GlobalFoundries (NASDAQ:GFS) Shares Gap Down – Here’s Why

GlobalFoundries Inc. (NASDAQ:GFS)’s share price gapped down before the market opened on Monday . The stock had previously closed at $40.40, but opened at $39.02. GlobalFoundries shares last traded at $40.44, with a volume of 146,583 shares.

Analysts Set New Price Targets

A number of research firms have recently issued reports on GFS. Deutsche Bank Aktiengesellschaft cut their target price on shares of GlobalFoundries from $60.00 to $55.00 and set a “buy” rating for the company in a research note on Wednesday, August 7th. TD Cowen cut their price objective on GlobalFoundries from $65.00 to $55.00 and set a “buy” rating for the company in a research report on Wednesday, August 7th. Cantor Fitzgerald decreased their target price on GlobalFoundries from $55.00 to $40.00 and set a “neutral” rating on the stock in a report on Tuesday, October 8th. Wedbush restated an “outperform” rating and issued a $65.00 target price on shares of GlobalFoundries in a research note on Wednesday, August 7th. Finally, Evercore ISI reduced their price target on shares of GlobalFoundries from $77.00 to $71.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 7th. Eight investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat, GlobalFoundries currently has a consensus rating of “Hold” and an average price target of $54.85.

GlobalFoundries Stock Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.59 and a current ratio of 2.22. The company has a market cap of $22.34 billion, a price-to-earnings ratio of 24.94, a PEG ratio of 6.35 and a beta of 1.52. The firm’s 50-day moving average price is $41.34 and its 200 day moving average price is $47.00.

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

Institutional Investors Weigh In On GlobalFoundries

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC bought a new stake in GlobalFoundries in the third quarter valued at approximately $34,000. Massmutual Trust Co. FSB ADV bought a new stake in shares of GlobalFoundries in the 2nd quarter valued at $59,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in GlobalFoundries during the 2nd quarter worth $65,000. CWM LLC lifted its holdings in GlobalFoundries by 38.6% during the second quarter. CWM LLC now owns 1,339 shares of the company’s stock worth $68,000 after acquiring an additional 373 shares in the last quarter. Finally, Lazard Asset Management LLC grew its stake in GlobalFoundries by 47.3% in the first quarter. Lazard Asset Management LLC now owns 2,446 shares of the company’s stock valued at $127,000 after acquiring an additional 786 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.