GlobalFoundries (NASDAQ:GFS) Shares Gap Down – Should You Sell?

GlobalFoundries Inc. (NASDAQ:GFS) shares gapped down prior to trading on Friday . The stock had previously closed at $86.12, but opened at $81.69. GlobalFoundries shares last traded at $79.9450, with a volume of 692,717 shares trading hands.

Analyst Ratings Changes

GFS has been the subject of several research analyst reports. Morgan Stanley lifted their target price on shares of GlobalFoundries from $58.00 to $65.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Robert W. Baird set a $100.00 price objective on shares of GlobalFoundries in a research report on Wednesday, May 6th. Arete Research set a $95.00 price objective on GlobalFoundries in a report on Wednesday, June 10th. Needham & Company LLC upped their target price on GlobalFoundries from $55.00 to $80.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Finally, The Goldman Sachs Group reissued a “neutral” rating and set a $70.00 price target on shares of GlobalFoundries in a report on Tuesday, May 5th. Nine investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, GlobalFoundries presently has an average rating of “Hold” and an average price target of $73.29.

GlobalFoundries Stock Down 7.0%

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 firm has a market cap of $43.93 billion, a price-to-earnings ratio of 57.55, a PEG ratio of 2.96 and a beta of 1.77. The firm’s 50 day simple moving average is $74.19 and its two-hundred day simple moving average is $53.91.

GlobalFoundries (NASDAQ:GFS) last announced its earnings results on Tuesday, May 5th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The firm had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same quarter in the prior year, the business posted $0.34 EPS. The business’s revenue was up 3.1% compared to the same quarter last year. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. On average, equities analysts forecast that GlobalFoundries Inc. will post 1.38 EPS for the current year.

GlobalFoundries Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Wednesday, June 24th will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Wednesday, June 24th. This represents a $0.48 dividend on an annualized basis and a yield of 0.6%. GlobalFoundries’s dividend payout ratio is currently 34.53%.

Insider Buying and Selling at GlobalFoundries

In related news, insider Samak L. Azar sold 500 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $74.82, for a total value of $37,410.00. Following the transaction, the insider owned 15,494 shares in the company, valued at approximately $1,159,261.08. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,800 shares of the business’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $82.88, for a total value of $232,064.00. Following the completion of the transaction, the insider directly owned 9,645 shares of the company’s stock, valued at approximately $799,377.60. This trade represents a 22.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 21,675 shares of company stock valued at $1,387,882 in the last three months.

Hedge Funds Weigh In On GlobalFoundries

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

GlobalFoundries Company Profile

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.