Globant (NYSE:GLOB) Hits New 1-Year Low – Here’s What Happened

Globant S.A. (NYSE:GLOB)’s share price reached a new 52-week low during trading on Thursday . The company traded as low as $30.28 and last traded at $32.0810, with a volume of 483527 shares traded. The stock had previously closed at $34.61.

Analysts Set New Price Targets

GLOB has been the topic of a number of research reports. Susquehanna cut their price objective on Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a report on Friday, May 15th. Needham & Company LLC cut their price objective on Globant from $60.00 to $50.00 and set a “buy” rating on the stock in a report on Friday, May 15th. The Goldman Sachs Group cut their price objective on Globant from $68.00 to $60.00 and set a “neutral” rating on the stock in a report on Friday, May 15th. Guggenheim cut their price objective on Globant from $80.00 to $65.00 and set a “buy” rating on the stock in a report on Monday, February 23rd. Finally, Wedbush restated an “outperform” rating on shares of Globant in a report on Monday, May 18th. Eight analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $64.81.

Globant Trading Down 8.8%

The firm has a market capitalization of $1.38 billion, a PE ratio of 12.82, a P/E/G ratio of 1.34 and a beta of 1.02. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82. The firm has a fifty day moving average of $41.20 and a 200 day moving average of $52.30.

Globant (NYSE:GLOB) last announced its earnings results on Friday, May 15th. The information technology services provider reported $1.50 EPS for the quarter, meeting the consensus estimate of $1.50. The business had revenue of $607.09 million for the quarter, compared to the consensus estimate of $601.66 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The company’s revenue was down .7% on a year-over-year basis. During the same period last year, the business posted $1.50 EPS. Equities research analysts expect that Globant S.A. will post 4.94 EPS for the current year.

Globant announced that its Board of Directors has approved a stock repurchase plan on Monday, May 18th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to purchase up to 2.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pzena Investment Management LLC acquired a new position in Globant during the 1st quarter valued at approximately $136,893,000. Brandes Investment Partners LP boosted its position in Globant by 4.0% during the 4th quarter. Brandes Investment Partners LP now owns 2,400,732 shares of the information technology services provider’s stock valued at $156,936,000 after purchasing an additional 91,732 shares during the period. Capital International Investors boosted its position in Globant by 10.6% during the 4th quarter. Capital International Investors now owns 2,283,802 shares of the information technology services provider’s stock valued at $149,292,000 after purchasing an additional 218,570 shares during the period. Royal Bank of Canada boosted its position in Globant by 8.5% during the 4th quarter. Royal Bank of Canada now owns 1,777,710 shares of the information technology services provider’s stock valued at $116,209,000 after purchasing an additional 138,596 shares during the period. Finally, Wasatch Advisors LP boosted its position in Globant by 19.0% during the 4th quarter. Wasatch Advisors LP now owns 1,243,309 shares of the information technology services provider’s stock valued at $81,275,000 after purchasing an additional 198,318 shares during the period. Institutional investors and hedge funds own 91.60% of the company’s stock.

Globant Company Profile

Globant is a digitally native technology services company founded in 2003 in Buenos Aires, Argentina. Specializing in software development and digital transformation, Globant partners with enterprises to conceive, design and engineer software products and platforms. The company leverages agile methodologies and proprietary delivery frameworks to accelerate projects in areas such as cloud migration, user experience design, data analytics, artificial intelligence and blockchain-enabled solutions.

Globant’s service offerings span strategy consulting, custom software engineering, digital experience design and managed services.