GlobalFoundries Inc. (NASDAQ: GFS) said its general counsel, Samak Azar, sold 335 common shares on Aug. 20 for a total of $16,207, according to a regulatory filing.
The disposal was executed under a pre-arranged Rule 10b5-1 trading plan, with shares sold at $48.38 each. Following the transaction, Azar retains a direct holding of 10,804 shares in the company.
The sale follows a week in which GlobalFoundries' stock retreated to $46.05, a decline of more than 10% from the prior week's levels. The company's shares trade at a price-to-earnings ratio of 37.53 and carry a market capitalization of $26.37 billion, according to InvestingPro data.
GlobalFoundries reported adjusted earnings per share of $0.46 in the second quarter, exceeding Wall Street expectations of $0.43, and revenue of $1.79 billion, above the $1.76 billion forecast. Gross margin improved to 29.9%, with management targeting about 30% for the full year.
Revenue in the communications infrastructure and data centers segment surged 62% year-over-year, prompting the company to raise its annual growth outlook for the segment to between 50% and 60%.
UBS adjusted its price target for GlobalFoundries to $55 from $61 while maintaining a Neutral rating. The bank cited a September quarter revenue projection at the midpoint of its estimated range, which fell slightly below UBS estimates. The mobile devices segment outlook was revised to indicate a steeper decline in the fourth quarter.
