Globant (NYSE:GLOB) Shares Down 4.3% – Here’s Why

Shares of Globant S.A. (NYSE:GLOB) were down 4.3% on Wednesday . The company traded as low as $36.77 and last traded at $37.2980. Approximately 102,179 shares changed hands during mid-day trading, a decline of 94% from the average session volume of 1,667,289 shares. The stock had previously closed at $38.98.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on GLOB. Canaccord Genuity Group dropped their price target on Globant from $50.00 to $40.00 and set a “hold” rating on the stock in a research note on Friday, May 15th. Citigroup lowered their price objective on shares of Globant from $42.00 to $37.00 and set a “neutral” rating for the company in a research note on Monday, July 27th. UBS Group dropped their target price on shares of Globant from $75.00 to $50.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 5th. Itau BBA Securities lowered shares of Globant from an “outperform” rating to a “market perform” rating and set a $39.00 target price on the stock. in a research note on Wednesday, July 8th. Finally, Needham & Company LLC reduced their price target on shares of Globant from $60.00 to $50.00 and set a “buy” rating for the company in a report on Friday, May 15th. Six equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Globant presently has an average rating of “Hold” and an average target price of $52.75.

Globant Trading Down 2.3%

The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.16. The firm’s 50-day moving average price is $33.80 and its 200 day moving average price is $42.78. The company has a market capitalization of $1.67 billion, a P/E ratio of 15.48, a P/E/G ratio of 1.45 and a beta of 1.02.

Globant (NYSE:GLOB) last announced its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, meeting the consensus estimate of $1.50. The business had revenue of $607.09 million for the quarter, compared to analysts’ expectations of $601.65 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. The firm’s revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.50 EPS. As a group, equities research analysts predict that Globant S.A. will post 4.89 earnings per share for the current year.

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Signaturefd LLC raised its position in Globant by 65.1% in the 4th quarter. Signaturefd LLC now owns 482 shares of the information technology services provider’s stock valued at $32,000 after buying an additional 190 shares during the last quarter. Allworth Financial LP boosted its holdings in Globant by 473.3% during the 4th quarter. Allworth Financial LP now owns 493 shares of the information technology services provider’s stock worth $32,000 after acquiring an additional 407 shares during the last quarter. Larson Financial Group LLC grew its stake in shares of Globant by 561.2% in the 4th quarter. Larson Financial Group LLC now owns 681 shares of the information technology services provider’s stock worth $45,000 after acquiring an additional 578 shares in the last quarter. MidFirst Bank bought a new stake in shares of Globant in the 4th quarter worth $47,000. Finally, State of Wyoming raised its holdings in shares of Globant by 78.9% in the second quarter. State of Wyoming now owns 882 shares of the information technology services provider’s stock valued at $80,000 after purchasing an additional 389 shares during the last quarter. 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.