GlobalFoundries (NASDAQ:GFS) Experiences High Trading Volume - Should You Consider Buying?

GlobalFoundries Inc. (NASDAQ:GFS) experienced notable trading activity on Tuesday, with a total of 1,454,135 shares changing hands. This represented a decrease of 18% from the previous day's volume, which was 1,770,172 shares. The stock price at the last trading session was $39.94, significantly higher than its previous closing price of $37.74.

Recent Analyst Ratings

Various analysts have recently shared their thoughts on GlobalFoundries. Morgan Stanley downgraded the company from an "overweight" rating to "equal weight," and adjusted their target price from $53.00 down to $43.00 in a report issued on October 28th. Needham & Company LLC reaffirmed a "hold" rating for GlobalFoundries on November 6th. Deutsche Bank also lowered its target price from $55.00 to $50.00 while maintaining a "buy" rating on the stock. Citigroup reduced its price target from $45.00 to $40.00, giving the stock a "neutral" rating on November 5th. Lastly, Evercore ISI reduced its target price from $71.00 to $55.00, keeping an "outperform" rating for the stock. Currently, nine analysts suggest holding the stock, whereas six analysts recommend buying it. According to MarketBeat data, the average rating is "Hold," with a consensus target price of $50.21.

Current Stock Performance of GlobalFoundries

The average price over the last fifty days stood at $42.63, while the two-hundred-day moving average price was $42.49. GlobalFoundries boasts a market capitalization of $22.09 billion, alongside a price-to-earnings (PE) ratio of 29.90 and a price-to-earnings-growth (PEG) ratio of 8.23. The company's beta is at 1.56, suggesting higher volatility compared to the market. Financially, GlobalFoundries has a current ratio of 2.42 and a quick ratio of 1.76, indicating solid short-term liquidity. Its debt-to-equity ratio is relatively low at 0.19.

In its latest earnings report released on February 11th, the company posted an earnings per share (EPS) of $0.38, which fell short of the expected $0.45 by $0.07. GlobalFoundries demonstrated a net margin of 10.95% and a return on equity of 6.87%. Analysts predict that GlobalFoundries will achieve an EPS of 1.22 for the current fiscal year.

Hedge Fund Activities Related to GlobalFoundries

Recent trading activity shows that hedge funds are actively changing their positions in GlobalFoundries. For instance, Quantbot Technologies LP boosted its stake by 89.0% during the third quarter, now owning 73,762 shares worth approximately $2,969,000 after acquiring an additional 34,731 shares. UBS AM, part of UBS Asset Management Americas LLC, increased its holdings in GlobalFoundries by an incredible 1,935.4% in the same quarter with a total of 127,210 shares worth about $5,120,000 after buying an extra 120,960 shares. SG Americas Securities LLC also bought new shares in GlobalFoundries, valued at approximately $1,748,000. Versor Investments LP raised its stake by 167.7% during the third quarter, now holding 19,008 shares valued at $765,000 following an additional purchase of 11,908 shares. In addition, Weiss Asset Management LP entered a new position in GlobalFoundries during the third quarter worth about $8,361,000.

About GlobalFoundries

GlobalFoundries Inc. is a semiconductor foundry that provides a variety of mainstream wafer fabrication services and technologies globally. They produce a range of semiconductor devices, such as microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units.

Conclusion: Is GlobalFoundries a Good Investment?

Given the mixed reviews from analysts and the substantial trading activity, potential investors may want to evaluate GlobalFoundries' market position and financial strength before making a purchase. While some analysts rate the stock as a hold, others see potential upsides, making it a topic worth considering ahead of your next investment decision.

GlobalFoundries, Stock, Trading