GlobalFoundries (NASDAQ:GFS) Stock Gets Price Target Cut from Citigroup

GlobalFoundries (NASDAQ:GFS) had its price target trimmed by Citigroup from $58.00 to $46.00 in a report released on Thursday morning,Benzinga reports. The firm currently has a neutral rating on the stock.

A number of other research analysts have also commented on GFS. Robert W. Baird set a $140.00 price objective on GlobalFoundries in a research report on Thursday, August 6th. Weiss Ratings restated a “hold (c)” rating on shares of GlobalFoundries in a report on Wednesday, August 26th. Morgan Stanley lowered their price target on GlobalFoundries from $60.00 to $56.00 and set an “equal weight” rating for the company in a report on Monday, November 2nd. Wedbush dropped their price objective on shares of GlobalFoundries from $72.00 to $45.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, BNP Paribas Exane cut GlobalFoundries from an “outperform” rating to a “neutral” rating and set a $51.00 target price on the stock. in a research note on Monday, October 5th. Eight equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $67.79.

GlobalFoundries Stock Performance

NASDAQ:GFS opened at $38.62 on Thursday. GlobalFoundries has a 1 year low of $32.02 and a 1 year high of $92.55. The firm has a 50 day moving average of $45.84 and a 200-day moving average of $54.88. The company has a current ratio of 2.58, a quick ratio of 1.74 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $21.19 billion, a P/E ratio of 110.34, a price-to-earnings-growth ratio of 1.27 and a beta of 1.78.

GlobalFoundries (NASDAQ:GFS) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.02. The business had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.89 billion. GlobalFoundries had a return on equity of 7.16% and a net margin of 2.81%. GlobalFoundries’s revenue for the quarter was up 12.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.44 EPS. As a group, sell-side analysts anticipate that GlobalFoundries will post 1.50 EPS for the current fiscal year.

GlobalFoundries Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 14th. Shareholders of record on Tuesday, December 22nd will be given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Tuesday, December 22nd. GlobalFoundries’s dividend payout ratio is presently 137.14%.

Insiders Place Their Bets

In other news, Director Ganesh Moorthy bought 2,500 shares of the company’s stock in a transaction dated Thursday, November 5th. The stock was bought at an average cost of $37.48 per share, for a total transaction of $93,700.00. Following the transaction, the director owned 5,500 shares of the company’s stock, valued at $206,140. This represents a 83.33% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Pradheepa Raman sold 6,760 shares of the business’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 transaction of $345,571.20. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 12,925 shares of company stock worth $633,881.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Diversified Trust Co lifted its stake in GlobalFoundries by 12.0% in the 3rd quarter. Diversified Trust Co now owns 10,323 shares of the company’s stock valued at $495,000 after purchasing an additional 1,105 shares during the last quarter. Aberdeen Group plc boosted its position in GlobalFoundries by 2,795.1% during the third quarter. Aberdeen Group plc now owns 85,956 shares of the company’s stock valued at $4,119,000 after acquiring an additional 82,987 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in GlobalFoundries during the third quarter worth approximately $354,000. Machina Capital S.A.S. grew its position in shares of GlobalFoundries by 36.4% during the 3rd quarter. Machina Capital S.A.S. now owns 27,755 shares of the company’s stock worth $1,330,000 after buying an additional 7,408 shares during the period. Finally, AlphaCore Capital LLC bought a new stake in GlobalFoundries in the third quarter valued at $1,497,000.

More GlobalFoundries News

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: A Seeking Alpha article highlights improving margins and commitments that could support future growth. Another report points to a record third-quarter margin, suggesting operational progress. Margins Improve As GlobalFoundries Secures Commitments For Future Growth GlobalFoundries stock: Company posts record Q3 margin
• Positive Sentiment: TD Cowen cut its target to $60 from $75 but kept a Buy rating, while Susquehanna lowered its target to $110 from $125 and retained a positive rating. TD Cowen price-target update Susquehanna price-target update
• Neutral Sentiment: UBS, JPMorgan, and Citi lowered their targets to $43, $50, and $46, respectively, and maintained Neutral ratings. Their targets still imply potential upside from the cited $38.62 share price, but the cuts signal reduced expectations. UBS rating update JPMorgan rating update Citi rating update
• Negative Sentiment: Wedbush made a particularly steep reduction, cutting its target to $45 from $72 and citing a lower valuation multiple. The broader wave of target cuts—including reductions from Citi, JPMorgan, UBS, and TD Cowen—could reinforce concerns about GFS’s near-term valuation and outlook. Wedbush cuts GlobalFoundries price target

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.