TD Cowen has recently reiterated Globalfoundries Inc (GFS) stock to Buy rating, as announced on August 7, 2024, according to Finviz. Earlier, on May 13, 2024, Jefferies had initiated the stock to Buy, setting a price target of $62 for GFS stock. Evercore ISI also initiated Outperform rating with a price target of $71. Additionally, Cantor Fitzgerald reduced Neutral rating on April 8, 2024, with a target price of $55. Susquehanna analysts, in their report published on March 5, 2024, also reduced Neutral rating and set a price target of $48 for Globalfoundries Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Globalfoundries Inc (GFS) Stock Trading Recap
On Tuesday, Globalfoundries Inc (GFS) stock saw a decline, ending the day at $39.3 which represents a decrease of $-0.71 or -1.77% from the prior close of $40.01. The stock opened at $39.98 and touched a low of $38.81 during the day, reaching a high of $39.98. The volume of shares traded was 1.10 million falling short of the average volume of 1.37 million.
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GFS Stock Performance and Moving Averages
In recent trading, Globalfoundries Inc (GFS) stock price has shown some volatility, fluctuating -2.38% over the last five trades and -0.13% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -15.21%, and it has plunged by -24.00% in the previous three months. Currently, GFS is trading at -1.82%, -5.62%, and -20.42% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, GFS, a Technology sector stock, is trading -37.23% below its 52-week high but remains 2.21% above its 52-week low. The Average True Range (ATR) (14 days) of 1.23 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Globalfoundries Inc’s Profitability and Valuation Ratios
Globalfoundries Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 13.33% and a profit margin of 11.82%, with a gross margin of -15.21%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Globalfoundries Inc’s market capitalization stands at $21.83 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 26.87, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 20.63. Additionally, the Price-to-Sales Ratio is 3.17, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.93, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 84.52% of Globalfoundries Inc (GFS)’s shares, while financial institutions hold 18.59%.
