Globant (NYSE:GLOB) Shares Gap Up – Should You Buy?

Shares of Globant S.A. (NYSE:GLOB) gapped up prior to trading on Tuesday . The stock had previously closed at $30.95, but opened at $32.33. Globant shares last traded at $31.46, with a volume of 119,357 shares changing hands.

Analyst Ratings Changes

GLOB has been the topic of a number of analyst reports. Wedbush reiterated an “outperform” rating on shares of Globant in a research report on Monday, May 18th. Itau BBA Securities cut Globant from an “outperform” rating to a “market perform” rating and set a $39.00 target price for the company. in a report on Wednesday. Canaccord Genuity Group cut their target price on Globant from $50.00 to $40.00 and set a “hold” rating for the company in a research note on Friday, May 15th. TD Cowen reduced their price target on Globant from $74.00 to $72.00 and set a “buy” rating on the stock in a report on Monday, April 6th. Finally, William Blair cut shares of Globant from an “outperform” rating to a “market perform” rating in a research report on Tuesday, June 30th. Seven investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $63.29.

Globant Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.82 and a quick ratio of 1.82. The company has a market cap of $1.31 billion, a price-to-earnings ratio of 12.18, a PEG ratio of 1.16 and a beta of 1.06. The firm has a 50 day simple moving average of $36.33 and a 200-day simple moving average of $48.37.

Globant (NYSE:GLOB) last announced its quarterly 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 analyst estimates of $601.65 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The company’s quarterly revenue was down .7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.50 EPS. As a group, analysts predict that Globant S.A. will post 4.92 EPS for the current fiscal year.

Globant declared that its board has approved a share buyback plan on Monday, May 18th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of GLOB. Pzena Investment Management LLC purchased a new position in shares of Globant during the 1st quarter worth approximately $136,893,000. Alliancebernstein L.P. lifted its stake in Globant by 6,875.8% during the second quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider’s stock worth $84,413,000 after purchasing an additional 915,924 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in Globant by 601.5% during the third quarter. BNP Paribas Financial Markets now owns 783,930 shares of the information technology services provider’s stock worth $44,982,000 after purchasing an additional 672,175 shares in the last quarter. Principal Financial Group Inc. boosted its position in shares of Globant by 340.3% during the fourth quarter. Principal Financial Group Inc. now owns 815,703 shares of the information technology services provider’s stock worth $53,323,000 after buying an additional 630,440 shares during the period. Finally, Two Sigma Investments LP boosted its position in shares of Globant by 493.8% during the third quarter. Two Sigma Investments LP now owns 660,296 shares of the information technology services provider’s stock worth $37,888,000 after buying an additional 549,089 shares during the period. Hedge funds and other institutional investors own 91.60% of the company’s stock.

About Globant

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.