Needham has recently raised Globalfoundries Inc (GFS) stock to Buy rating, as announced on February 12, 2025, according to Finviz. Earlier, on November 20, 2024, UBS had initiated the stock to Neutral, setting a price target of $47. Morgan Stanley also reduced rating with a price target of $43. Additionally, TD Cowen reiterated Buy rating on August 7, 2024, with a target price of $55. Jefferies analysts, in their report published on May 13, 2024, also initiated Buy rating and set a price target of $62 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 Thursday, Globalfoundries Inc (GFS) stock saw a decline, ending the day at $42.82 which represents a decrease of $-0.73 or -1.68% from the prior close of $43.55. The stock opened at $43.55 and touched a low of $42.41 during the day, reaching a high of $44.8. The volume of shares traded was 3.89 million exceeding the average volume of 1.80 million.
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GFS Stock Performance and Moving Averages
In recent trading, Globalfoundries Inc (GFS) stock price has shown some volatility, fluctuating 10.93% over the last five trades and 4.01% 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 -4.55%, and it has gained 0.28% in the previous three months. Currently, GFS is trading at 4.07%, 0.84%, and -5.16% 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 -30.91% below its 52-week high but remains 19.44% above its 52-week low. The Average True Range (ATR) (14 days) of 1.86 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 financial health. The company currently boasts an operating margin of 10.79% and a profit margin of -3.93%, with a gross margin of -4.55%. 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 $23.79 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.48. Additionally, the Price-to-Sales Ratio is 3.52, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.06, 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 81.08% of Globalfoundries Inc (GFS)’s shares, while financial institutions hold 18.35%.
