UBS Group Has Lowered Expectations for GlobalFoundries (NASDAQ:GFS) Stock Price

GlobalFoundries (NASDAQ:GFS) had its target price dropped by investment analysts at UBS Group from $48.00 to $43.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a “neutral” rating on the stock. UBS Group‘s price objective points to a potential upside of 18.38% from the stock’s previous close.

Other equities research analysts have also issued research reports about the stock. Weiss Ratings reissued a “hold (c)” rating on shares of GlobalFoundries in a report on Wednesday, August 26th. BNP Paribas Exane downgraded shares of GlobalFoundries from an “outperform” rating to a “neutral” rating and set a $51.00 target price for the company. in a research note on Monday, October 5th. Deutsche Bank Aktiengesellschaft set a $75.00 target price on shares of GlobalFoundries in a research report on Monday, August 10th. Wedbush decreased their price target on shares of GlobalFoundries from $72.00 to $45.00 and set a “neutral” rating on the stock in a research note on Thursday. Finally, Needham & Company LLC lowered their price target on shares of GlobalFoundries from $80.00 to $55.00 and set a “buy” rating for the company in a report on Wednesday. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, GlobalFoundries has a consensus rating of “Hold” and an average target price of $67.79.

GlobalFoundries Price Performance

GlobalFoundries stock opened at $36.33 on Thursday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.74 and a current ratio of 2.48. The firm has a market cap of $19.93 billion, a P/E ratio of 103.79, a P/E/G ratio of 1.28 and a beta of 1.78. The business’s fifty day moving average is $45.99 and its two-hundred day moving average is $54.90. GlobalFoundries has a 52 week low of $32.02 and a 52 week high of $92.55.

GlobalFoundries (NASDAQ:GFS) last announced its earnings results on Wednesday, November 4th. The company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.02. GlobalFoundries had a return on equity of 7.18% and a net margin of 2.81%. The company had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.89 billion. During the same period last year, the company posted $0.44 earnings per share. The firm’s quarterly revenue was up 12.5% compared to the same quarter last year. Equities research analysts forecast that GlobalFoundries will post 1.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other GlobalFoundries news, insider Pradheepa Raman sold 6,760 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $51.12, for a total value of $345,571.20. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,590 shares of company stock valued at $620,877 in the last quarter.

Institutional Trading of GlobalFoundries

Several institutional investors and hedge funds have recently made changes to their positions in the business. PNC Financial Services Group Inc. boosted its position in shares of GlobalFoundries by 8.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 1,954 shares of the company’s stock worth $87,000 after purchasing an additional 154 shares during the last quarter. Parallel Advisors LLC grew its stake in shares of GlobalFoundries by 39.8% during the first quarter. Parallel Advisors LLC now owns 832 shares of the company’s stock worth $37,000 after purchasing an additional 237 shares during the period. Signaturefd LLC grew its stake in shares of GlobalFoundries by 22.3% during the third quarter. Signaturefd LLC now owns 1,370 shares of the company’s stock worth $66,000 after purchasing an additional 250 shares during the period. Commonwealth Equity Services LLC increased its holdings in GlobalFoundries by 4.7% in the third quarter. Commonwealth Equity Services LLC now owns 5,751 shares of the company’s stock valued at $276,000 after purchasing an additional 258 shares during the last quarter. Finally, California State Teachers Retirement System increased its holdings in GlobalFoundries by 5.3% in the first quarter. California State Teachers Retirement System now owns 6,735 shares of the company’s stock valued at $300,000 after purchasing an additional 340 shares during the last quarter.

Key Headlines Impacting GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries reported Q3 earnings of $0.53 per share, above the $0.51 consensus, and revenue of $1.90 billion, slightly ahead of estimates and up 12.5% year over year. Recent coverage also highlighted a record Q3 margin and commitments supporting future growth. GlobalFoundries Q3 earnings and revenues beat estimates GlobalFoundries posts record Q3 margin Margins improve as GlobalFoundries secures commitments for future growth
• Neutral Sentiment: Although Susquehanna lowered its target from $125 to $110, it kept a positive rating; TD Cowen cut its target from $75 to $60 but retained a buy rating. These recommendations indicate continued optimism from some analysts, despite lower valuations. Susquehanna lowers GlobalFoundries price target TD Cowen lowers GlobalFoundries price target
• Negative Sentiment: Several firms reduced their price targets, pointing to weaker valuation expectations. Wedbush cut its target from $72 to $45, Citigroup from $58 to $46, JPMorgan from $57 to $50, and Needham from $80 to $55. The breadth of the revisions is likely weighing on GFS even after the earnings beat; Wedbush, Citi, and JPMorgan have neutral ratings, while Needham remains bullish. Wedbush cuts GlobalFoundries valuation target Citigroup lowers GlobalFoundries stock price target Wedbush lowers GlobalFoundries price target

GlobalFoundries Company Profile

GlobalFoundries Inc (NASDAQ:GFS) is a semiconductor manufacturer that operates as a contract foundry, producing chips designed by other companies. The company provides wafer fabrication and related services for customers in the automotive, communications infrastructure, aerospace and defense, industrial, and consumer electronics markets.

GlobalFoundries specializes in differentiated semiconductor technologies rather than competing primarily in the most advanced logic-processing nodes. Its offerings include radio-frequency and silicon-on-insulator technologies, embedded memory, power-management solutions, high-voltage processes, silicon photonics, and other specialty platforms used in connectivity, sensing, automotive electronics, and edge-computing applications.

The company was established in 2009 through the separation of Advanced Micro Devices’ manufacturing operations, with investment from the Abu Dhabi-based Advanced Technology Investment Company.