GlobalFoundries Inc. (NASDAQ:GFS) shares moved lower in Thursday’s premarket trading after the semiconductor manufacturer priced a large secondary share offering.
The company also signaled confidence in its balance sheet by pairing the transaction with a sizable share repurchase from its largest shareholder.
Secondary Offering
GlobalFoundries announced Wednesday it priced a secondary public offering of 20 million ordinary shares at $42.00 per share. All shares are being sold by Mubadala Technology Investment Company, a subsidiary of Mubadala Investment Company PJSC and GlobalFoundries’ largest shareholder.
The selling shareholder also granted underwriters a 30-day option to purchase up to an additional 3 million shares. The offering is expected to close March 13, 2026. GlobalFoundries is not selling any shares and will not receive proceeds from the transaction.
Concurrent Share Repurchase
GlobalFoundries also agreed to repurchase $300 million of the selling shareholder’s shares from the underwriters at the same price paid in the offering.
The buyback is part of the company’s $500 million share repurchase authorization approved in February 2026 and will be funded with cash on hand.
J.P. Morgan and Morgan Stanley are acting as lead book-running managers for the offering.
Recent Earnings And Outlook
Last month, GlobalFoundries reported revenue of $1.830 billion, flat year over year and above the $1.803 billion analyst consensus estimate. Adjusted earnings per share were 55 cents, beating expectations of 47 cents.
For the first quarter, the company expects revenue of $1.600 billion to $1.650 billion, compared with the $1.611 billion consensus estimate. Adjusted earnings per share are projected between 30 cents and 40 cents, versus the 34 cents analyst estimate.
As of Dec. 31, 2025, GlobalFoundries generated $374 million in operating cash flow and held $4 billion in cash and cash equivalents.
Technical Analysis
The stock is currently trading 11.2% below its 20-day simple moving average (SMA) and 3.8% below its 50-day SMA, indicating short-term weakness. Over the past 12 months, shares have increased by 19.61%, and they are currently positioned closer to their 52-week highs than lows, suggesting a generally positive longer-term trend.
The RSI is at 44.96, which is considered neutral territory, indicating that the stock is neither overbought nor oversold at this time. Meanwhile, MACD shows a value of 0.7406, below its signal line at 1.2489, indicating bearish pressure on the stock. The combination of a neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $48.50
- Key Support: $39.00
Earnings & Analyst Outlook
GlobalFoundries is slated to provide its next financial update on May 5, 2026 (estimated).
- EPS Estimate: 32 cents (Down from 34 cents)
- Revenue Estimate: $1.63 billion (Up from $1.58 billion)
- Valuation: P/E of 27.7x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $47.00. Recent analyst moves include:
- Citigroup: Neutral (Raises Target to $49.00) (Feb. 12)
- Goldman Sachs: Neutral (Raises Target to $46.00) (Feb. 12)
- Wedbush: Neutral (Raises Target to $50.00) (Feb. 12)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for GlobalFoundries, highlighting its strengths and weaknesses compared to the broader market:
- Value: 65.74 — The stock is fairly valued compared to its peers.
- Growth: 80.51 — Indicates strong growth potential.
- Momentum: 80.9 — Stock is outperforming the broader market.
The Verdict: GlobalFoundries’ Benzinga Edge signal reveals a solid growth outlook, supported by strong momentum. While the Value score suggests it is fairly valued, the high Growth and Momentum scores indicate potential for continued upward movement in the stock price.
GFS Price Action: Globalfoundries shares were down 3.65% at $42.48 during premarket trading on Thursday, according to Benzinga Pro data.
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