GlobalFoundries (NASDAQ:GFS) Trading Down 5% – What’s Next?

GlobalFoundries Inc. (NASDAQ:GFS)’s stock price was down 5% during mid-day trading on Wednesday . The company traded as low as $38.29 and last traded at $38.69. Approximately 757,777 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 1,543,511 shares. The stock had previously closed at $40.72.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Cantor Fitzgerald dropped their price objective on shares of GlobalFoundries from $55.00 to $40.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 8th. Wedbush reissued an “outperform” rating and issued a $65.00 target price on shares of GlobalFoundries in a research report on Wednesday, August 7th. Morgan Stanley lowered GlobalFoundries from an “overweight” rating to an “equal weight” rating and cut their price target for the stock from $53.00 to $43.00 in a research report on Monday. Needham & Company LLC restated a “hold” rating on shares of GlobalFoundries in a research report on Wednesday, August 7th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of GlobalFoundries from $60.00 to $55.00 and set a “buy” rating for the company in a research report on Wednesday, August 7th. Eight equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $54.85.

GlobalFoundries Stock Up 0.4 %

The company has a debt-to-equity ratio of 0.19, a current ratio of 2.22 and a quick ratio of 1.59. The firm’s 50-day moving average price is $40.81 and its 200 day moving average price is $46.73. The firm has a market capitalization of $20.23 billion, a price-to-earnings ratio of 25.08, a price-to-earnings-growth ratio of 6.16 and a beta of 1.52.

GlobalFoundries (NASDAQ:GFS) last issued its quarterly earnings data on Tuesday, August 6th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.10. The business had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.61 billion. GlobalFoundries had a return on equity of 7.75% and a net margin of 11.82%. The business’s revenue was down 11.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.45 earnings per share. Sell-side analysts expect that GlobalFoundries Inc. will post 1.09 EPS for the current year.

Institutional Investors Weigh In On GlobalFoundries

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Sumitomo Mitsui Trust Holdings Inc. boosted its position in GlobalFoundries by 17.7% during the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 83,162 shares of the company’s stock worth $4,334,000 after acquiring an additional 12,487 shares during the last quarter. Norden Group LLC acquired a new position in GlobalFoundries in the first quarter valued at $400,000. Principal Financial Group Inc. lifted its position in GlobalFoundries by 32.5% during the first quarter. Principal Financial Group Inc. now owns 6,530 shares of the company’s stock worth $340,000 after buying an additional 1,603 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its stake in GlobalFoundries by 7.1% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,028,773 shares of the company’s stock worth $59,018,000 after buying an additional 68,626 shares during the last quarter. Finally, Daiwa Securities Group Inc. grew its holdings in GlobalFoundries by 3.6% in the 1st quarter. Daiwa Securities Group Inc. now owns 61,324 shares of the company’s stock valued at $3,195,000 after buying an additional 2,159 shares during the period.

About GlobalFoundries

GlobalFoundries Inc, a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units.