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

GlobalFoundries Inc. (NASDAQ:GFS)’s share price was down 5% 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.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft decreased their price target on GlobalFoundries from $60.00 to $55.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. Wedbush reaffirmed an “outperform” rating and issued a $65.00 price target on shares of GlobalFoundries in a report on Wednesday, August 7th. TD Cowen decreased their price objective on shares of GlobalFoundries from $65.00 to $55.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. Needham & Company LLC reiterated a “hold” rating on shares of GlobalFoundries in a research report on Wednesday, August 7th. Finally, Morgan Stanley cut shares of GlobalFoundries from an “overweight” rating to an “equal weight” rating and lowered their price objective for the company from $53.00 to $43.00 in a research report on Monday. Eight equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $54.85.

GlobalFoundries Stock Performance

The company’s 50 day moving average is $41.12 and its 200-day moving average is $46.87. The company has a market capitalization of $21.45 billion, a P/E ratio of 25.14, a price-to-earnings-growth ratio of 6.35 and a beta of 1.52. The company has a current ratio of 2.22, a quick ratio of 1.59 and a debt-to-equity ratio of 0.19.

GlobalFoundries (NASDAQ:GFS) last announced its quarterly earnings results on Tuesday, August 6th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.28 by $0.10. GlobalFoundries had a net margin of 11.82% and a return on equity of 7.75%. The company had revenue of $1.63 billion for the quarter, compared to analysts’ expectations of $1.61 billion. During the same quarter in the previous year, the business posted $0.45 EPS. GlobalFoundries’s revenue was down 11.5% compared to the same quarter last year. Equities analysts anticipate that GlobalFoundries Inc. will post 1.09 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in GFS. Ghisallo Capital Management LLC lifted its holdings in shares of GlobalFoundries by 200.0% during the 2nd quarter. Ghisallo Capital Management LLC now owns 300,000 shares of the company’s stock valued at $15,168,000 after buying an additional 200,000 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of 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 purchasing an additional 68,626 shares during the period. Lazard Asset Management LLC boosted its holdings in shares of GlobalFoundries by 47.3% in the first quarter. Lazard Asset Management LLC now owns 2,446 shares of the company’s stock worth $127,000 after buying an additional 786 shares during the last quarter. Global X Japan Co. Ltd. grew its position in GlobalFoundries by 52.0% during the second quarter. Global X Japan Co. Ltd. now owns 63,646 shares of the company’s stock valued at $3,218,000 after buying an additional 21,765 shares during the period. Finally, Tidal Investments LLC raised its position in GlobalFoundries by 343.7% in the first quarter. Tidal Investments LLC now owns 94,320 shares of the company’s stock worth $4,915,000 after acquiring an additional 73,060 shares during the period.

GlobalFoundries Company Profile

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.