Globant (NYSE:GLOB) Shares Up 6.7% – Should You Buy?

Globant S.A. (NYSE:GLOB) shares shot up 6.7% during mid-day trading on Tuesday . The company traded as high as $34.67 and last traded at $34.8140. Approximately 168,325 shares changed hands during trading, a decline of 90% from the average session volume of 1,661,364 shares. The stock had previously closed at $32.64.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. UBS Group reduced their target price on Globant from $75.00 to $50.00 and set a “neutral” rating for the company in a research report on Tuesday, May 5th. Wedbush reissued an “outperform” rating on shares of Globant in a report on Monday, May 18th. TD Cowen dropped their price objective on shares of Globant from $59.00 to $47.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Citigroup reduced their price objective on shares of Globant from $42.00 to $37.00 and set a “neutral” rating for the company in a report on Monday. Finally, William Blair lowered shares of Globant from an “outperform” rating to a “market perform” rating in a research report on Tuesday, June 30th. Six investment 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 data from MarketBeat, Globant currently has a consensus rating of “Hold” and a consensus price target of $52.75.

Globant Stock Up 9.3%

The firm has a market cap of $1.56 billion, a price-to-earnings ratio of 14.50, a PEG ratio of 1.18 and a beta of 1.06. The business’s 50-day moving average is $34.50 and its 200-day moving average is $45.11. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82.

Globant (NYSE:GLOB) last released its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 EPS for the quarter, meeting analysts’ consensus estimates of $1.50. The firm had revenue of $607.09 million for the quarter, compared to analyst estimates of $601.65 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. The company’s revenue for the quarter was down .7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.50 earnings per share. On average, equities analysts predict that Globant S.A. will post 4.9 EPS for the current year.

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

Institutional Investors Weigh In On Globant

A number of large investors have recently bought and sold shares of the business. GAMMA Investing LLC increased its holdings in Globant by 34.3% during the 4th quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider’s stock valued at $47,000 after purchasing an additional 182 shares in the last quarter. Signaturefd LLC boosted its stake in Globant by 65.1% in the fourth quarter. Signaturefd LLC now owns 482 shares of the information technology services provider’s stock worth $32,000 after purchasing an additional 190 shares in the last quarter. Sanctuary Advisors LLC grew its holdings in shares of Globant by 7.2% during the fourth quarter. Sanctuary Advisors LLC now owns 3,801 shares of the information technology services provider’s stock worth $248,000 after purchasing an additional 255 shares during the last quarter. CWM LLC grew its holdings in shares of Globant by 33.7% during the fourth quarter. CWM LLC now owns 1,151 shares of the information technology services provider’s stock worth $75,000 after purchasing an additional 290 shares during the last quarter. Finally, Parallel Advisors LLC increased its stake in shares of Globant by 27.1% in the first quarter. Parallel Advisors LLC now owns 1,735 shares of the information technology services provider’s stock valued at $80,000 after buying an additional 370 shares in the last quarter. 91.60% of the stock is currently owned by institutional investors.

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.