GlobalFoundries (NASDAQ:GFS) Shares Up 5.6% – Here’s What Happened

GlobalFoundries Inc. (NASDAQ:GFS) shares shot up 5.6% on Wednesday. The company traded as high as $49.80 and last traded at $49.3370. 1,953,526 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 4,273,555 shares. The stock had previously closed at $46.70.

Analysts Set New Price Targets

GFS has been the subject of several research analyst reports. Robert W. Baird set a $140.00 price objective on GlobalFoundries in a research report on Thursday, August 6th. Jefferies Financial Group set a $60.00 price objective on GlobalFoundries in a research note on Wednesday, August 5th. TD Cowen decreased their price objective on shares of GlobalFoundries from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Zacks Research downgraded shares of GlobalFoundries from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of GlobalFoundries in a research note on Wednesday, August 26th. Eight investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $74.63.

GlobalFoundries Price Performance

The company has a market capitalization of $27.12 billion, a PE ratio of 38.39, a PEG ratio of 1.53 and a beta of 1.77. The company has a current ratio of 2.48, a quick ratio of 1.74 and a debt-to-equity ratio of 0.13. The company’s 50 day moving average price is $47.70 and its 200-day moving average price is $59.66.

GlobalFoundries (NASDAQ:GFS) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 EPS for the quarter, topping the consensus estimate of $0.43 by $0.03. The company had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.77 billion. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%. The firm’s revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.42 earnings per share. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. On average, sell-side analysts forecast that GlobalFoundries Inc. will post 1.48 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Glenda Dorchak sold 4,000 shares of the company’s stock in a transaction on Monday, July 20th. The shares were sold at an average price of $58.22, for a total value of $232,880.00. Following the completion of the transaction, the director directly owned 14,867 shares in the company, valued at approximately $865,556.74. This represents a 21.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pradheepa Raman sold 2,145 shares of the stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $48.83, for a total value of $104,740.35. Following the completion of the transaction, the insider directly owned 2,145 shares of the company’s stock, valued at $104,740.35. This represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 16,590 shares of company stock valued at $859,087 in the last ninety days.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Bessemer Group Inc. raised its position in shares of GlobalFoundries by 8,275,141.2% during 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. Dimensional Fund Advisors LP raised its stake in GlobalFoundries by 2.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,340,385 shares of the company’s stock worth $59,571,000 after acquiring an additional 31,590 shares during the period. Bank of America Corp DE lifted 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 worth $38,936,000 after purchasing an additional 450,722 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund increased its position in GlobalFoundries by 322.8% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 715,000 shares of the company’s stock worth $31,803,000 after buying an additional 545,900 shares during the period. Finally, Atreides Management LP acquired a new position in shares of GlobalFoundries during the first quarter valued at $21,110,000.

GlobalFoundries Company Profile

GlobalFoundries Inc is a semiconductor contract manufacturer that produces chips for customers without owning their own fabrication facilities. The company operates as a pure-play foundry, manufacturing semiconductors based on customers’ designs and supporting them through process development, wafer fabrication, packaging, and related services.

Its technology portfolio focuses on specialized semiconductor platforms rather than the most advanced leading-edge logic nodes. Products and services include radio-frequency technologies, analog and mixed-signal solutions, power management, embedded memory, silicon photonics, and automotive and industrial semiconductor platforms.