GlobalFoundries (NASDAQ:GFS) Sees Strong Trading Volume - Time to Buy?

GlobalFoundries Inc. (NASDAQ:GFS - Get Free Report) experienced a notable surge in trading volume on Tuesday, with 1,454,135 shares exchanging hands. This figure represents an 18% decrease from the previous day's trading volume, which was 1,770,172 shares. As of the last trade, the stock was valued at $39.94, an increase from its prior closing price of $37.74.

Recent Analyst Ratings

Several analysts have made significant updates regarding GlobalFoundries recently. On October 28th, Morgan Stanley downgraded GlobalFoundries from an "overweight" to an "equal weight" rating, adjusting their target price from $53.00 to $43.00. On November 6th, Needham & Company LLC maintained a "hold" rating, while Deutsche Bank reduced their target price from $55.00 to $50.00, maintaining a "buy" rating. That same day, Citigroup also cut their price target from $45.00 to $40.00, assigning a "neutral" rating. Additionally, Evercore ISI lowered their target price from $71.00 to $55.00 while issuing an "outperform" rating. Currently, nine analysts have rated the stock as a hold, while six have given it a buy rating. The average analyst rating is a "Hold," with a consensus target price of $50.21.

Stock Performance Overview

The fifty-day moving average for GlobalFoundries stock stands at $42.63, while the two-hundred day moving average is $42.49. The company boasts a market capitalization of approximately $22.09 billion, a price-to-earnings (PE) ratio of 29.90, and a price-to-earnings-growth (PEG) ratio of 8.23. The stock has a beta of 1.56. Other key financial indicators include a current ratio of 2.42, a quick ratio of 1.76, and a debt-to-equity ratio of 0.19.

On February 11th, GlobalFoundries reported their quarterly earnings, revealing an earnings per share (EPS) of $0.38, which fell short of the consensus estimate of $0.45 by $0.07. The company recorded a net margin of 10.95% and a return on equity of 6.87%. Analysts predict that GlobalFoundries will report an EPS of 1.22 for the current fiscal year.

Hedge Fund Activity

Recent activity among hedge funds shows growing interest in GlobalFoundries. Quantbot Technologies LP significantly increased its holdings in the company by 89.0% during the third quarter, now owning 73,762 shares valued at $2,969,000 after adding 34,731 shares. UBS Asset Management also ramped up their investment in GlobalFoundries by an astounding 1,935.4% during the same period, accumulating 127,210 shares worth $5,120,000 after purchasing an additional 120,960 shares. Furthermore, SG Americas Securities LLC entered the market with a new stake worth approximately $1,748,000 during the fourth quarter, while Versor Investments LP raised its position by 167.7% in the third quarter. Lastly, Weiss Asset Management LP purchased a new position in GlobalFoundries valued at around $8,361,000 during the third quarter.

About GlobalFoundries

GlobalFoundries Inc. is a semiconductor foundry that provides a wide range of mainstream wafer fabrication services and technologies across the globe. The company engages in the manufacturing of various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units.

Final Thoughts

Given the recent trading activity and analysts' ratings, many investors are reevaluating their positions in GlobalFoundries. With the stock currently holding a "Hold" rating, potential investors may want to consider whether now is the right time to buy or hold based on their individual investment strategies.

GlobalFoundries, Stocks, Trading