GlobalFoundries (NASDAQ:GFS) Shares Gap Down Following Insider Selling

GlobalFoundries Inc. (NASDAQ:GFS)’s share price gapped down before the market opened on Friday after an insider sold shares in the company. The stock had previously closed at $86.12, but opened at $81.69. GlobalFoundries shares last traded at $79.9450, with a volume of 692,717 shares trading hands.

Specifically, insider Michael James Hogan sold 2,800 shares of the business’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $83.53, for a total transaction of $233,884.00. Following the sale, the insider owned 3,745 shares of the company’s stock, valued at $312,819.85. The trade was a 42.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samak L. Azar sold 335 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $83.35, for a total value of $27,922.25. Following the completion of the transaction, the insider directly owned 13,819 shares of the company’s stock, valued at $1,151,813.65. The trade was a 2.37% 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.

Analyst Ratings Changes

Several analysts have weighed in on the company. Evercore reissued an “outperform” rating and issued a $85.00 target price on shares of GlobalFoundries in a report on Tuesday, May 19th. Robert W. Baird set a $100.00 price target on shares of GlobalFoundries in a report on Wednesday, May 6th. The Goldman Sachs Group restated a “neutral” rating and set a $70.00 price objective on shares of GlobalFoundries in a research report on Tuesday, May 5th. Arete Research set a $95.00 target price on GlobalFoundries in a report on Wednesday, June 10th. Finally, JPMorgan Chase & Co. raised their price target on GlobalFoundries from $45.00 to $70.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Nine research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $73.29.

GlobalFoundries Trading Down 7.2%

The business’s fifty day moving average price is $74.83 and its 200 day moving average price is $54.10. 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 firm has a market capitalization of $43.85 billion, a PE ratio of 57.49, a P/E/G ratio of 2.82 and a beta of 1.77.

GlobalFoundries (NASDAQ:GFS) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. GlobalFoundries had a net margin of 11.40% and a return on equity of 6.85%. The business had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the prior year, the firm posted $0.34 earnings per share. The company’s quarterly revenue was up 3.1% compared to the same quarter last year. GlobalFoundries has set its Q2 2026 guidance at 0.250-0.350 EPS. As a group, analysts expect that GlobalFoundries Inc. will post 1.38 EPS for the current fiscal year.

GlobalFoundries Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Wednesday, June 24th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Wednesday, June 24th. GlobalFoundries’s dividend payout ratio is currently 34.53%.

Institutional Investors Weigh In On GlobalFoundries

Several hedge funds have recently made changes to their positions in GFS. Rafferty Asset Management LLC grew its holdings in GlobalFoundries by 18.4% in the third quarter. Rafferty Asset Management LLC now owns 372,122 shares of the company’s stock valued at $13,337,000 after purchasing an additional 57,774 shares during the period. Aster Capital Management DIFC Ltd raised its stake in GlobalFoundries by 844.7% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 62,593 shares of the company’s stock worth $2,186,000 after purchasing an additional 55,967 shares during the period. AXQ Capital LP boosted its holdings in shares of GlobalFoundries by 438.9% in the 4th quarter. AXQ Capital LP now owns 49,617 shares of the company’s stock valued at $1,733,000 after purchasing an additional 40,410 shares during the last quarter. First Trust Advisors LP boosted its holdings in shares of GlobalFoundries by 15.2% in the 3rd quarter. First Trust Advisors LP now owns 2,659,454 shares of the company’s stock valued at $95,315,000 after purchasing an additional 350,743 shares during the last quarter. Finally, UBS Group AG grew its stake in shares of GlobalFoundries by 136.7% during the 4th quarter. UBS Group AG now owns 1,809,232 shares of the company’s stock valued at $63,178,000 after buying an additional 1,044,755 shares during the period.

About GlobalFoundries

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.