GlobalFoundries (NASDAQ:GFS) Downgraded by Zacks Research to “Hold”

Zacks Research downgraded shares of GlobalFoundries (NASDAQ:GFS) from a strong-buy rating to a hold rating in a research note published on Tuesday morning,Zacks.com reports.

A number of other equities analysts have also recently commented on GFS. The Goldman Sachs Group reiterated a “neutral” rating and issued a $70.00 target price on shares of GlobalFoundries in a report on Tuesday, May 5th. Citigroup increased their target price on shares of GlobalFoundries from $49.00 to $70.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Cantor Fitzgerald raised shares of GlobalFoundries from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $50.00 to $80.00 in a research note on Monday, May 4th. Loop Capital set a $80.00 price target on shares of GlobalFoundries in a report on Monday, May 4th. Finally, Evercore reissued an “outperform” rating and issued a $85.00 price objective on shares of GlobalFoundries in a research note on Tuesday, May 19th. Eight equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $73.81.

GlobalFoundries Stock Down 4.9%

GFS opened at $49.46 on Tuesday. The company has a market capitalization of $27.14 billion, a PE ratio of 35.58, a price-to-earnings-growth ratio of 1.84 and a beta of 1.80. The firm has a 50-day simple moving average of $70.24 and a two-hundred day simple moving average of $58.78. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13. GlobalFoundries has a 52 week low of $31.51 and a 52 week high of $92.55.

GlobalFoundries (NASDAQ:GFS) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.43 by $0.03. The business had revenue of $1.79 billion during the quarter, compared to analyst estimates of $1.77 billion. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. GlobalFoundries’s quarterly revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.42 earnings per share. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. Analysts forecast that GlobalFoundries will post 1.38 earnings per share for the current fiscal year.

GlobalFoundries Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 23rd will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Wednesday, September 23rd. This represents a $0.48 dividend on an annualized basis and a yield of 1.0%. GlobalFoundries’s payout ratio is 34.53%.

Insider Transactions at GlobalFoundries

In related news, Director Glenda Dorchak sold 4,000 shares of GlobalFoundries stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $58.22, for a total value of $232,880.00. Following the completion of the sale, the director directly owned 14,867 shares in the company, valued at $865,556.74. The trade was a 21.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 2,800 shares of the stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $82.88, for a total transaction of $232,064.00. Following the transaction, the insider owned 9,645 shares in the company, valued at approximately $799,377.60. The trade was a 22.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 18,950 shares of company stock valued at $1,375,905.

Hedge Funds Weigh In On GlobalFoundries

Large investors have recently bought and sold shares of the business. WealthCollab LLC increased its holdings in shares of GlobalFoundries by 674.7% in the 4th quarter. WealthCollab LLC now owns 705 shares of the company’s stock valued at $25,000 after acquiring an additional 614 shares during the period. Covestor Ltd grew its stake in GlobalFoundries by 57.6% in the fourth quarter. Covestor Ltd now owns 955 shares of the company’s stock valued at $33,000 after purchasing an additional 349 shares during the last quarter. Atlas Capital Advisors Inc. acquired a new stake in GlobalFoundries in the fourth quarter valued at approximately $35,000. Strategic Advocates LLC increased its position in shares of GlobalFoundries by 95.1% during the fourth quarter. Strategic Advocates LLC now owns 1,026 shares of the company’s stock worth $37,000 after purchasing an additional 500 shares in the last quarter. Finally, Parallel Advisors LLC boosted its position in shares of GlobalFoundries by 39.8% in the 1st quarter. Parallel Advisors LLC now owns 832 shares of the company’s stock worth $37,000 after purchasing an additional 237 shares in the last quarter.

Key GlobalFoundries News

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.

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.