GlobalFoundries Inc (GFS) Shares Plummet Below 1-Year High

GlobalFoundries Inc (NASDAQ: GFS)’s stock price has plunge by -2.59relation to previous closing price of 41.33. Nevertheless, the company has seen a 1.85% surge in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-13 that GlobalFoundries faces growth challenges due to weak demand in key segments, but Smart Mobile Devices show signs of recovery with forecasted 4% increase in smartphone shipments. The Communications Infrastructure & Datacenter segment struggles with competitiveness as customers shift to advanced nodes, impacting GlobalFoundries’ market position. Home and Industrial IoT segments are expected to see slow recovery as customer inventories normalize and industrial production growth shows modest improvement.

Is It Worth Investing in GlobalFoundries Inc (NASDAQ: GFS) Right Now?

GlobalFoundries Inc (NASDAQ: GFS) has a price-to-earnings ratio of 27.52x that is above its average ratio. Additionally, the 36-month beta value for GFS is 1.51. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 4 rating it as “overweight,” 8 rating it as “hold,” and 0 rating it as “sell.”

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The public float for GFS is 86.00M and currently, short sellers hold a 14.15% ratio of that float. The average trading volume of GFS on October 16, 2024 was 1.50M shares.

GFS’s Market Performance

The stock of GlobalFoundries Inc (GFS) has seen a 1.85% increase in the past week, with a 2.73% rise in the past month, and a -30.74% fall in the past quarter. The volatility ratio for the week is 3.20%, and the volatility levels for the past 30 days are at 3.17% for GFS. The simple moving average for the past 20 days is 0.88% for GFS’s stock, with a -19.19% simple moving average for the past 200 days.

Analysts’ Opinion of GFS

Many brokerage firms have already submitted their reports for GFS stocks, with TD Cowen repeating the rating for GFS by listing it as a “Buy.” The predicted price for GFS in the upcoming period, according to TD Cowen is $55 based on the research report published on August 07, 2024 of the current year 2024.

Jefferies, on the other hand, stated in their research note that they expect to see GFS reach a price target of $62, previously predicting the price at $67. The rating they have provided for GFS stocks is “Buy” according to the report published on May 13th, 2024.

Evercore ISI gave a rating of “Outperform” to GFS, setting the target price at $71 in the report published on April 16th of the current year.

GFS Trading at -4.08% from the 50-Day Moving Average

After a stumble in the market that brought GFS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -35.70% of loss for the given period.

Volatility was left at 3.17%, however, over the last 30 days, the volatility rate increased by 3.20%, as shares surge +2.94% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.07% lower at present.

During the last 5 trading sessions, GFS rose by +1.85%, which changed the moving average for the period of 200-days by -34.55% in comparison to the 20-day moving average, which settled at $39.91. In addition, GlobalFoundries Inc saw -33.56% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at GFS starting from EDELMAN MARTIN L, who proposed sale 4,866 shares at the price of $38.76 back on Oct 02 ’24. After this action, EDELMAN MARTIN L now owns shares of GlobalFoundries Inc, valued at $188,606 using the latest closing price.

EDELMAN MARTIN L, the Director of GlobalFoundries Inc, proposed sale 1,823 shares at $44.33 during a trade that took place back on Aug 07 ’24, which means that EDELMAN MARTIN L is holding shares at $80,814 based on the most recent closing price.

Stock Fundamentals for GFS

Current profitability levels for the company are sitting at:

  • 0.13 for the present operating margin
  • 0.27 for the gross margin

The net margin for GlobalFoundries Inc stands at 0.12. The total capital return value is set at 0.06. Equity return is now at value 7.47, with 4.55 for asset returns.

Based on GlobalFoundries Inc (GFS), the company’s capital structure generated 0.17 points at debt to capital in total, while cash flow to debt ratio is standing at 0.86.

Currently, EBITDA for the company is 2.65 billion with net debt to EBITDA at 0.23. When we switch over and look at the enterprise to sales, we see a ratio of 3.33. The receivables turnover for the company is 6.2for trailing twelve months and the total asset turnover is 0.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.22.

Conclusion

In conclusion, GlobalFoundries Inc (GFS) has seen mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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