GlobalFoundries (NASDAQ:GFS) Stock Jumps 5.6% – Here’s Why

GlobalFoundries Inc. (NASDAQ:GFS) traded up 5.6% during trading on Wednesday. The company traded as high as $49.80 and last traded at $49.3370. 1,953,526 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 4,273,555 shares. The stock had previously closed at $46.70.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on GFS. Stifel Nicolaus began coverage on GlobalFoundries in a report on Tuesday, September 1st. They issued a “buy” rating and a $60.00 target price for the company. Morgan Stanley reiterated a “negative” rating and issued a $60.00 target price on shares of GlobalFoundries in a report on Thursday, August 6th. UBS Group cut their price objective on shares of GlobalFoundries from $61.00 to $55.00 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. Zacks Research downgraded GlobalFoundries from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Finally, Deutsche Bank Aktiengesellschaft set a $75.00 target price on GlobalFoundries in a research note on Monday, August 10th. Eight investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $74.63.

GlobalFoundries Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.48 and a quick ratio of 1.74. The firm has a fifty day moving average of $47.70 and a 200 day moving average of $59.66. The stock has a market capitalization of $27.12 billion, a price-to-earnings ratio of 38.39, a price-to-earnings-growth ratio of 1.53 and a beta of 1.77.

GlobalFoundries (NASDAQ:GFS) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.43 by $0.03. GlobalFoundries had a return on equity of 6.69% and a net margin of 10.36%. The company had revenue of $1.79 billion during the quarter, compared to analysts’ expectations of $1.77 billion. During the same quarter in the prior year, the firm posted $0.42 EPS. GlobalFoundries’s quarterly revenue was up 5.8% compared to the same quarter last year. GlobalFoundries has set its Q3 2026 guidance at 0.460-0.560 EPS. On average, sell-side analysts anticipate that GlobalFoundries Inc. will post 1.48 earnings per share for the current fiscal year.

Insider Transactions at GlobalFoundries

In other GlobalFoundries news, Director Glenda Dorchak sold 4,000 shares of the company’s stock in a transaction on 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. This represents a 21.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Pradheepa Raman sold 6,760 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $51.12, for a total transaction of $345,571.20. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,590 shares of company stock worth $859,087 over the last 90 days.

Hedge Funds Weigh In On GlobalFoundries

A number of hedge funds have recently modified their holdings of GFS. Bessemer Group Inc. increased its position in GlobalFoundries by 8,275,141.2% during the first quarter. Bessemer Group Inc. now owns 2,813,582 shares of the company’s stock worth $125,147,000 after buying an additional 2,813,548 shares during the period. Dimensional Fund Advisors LP grew its position in GlobalFoundries by 2.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,340,385 shares of the company’s stock worth $59,571,000 after purchasing an additional 31,590 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of GlobalFoundries by 106.1% during the first quarter. Bank of America Corp DE now owns 875,361 shares of the company’s stock worth $38,936,000 after buying an additional 450,722 shares during the period. Healthcare of Ontario Pension Plan Trust Fund increased its position in GlobalFoundries by 322.8% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 715,000 shares of the company’s stock valued at $31,803,000 after acquiring an additional 545,900 shares during the period. Finally, Atreides Management LP purchased a new stake in GlobalFoundries during the 1st quarter valued at approximately $21,110,000.

GlobalFoundries Company Profile

GlobalFoundries Inc is a semiconductor contract manufacturer that produces chips for customers without owning their own fabrication facilities. The company operates as a pure-play foundry, manufacturing semiconductors based on customers’ designs and supporting them through process development, wafer fabrication, packaging, and related services.

Its technology portfolio focuses on specialized semiconductor platforms rather than the most advanced leading-edge logic nodes. Products and services include radio-frequency technologies, analog and mixed-signal solutions, power management, embedded memory, silicon photonics, and automotive and industrial semiconductor platforms.