Insider Buying: GlobalFoundries (NASDAQ:GFS) Director Buys $380,000.00 in Stock

Key Points

• Director Jack Lazar bought 10,000 GlobalFoundries shares for $380,000 at $38 per share, increasing his stake by 35.59% to 38,094 shares.
• GlobalFoundries beat quarterly earnings and revenue expectations, reporting EPS of $0.53 versus $0.51 expected and revenue of $1.90 billion; revenue rose 12.5% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $67.79. The company also announced a quarterly dividend of $0.12 per share, a 1.2% yield at the cited share price.

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) Director Jack Lazar purchased 10,000 shares of the stock in a transaction that occurred on Friday, November 6th. The stock was purchased at an average price of $38.00 per share, for a total transaction of $380,000.00. Following the acquisition, the director owned 38,094 shares in the company, valued at approximately $1,447,572. This trade represents a 35.59% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link.

GlobalFoundries Price Performance

Shares of GFS stock traded up $1.89 during mid-day trading on Monday, reaching $40.51. The stock had a trading volume of 4,320,676 shares, compared to its average volume of 4,479,912. The company has a market cap of $22.23 billion, a P/E ratio of 115.74, a price-to-earnings-growth ratio of 1.27 and a beta of 1.78. The company has a current ratio of 2.58, a quick ratio of 1.87 and a debt-to-equity ratio of 0.13. GlobalFoundries Inc. has a 12-month low of $32.02 and a 12-month high of $92.55. The business has a 50-day simple moving average of $45.84 and a 200 day simple moving average of $54.88.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.53 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.02. The company had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.89 billion. GlobalFoundries had a return on equity of 7.16% and a net margin of 2.81%. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.44 earnings per share. On average, sell-side analysts anticipate that GlobalFoundries Inc. will post 1.50 earnings per share for the current year.

GlobalFoundries Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Robert W. Baird set a $140.00 price target on shares of GlobalFoundries in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft set a $75.00 price target on shares of GlobalFoundries in a report on Monday, August 10th. Needham & Company LLC cut their price objective on shares of GlobalFoundries from $80.00 to $55.00 and set a "buy" rating for the company in a research report on Wednesday, November 4th. Morgan Stanley reduced their price objective 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, November 2nd. Finally, Stifel Nicolaus started coverage on shares of GlobalFoundries in a research report on Tuesday, September 1st. They set a "buy" rating and a $60.00 target price on the stock. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $67.79.

Hedge Funds Weigh In On GlobalFoundries

Several institutional investors have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC purchased a new stake in shares of GlobalFoundries during the 3rd quarter valued at $30,000. FNY Investment Advisers LLC acquired a new stake in shares of GlobalFoundries during the 2nd quarter worth $60,000. Parallel Advisors LLC increased its holdings in shares of GlobalFoundries by 39.8% during the 1st quarter. Parallel Advisors LLC now owns 832 shares of the company's stock worth $37,000 after buying an additional 237 shares during the last quarter. Global Assets Advisory LLC purchased a new position in shares of GlobalFoundries in the 1st quarter worth $53,000. Finally, Signaturefd LLC raised its position in shares of GlobalFoundries by 22.3% in the 3rd quarter. Signaturefd LLC now owns 1,370 shares of the company's stock worth $66,000 after buying an additional 250 shares during the period.

GlobalFoundries Company Profile

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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