Globant (NYSE:GLOB) Sets New 12-Month Low – Time to Sell?

Globant S.A. (NYSE:GLOB)’s stock price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $27.83 and last traded at $28.6060, with a volume of 262484 shares trading hands. The stock had previously closed at $29.12.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Wedbush reissued an “outperform” rating on shares of Globant in a research note on Monday, May 18th. Mizuho lowered their price target on Globant from $91.00 to $76.00 and set an “outperform” rating for the company in a research report on Tuesday, March 3rd. The Goldman Sachs Group dropped their price target on shares of Globant from $68.00 to $60.00 and set a “neutral” rating on the stock in a research note on Friday, May 15th. Susquehanna cut their price objective on shares of Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a research report on Friday, May 15th. Finally, Needham & Company LLC reduced their price objective on shares of Globant from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Friday, May 15th. Eight equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $64.81.

Globant Price Performance

The firm has a fifty day moving average of $39.66 and a 200 day moving average of $51.02. The company has a market capitalization of $1.23 billion, a P/E ratio of 11.37, a P/E/G ratio of 1.07 and a beta of 1.02. 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 posted its earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share (EPS) 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 business’s revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.50 EPS. On average, equities research analysts anticipate that Globant S.A. will post 4.94 EPS for the current year.

Globant declared that its Board of Directors has authorized a share buyback 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 buy up to 2.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Globant

Large investors have recently added to or reduced their stakes in the stock. Pzena Investment Management LLC bought a new position in shares of Globant during the 1st quarter valued at $136,893,000. Alliancebernstein L.P. grew its holdings in shares of Globant by 6,875.8% in the second quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider’s stock worth $84,413,000 after acquiring an additional 915,924 shares during the period. BNP Paribas Financial Markets increased its position 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 valued at $44,982,000 after acquiring an additional 672,175 shares during the last quarter. Principal Financial Group Inc. increased its position in 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 valued at $53,323,000 after acquiring an additional 630,440 shares during the last quarter. Finally, Two Sigma Investments LP lifted its holdings in Globant by 493.8% in the third quarter. Two Sigma Investments LP now owns 660,296 shares of the information technology services provider’s stock valued at $37,888,000 after acquiring an additional 549,089 shares during the period. 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.