Globant (NYSE:GLOB) Declares Share Buyback Program

Globant (NYSE:GLOB) announced that its board has approved a share buyback program on Monday, May 18th, RTT News reports. The company plans to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Globant Stock Performance

NYSE:GLOB traded up $0.98 during mid-day trading on Monday, hitting $39.89. 2,399,226 shares of the company’s stock traded hands, compared to its average volume of 1,872,731. The firm has a 50 day moving average of $44.30 and a two-hundred day moving average of $55.74. The firm has a market capitalization of $1.75 billion, a price-to-earnings ratio of 16.21, a price-to-earnings-growth ratio of 1.43 and a beta of 1.04. 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 has a 12 month low of $32.50 and a 12 month high of $107.12.

Globant (NYSE:GLOB) last released 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. Globant had a net margin of 4.46% and a return on equity of 9.87%. The firm had revenue of $607.09 million during the quarter, compared to analysts’ expectations of $601.66 million. During the same period in the prior year, the company earned $1.50 EPS. The business’s quarterly revenue was down .7% compared to the same quarter last year. On average, equities analysts forecast that Globant will post 4.99 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Guggenheim dropped their price target on shares of Globant from $80.00 to $65.00 and set a “buy” rating on the stock in a research report on Monday, February 23rd. Susquehanna decreased their target price on Globant from $90.00 to $78.00 and set a “positive” rating for the company in a research report on Friday. JPMorgan Chase & Co. lowered their price objective on shares of Globant from $75.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 18th. Wells Fargo & Company lowered their target price on Globant from $57.00 to $50.00 and set an “equal weight” rating on the stock in a research note on Friday, March 27th. Finally, Needham & Company LLC dropped their price target on shares of Globant from $60.00 to $50.00 and set a “buy” rating on the stock in a research note on Friday. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $64.81.

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.