GlobalFoundries (NASDAQ:GFS) Shares Gap Up – Still a Buy?

GlobalFoundries Inc. (NASDAQ:GFS) gapped up prior to trading on Tuesday . The stock had previously closed at $36.01, but opened at $41.95. GlobalFoundries shares last traded at $39.12, with a volume of 1,863,014 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Needham & Company LLC reissued a “hold” rating on shares of GlobalFoundries in a report on Wednesday. TD Cowen reduced their price objective on GlobalFoundries from $65.00 to $55.00 and set a “buy” rating on the stock in a research note on Wednesday, August 7th. Morgan Stanley downgraded shares of GlobalFoundries from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $53.00 to $43.00 in a report on Monday, October 28th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of GlobalFoundries from $55.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Cantor Fitzgerald restated a “neutral” rating and set a $40.00 price objective on shares of GlobalFoundries in a research report on Wednesday. Eight equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, GlobalFoundries currently has an average rating of “Hold” and an average price target of $50.46.

GlobalFoundries Stock Up 13.1 %

The company has a current ratio of 2.22, a quick ratio of 1.59 and a debt-to-equity ratio of 0.19. The company has a 50-day simple moving average of $40.35 and a 200 day simple moving average of $46.54. The company has a market cap of $25.82 billion, a P/E ratio of 31.83, a P/E/G ratio of 5.82 and a beta of 1.53.

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

Institutional Investors Weigh In On GlobalFoundries

Several hedge funds have recently modified their holdings of GFS. Marshall Wace LLP lifted its stake in shares of GlobalFoundries by 108.6% during the 2nd quarter. Marshall Wace LLP now owns 2,496,871 shares of the company’s stock worth $126,242,000 after purchasing an additional 1,299,687 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in GlobalFoundries by 13.5% in the second quarter. Dimensional Fund Advisors LP now owns 653,918 shares of the company’s stock worth $33,063,000 after purchasing an additional 77,581 shares in the last quarter. ProShare Advisors LLC lifted its position in shares of GlobalFoundries by 25.9% during the first quarter. ProShare Advisors LLC now owns 544,325 shares of the company’s stock valued at $28,365,000 after buying an additional 112,149 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in shares of GlobalFoundries by 267.7% in the 2nd quarter. Renaissance Technologies LLC now owns 354,049 shares of the company’s stock valued at $17,901,000 after buying an additional 257,749 shares in the last quarter. Finally, Ghisallo Capital Management LLC grew its position in shares of GlobalFoundries by 200.0% in the 2nd quarter. Ghisallo Capital Management LLC now owns 300,000 shares of the company’s stock worth $15,168,000 after buying an additional 200,000 shares during the last quarter.

About GlobalFoundries

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.