GlobalFoundries (NASDAQ:GFS) Stock Price Up 4.4% - What's Next?

Key Points

• GlobalFoundries shares rose 4.4% to about $49.13, although trading volume was 77% below the average session level.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $74.32 target price; estimates range from $55 to $140.
• The company exceeded quarterly EPS and revenue expectations, reported 5.8% year-over-year revenue growth, and declared a quarterly dividend of $0.12, representing a 1.0% annualized yield.

Shares of GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) rose 4.4% during mid-day trading on Friday. The company traded as high as $48.88 and last traded at $49.1250. 974,951 shares traded hands during trading, a decline of 77% from the average session volume of 4,261,819 shares. The stock had previously closed at $47.05.

Analysts Set New Price Targets

Several research firms have recently weighed in on GFS. Robert W. Baird set a $140.00 target price on GlobalFoundries in a research report on Thursday, August 6th. Arete Research set a $95.00 price objective on shares of GlobalFoundries in a research note on Wednesday, June 10th. Zacks Research cut shares of GlobalFoundries from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Jefferies Financial Group set a $60.00 target price on shares of GlobalFoundries in a research note on Wednesday, August 5th. Finally, UBS Group lowered their target price on shares of GlobalFoundries from $61.00 to $55.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, GlobalFoundries currently has a consensus rating of "Hold" and a consensus target price of $74.32.

GlobalFoundries Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.48 and a quick ratio of 1.74. The firm has a fifty day moving average price of $48.99 and a two-hundred day moving average price of $59.28. The stock has a market capitalization of $26.77 billion, a PE ratio of 38.09, a P/E/G ratio of 1.52 and a beta of 1.78.

GlobalFoundries (NASDAQ:GFS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.03. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%.The company had revenue of $1.79 billion during the quarter, compared to analysts' expectations of $1.77 billion. During the same quarter in the previous year, the business earned $0.42 EPS. GlobalFoundries's revenue was up 5.8% compared to the same quarter last year. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. Research analysts expect that GlobalFoundries Inc. will post 1.48 EPS for the current year.

GlobalFoundries Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 23rd will be issued a $0.12 dividend. The ex-dividend date is Wednesday, September 23rd. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.0%. GlobalFoundries's dividend payout ratio is presently 37.50%.

Insider Activity at GlobalFoundries

In other GlobalFoundries news, insider Michael Hogan sold 2,200 shares of the business's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $65.90, for a total value of $144,980.00. Following the completion of the sale, the insider directly owned 1,395 shares of the company's stock, valued at $91,930.50. The trade was a 61.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pradheepa Raman sold 6,760 shares of the company's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $51.12, for a total transaction of $345,571.20. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 16,810 shares of company stock worth $936,656.

Institutional Trading of GlobalFoundries

Institutional investors and hedge funds have recently modified their holdings of the stock. Aster Capital Management DIFC Ltd increased its holdings in GlobalFoundries by 844.7% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 62,593 shares of the company's stock valued at $2,186,000 after buying an additional 55,967 shares during the period. Sei Investments Co. boosted its position in GlobalFoundries by 239.0% during the 1st quarter. Sei Investments Co. now owns 48,246 shares of the company's stock valued at $2,146,000 after acquiring an additional 34,014 shares in the last quarter. AXQ Capital LP boosted its position in GlobalFoundries by 438.9% during the 4th quarter. AXQ Capital LP now owns 49,617 shares of the company's stock valued at $1,733,000 after acquiring an additional 40,410 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of GlobalFoundries by 106.1% in the 1st quarter. Bank of America Corp DE now owns 875,361 shares of the company's stock valued at $38,936,000 after acquiring an additional 450,722 shares during the period. Finally, Monaco Asset Management SAM bought a new position in shares of GlobalFoundries in the 4th quarter worth $6,984,000.

GlobalFoundries Company Profile

GlobalFoundries Inc NASDAQ: GFS is a global semiconductor manufacturer that provides contract chip production and related services to technology companies. Unlike a fabless semiconductor company, GlobalFoundries operates its own fabrication facilities and manufactures chips designed by other companies across a range of end markets.

The company specializes in differentiated semiconductor technologies, including radio-frequency and connectivity solutions, embedded memory, power management, silicon photonics, gallium nitride and other specialty processes.

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