of 2,780,537 shares, compared to its average volume of 4,472,097. The company has a market cap of $22.75 billion, a P/E ratio of 118.49, a PEG ratio of 1.38 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 business's 50-day simple moving average is $45.62 and its 200-day simple moving average is $54.82. The company has a quick ratio of 1.87, a current ratio of 2.58 and a debt-to-equity ratio of 0.13.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.02. GlobalFoundries had a net margin of 2.81% and a return on equity of 7.16%. The firm had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.89 billion. During the same period in the prior year, the firm posted $0.44 earnings per share. The company's quarterly revenue was up 12.5% compared to the same quarter last year. On average, sell-side analysts forecast that GlobalFoundries Inc. will post 1.55 earnings per share for the current fiscal year.

GlobalFoundries Announces Dividend

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

Institutional Investors Weigh In On GlobalFoundries

A number of hedge funds and other institutional investors have recently modified their holdings of GFS. Bessemer Group Inc. raised its holdings in GlobalFoundries by 8,275,141.2% in the 1st quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company's stock valued at $125,147,000 after acquiring an additional 2,813,548 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of GlobalFoundries during the 3rd quarter valued at $40,775,000. Phoenix Financial Ltd. grew its holdings in shares of GlobalFoundries by 42.3% during the 3rd quarter. Phoenix Financial Ltd. now owns 1,868,297 shares of the company's stock worth $89,753,000 after purchasing an additional 555,195 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its holdings in shares of GlobalFoundries by 322.8% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 715,000 shares of the company's stock worth $31,803,000 after purchasing an additional 545,900 shares in the last quarter. Finally, Atreides Management LP acquired a new stake in shares of GlobalFoundries during the 1st quarter worth $21,110,000.

Wall Street Analyst Weigh In

Several research analysts have recently commented on GFS shares. Stifel Nicolaus initiated coverage on GlobalFoundries in a research note on Tuesday, September 1st. They set a "buy" rating and a $60.00 target price for the company. Weiss Ratings lowered GlobalFoundries from a "hold (c)" rating to a "sell (d+)" rating in a report on Monday. TD Cowen dropped their price target on GlobalFoundries from $75.00 to $60.00 and set a "buy" rating on the stock in a research note on Thursday, November 5th. Needham & Company LLC cut their price target on GlobalFoundries from $80.00 to $55.00 and set a "buy" rating for the company in a report on Wednesday, November 4th. Finally, Wedbush cut their price target on GlobalFoundries from $72.00 to $45.00 and set a "neutral" rating for the company in a report on Thursday, November 5th. Eight analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $67.79.

About GlobalFoundries

GlobalFoundries is a semiconductor foundry that manufactures integrated circuits for customers that design their own chips. Its services include wafer fabrication, process technology development, packaging support and design enablement, helping customers bring semiconductor products to market without operating their own fabrication facilities. The company focuses on specialty technologies used in areas such as automotive electronics, communications, industrial systems, smart devices and data centers.

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