GlobalFoundries (NASDAQ:GFS) Rating Lowered to Hold at Zacks Research

GlobalFoundries (NASDAQ:GFS) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday,Zacks.com reports.

A number of other brokerages also recently issued reports on GFS. Cantor Fitzgerald upgraded shares of GlobalFoundries from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $50.00 to $80.00 in a research report on Monday, May 4th. Morgan Stanley set a $57.00 price objective on shares of GlobalFoundries in a research report on Monday. Citigroup lifted their target price on shares of GlobalFoundries from $49.00 to $70.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Jefferies Financial Group set a $60.00 target price on shares of GlobalFoundries in a report on Wednesday. Finally, Needham & Company LLC upped their price target on shares of GlobalFoundries from $55.00 to $80.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Eight research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, GlobalFoundries presently has an average rating of “Hold” and an average price target of $73.81.

GlobalFoundries Trading Down 4.9%

Shares of GFS stock opened at $49.46 on Tuesday. GlobalFoundries has a 1-year low of $31.51 and a 1-year high of $92.55. The company has a current ratio of 2.59, a quick ratio of 1.87 and a debt-to-equity ratio of 0.13. The stock has a market cap of $27.14 billion, a price-to-earnings ratio of 35.58, a PEG ratio of 1.84 and a beta of 1.80. The stock has a 50-day moving average of $70.24 and a 200-day moving average of $58.78.

GlobalFoundries (NASDAQ:GFS) last posted its quarterly earnings data 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 6.85% and a net margin of 11.40%.The company had revenue of $1.79 billion for the quarter, compared to analyst estimates of $1.77 billion. During the same period in the previous year, the firm earned $0.42 earnings per share. The firm’s quarterly revenue was up 5.8% on a year-over-year basis. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. On average, equities research analysts forecast that GlobalFoundries will post 1.38 earnings per share for the current year.

Insider Activity

In other GlobalFoundries news, insider Samak L. Azar sold 335 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $77.36, for a total value of $25,915.60. Following the transaction, the insider owned 13,149 shares in the company, valued at approximately $1,017,206.64. This represents a 2.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 500 shares of the firm’s stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $70.90, for a total value of $35,450.00. Following the completion of the sale, the insider directly owned 795 shares of the company’s stock, valued at $56,365.50. This trade represents a 38.61% 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. Insiders sold a total of 18,950 shares of company stock worth $1,375,905 in the last three months.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Bessemer Group Inc. raised its holdings in shares of GlobalFoundries by 8,275,141.2% in the 1st quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company’s stock worth $125,147,000 after acquiring an additional 2,813,548 shares during the last quarter. HRT Financial LP bought a new stake in GlobalFoundries during the fourth quarter worth $62,996,000. AQR Capital Management LLC raised its position in GlobalFoundries by 168.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,607,792 shares of the company’s stock valued at $93,463,000 after buying an additional 1,635,338 shares during the last quarter. Marshall Wace LLP lifted its stake in GlobalFoundries by 126.0% during the 4th quarter. Marshall Wace LLP now owns 2,382,003 shares of the company’s stock valued at $83,180,000 after acquiring an additional 1,328,129 shares in the last quarter. Finally, UBS Group AG boosted its holdings in GlobalFoundries by 136.7% during the 4th quarter. UBS Group AG now owns 1,809,232 shares of the company’s stock worth $63,178,000 after acquiring an additional 1,044,755 shares during the last quarter.

Trending Headlines about GlobalFoundries

Here are the key news stories impacting GlobalFoundries this week:

• Positive Sentiment: GlobalFoundries reported second-quarter earnings of $0.46 per share versus the $0.43 consensus estimate, while revenue of $1.79 billion exceeded expectations of $1.77 billion and increased 5.8% year over year. GlobalFoundries tops second quarter estimates on AI chip demand
• Positive Sentiment: Management cited growing demand for chips used in data centers, supported by artificial-intelligence infrastructure, as a key contributor to the quarter’s performance. The company indicated that its AI data-center opportunity remains in the “early innings,” suggesting potential for longer-term growth. GlobalFoundries says AI data center business is still in the early innings
• Positive Sentiment: GlobalFoundries declared a quarterly dividend of $0.12 per share, payable October 9 to shareholders of record September 23. The payment implies a $0.48 annualized dividend and an approximately 1% yield.
• Neutral Sentiment: Third-quarter guidance calls for earnings of $0.46 to $0.56 per share and revenue of approximately $1.9 billion. Revenue is broadly in line with expectations, while the EPS range brackets the $0.47 consensus estimate rather than decisively exceeding it. GlobalFoundries Reports Second Quarter 2026 Financial Results
• Negative Sentiment: The stock’s decline suggests investors may have expected a stronger outlook after prior optimism surrounding AI infrastructure and silicon photonics. A solid quarterly beat may therefore have been insufficient to justify the valuation or elevated expectations.
• Negative Sentiment: Reported insider activity was heavily skewed toward selling over the past six months—35 sales versus one purchase—which may add to investor caution, although such transactions do not necessarily reflect management’s view of the company.

About GlobalFoundries

GlobalFoundries, Inc (NASDAQ: GFS) is a leading contract semiconductor manufacturer that provides wafer fabrication and related services to semiconductor companies and systems manufacturers. The company operates as a pure-play foundry, producing integrated circuits across a range of process technologies for customers in markets such as automotive, communications, consumer electronics, industrial, and aerospace. Its service offering spans process development, manufacturing, test and packaging support, and design enablement including process design kits (PDKs) and intellectual property (IP) libraries to help customers bring designs to production.

GlobalFoundries focuses on a portfolio of differentiated and specialty process nodes, offering technologies for radio-frequency (RF) and wireless, analog and mixed-signal, power management, embedded non-volatile memory, and silicon-on-insulator (SOI) process families.