Globant (NYSE:GLOB) Trading Up 8% – Here’s What Happened

Globant S.A. (NYSE:GLOB)’s share price was up 8% on Wednesday . The stock traded as high as $31.19 and last traded at $31.2480. 753,544 shares traded hands during mid-day trading, a decline of 54% from the average session volume of 1,638,612 shares. The stock had previously closed at $28.94.

Wall Street Analyst Weigh In

Several research firms recently issued reports on GLOB. Truist Financial dropped their price objective on Globant from $54.00 to $44.00 and set a “hold” rating for the company in a research note on Friday, May 15th. TD Cowen decreased their target price on Globant from $74.00 to $72.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Canaccord Genuity Group lowered their price target on Globant from $50.00 to $40.00 and set a “hold” rating on the stock in a report on Friday, May 15th. The Goldman Sachs Group dropped their price target on Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. Finally, Needham & Company LLC cut their price objective on Globant from $60.00 to $50.00 and set a “buy” rating for the company in a report on Friday, May 15th. Seven research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $64.81.

Globant Price Performance

The business’s fifty day moving average price is $37.36 and its 200-day moving average price is $49.38. The company has a market capitalization of $1.42 billion, a P/E ratio of 13.21, a P/E/G ratio of 1.15 and a beta of 1.06. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.16.

Globant (NYSE:GLOB) last released its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.50. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business had revenue of $607.09 million for the quarter, compared to the consensus estimate of $601.65 million. During the same quarter last year, the business posted $1.50 earnings per share. The company’s revenue for the quarter was down .7% on a year-over-year basis. As a group, sell-side analysts predict that Globant S.A. will post 4.92 earnings per share for the current fiscal year.

Globant declared that its Board of Directors has authorized a share buyback plan on Monday, May 18th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the information technology services provider to repurchase up to 2.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Globant

Several hedge funds and other institutional investors have recently bought and sold shares of GLOB. Maxi Investments CY Ltd bought a new stake in shares of Globant in the 4th quarter worth approximately $2,255,000. Principal Financial Group Inc. grew its holdings in shares of Globant by 340.3% during the 4th quarter. Principal Financial Group Inc. now owns 815,703 shares of the information technology services provider’s stock valued at $53,323,000 after purchasing an additional 630,440 shares during the last quarter. Citizens Financial Group Inc. RI bought a new position in shares of Globant during the 4th quarter valued at $5,095,000. Bank of Nova Scotia raised its position in Globant by 9,602.6% in the 3rd quarter. Bank of Nova Scotia now owns 378,400 shares of the information technology services provider’s stock worth $21,713,000 after purchasing an additional 374,500 shares during the period. Finally, Circumference Group LLC purchased a new position in Globant in the 3rd quarter worth $1,607,000. Hedge funds and other institutional investors 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.