GlobalFoundries Target of Unusually High Options Trading (NASDAQ:GFS)

GlobalFoundries Inc. (NASDAQ:GFS) was the target of unusually large options trading activity on Tuesday. Traders bought 16,469 call options on the stock. This is an increase of approximately 127% compared to the typical daily volume of 7,243 call options.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on GFS. Needham & Company LLC lifted their price objective on GlobalFoundries from $55.00 to $80.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. Robert W. Baird set a $100.00 price target on GlobalFoundries in a report on Wednesday, May 6th. UBS Group lifted their price target on GlobalFoundries from $65.00 to $77.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $70.00 price target on shares of GlobalFoundries in a research note on Tuesday, May 5th. Finally, Arete Research set a $95.00 price objective on shares of GlobalFoundries in a research report on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, GlobalFoundries presently has an average rating of “Hold” and a consensus target price of $74.62.

GlobalFoundries Stock Performance

GFS traded up $2.62 during mid-day trading on Tuesday, reaching $59.43. 3,441,728 shares of the company traded hands, compared to its average volume of 4,283,552. The stock has a market capitalization of $32.61 billion, a P/E ratio of 43.00, a P/E/G ratio of 2.03 and a beta of 1.76. The company has a quick ratio of 1.87, a current ratio of 2.59 and a debt-to-equity ratio of 0.13. The company’s fifty day moving average price is $76.08 and its 200-day moving average price is $57.64. 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 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 return on equity of 6.85% and a net margin of 11.40%.The firm had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period last year, the business posted $0.34 EPS. The company’s revenue for the quarter was up 3.1% on a year-over-year basis. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. On average, sell-side analysts expect that GlobalFoundries will post 1.38 EPS for the current year.

GlobalFoundries Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 14th. Shareholders of record on Wednesday, June 24th were given a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, June 24th. GlobalFoundries’s dividend payout ratio (DPR) is presently 34.53%.

Insider Activity

In other news, insider Samak L. Azar sold 335 shares of GlobalFoundries stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $77.36, for a total transaction of $25,915.60. Following the completion of the transaction, the insider directly owned 13,149 shares in the company, valued at approximately $1,017,206.64. This trade represents a 2.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael James Hogan sold 500 shares of the business’s stock in a transaction that occurred on Thursday, July 9th. The stock was 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 in the company, valued at approximately $56,365.50. This represents a 38.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,580 shares of company stock worth $1,379,510 in the last three months.

Institutional Investors Weigh In On GlobalFoundries

A number of large investors have recently made changes to their positions in the company. Royal Bank of Canada boosted its holdings in shares of GlobalFoundries by 4.4% in the first quarter. Royal Bank of Canada now owns 15,583 shares of the company’s stock worth $575,000 after buying an additional 660 shares during the last quarter. AQR Capital Management LLC increased its holdings in GlobalFoundries by 77.6% during the first quarter. AQR Capital Management LLC now owns 102,048 shares of the company’s stock valued at $3,679,000 after buying an additional 44,599 shares during the last quarter. Jones Financial Companies Lllp raised its position in GlobalFoundries by 7,120.1% in the first quarter. Jones Financial Companies Lllp now owns 12,202 shares of the company’s stock worth $450,000 after acquiring an additional 12,033 shares during the period. American Century Companies Inc. raised its position in GlobalFoundries by 3.4% in the second quarter. American Century Companies Inc. now owns 27,606 shares of the company’s stock worth $1,055,000 after acquiring an additional 903 shares during the period. Finally, M&T Bank Corp purchased a new position in shares of GlobalFoundries during the 2nd quarter worth $269,000.

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.