GlobalFoundries (NASDAQ:GFS) Shares Up 6% – Time to Buy?

GlobalFoundries Inc. (NASDAQ:GFS)’s stock price rose 6% on Thursday. The company traded as high as $49.93 and last traded at $50.9760. Approximately 2,139,826 shares changed hands during trading, a decline of 49% from the average session volume of 4,216,139 shares. The stock had previously closed at $48.07.

Trending Headlines about GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries agreed to a multiyear, approximately $2 billion deal with TSMC to manufacture silicon interposers at its Malta, New York, facility for TSMC’s CoWoS advanced AI-packaging technology. The agreement gives GFS exposure to rapidly growing artificial-intelligence and high-performance-computing demand without requiring it to manufacture leading-edge GPUs. GlobalFoundries reaches agreement to establish U.S.-based supply of silicon interposers for advanced AI packaging
• Positive Sentiment: GF also unveiled its FDX Fusion roadmap, a next-generation FD-SOI platform designed for “physical AI” applications. Management said the technology delivers single-digit-nanometer digital performance optimized for edge and real-world devices, potentially strengthening the company’s specialty-chip positioning. GF unveils roadmap to deliver the world’s most advanced FD-SOI platform for Physical AI
• Positive Sentiment: GlobalFoundries entered a multiyear manufacturing partnership with quantum-computing company Xanadu, adding another potential growth avenue in photonic and quantum hardware. Quantum firm Xanadu partners with GlobalFoundries for photonic component development

Analysts Set New Price Targets

GFS has been the subject of a number of recent research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of GlobalFoundries in a research report on Wednesday, August 26th. Zacks Research lowered shares of GlobalFoundries from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft set a $75.00 target price on shares of GlobalFoundries in a research note on Monday, August 10th. Morgan Stanley reiterated a “negative” rating and issued a $60.00 target price on shares of GlobalFoundries in a report on Thursday, August 6th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of GlobalFoundries in a research note on Tuesday, September 8th. 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 company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $74.63.

GlobalFoundries Price Performance

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 fifty day moving average is $47.84 and its two-hundred day moving average is $59.54. The stock has a market cap of $26.47 billion, a price-to-earnings ratio of 37.69, a P/E/G ratio of 1.57 and a beta of 1.77.

GlobalFoundries (NASDAQ:GFS) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 EPS for the quarter, topping 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 for the quarter, compared to analysts’ expectations of $1.77 billion. During the same period in the prior year, the firm earned $0.42 earnings per share. The firm’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. As a group, research analysts predict that GlobalFoundries Inc. will post 1.48 earnings per share for the current year.

GlobalFoundries Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Wednesday, September 23rd were paid a dividend of $0.12 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $0.48 annualized dividend and a yield of 1.0%. GlobalFoundries’s dividend payout ratio is presently 37.50%.

Insider Transactions at GlobalFoundries

In other GlobalFoundries news, Director Glenda Dorchak sold 4,000 shares of the business’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $58.22, for a total transaction of $232,880.00. Following the sale, the director directly owned 14,867 shares in the company, valued at $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 is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pradheepa Raman sold 6,760 shares of the 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. Insiders have sold a total of 16,590 shares of company stock valued at $859,087 over the last 90 days.

Institutional Investors Weigh In On GlobalFoundries

Several large investors have recently added to or reduced their stakes in the business. Parallel Advisors LLC boosted its position in GlobalFoundries by 39.8% in the 1st quarter. Parallel Advisors LLC now owns 832 shares of the company’s stock valued at $37,000 after buying an additional 237 shares during the period. Global Assets Advisory LLC purchased a new stake in shares of GlobalFoundries during the first quarter worth $53,000. FNY Investment Advisers LLC acquired a new stake in shares of GlobalFoundries in the second quarter valued at $60,000. Western Wealth Management LLC acquired a new stake in shares of GlobalFoundries in the first quarter valued at $68,000. Finally, PNC Financial Services Group Inc. boosted its holdings in GlobalFoundries by 8.6% in the first quarter. PNC Financial Services Group Inc. now owns 1,954 shares of the company’s stock valued at $87,000 after purchasing an additional 154 shares during the period.

About GlobalFoundries

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.