Globant (NYSE:GLOB) Trading Up 8% – Here’s What Happened

Globant S.A. (NYSE:GLOB)’s stock price traded up 8% on Wednesday . The stock traded as high as $31.19 and last traded at $31.2480. 753,544 shares traded hands during trading, a decline of 54% from the average session volume of 1,638,612 shares. The stock had previously closed at $28.94.

Analysts Set New Price Targets

A number of brokerages recently issued reports on GLOB. 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. Mizuho decreased their target price on shares of Globant from $91.00 to $76.00 and set an “outperform” rating for the company in a report on Tuesday, March 3rd. William Blair downgraded shares of Globant from an “outperform” rating to a “market perform” rating in a research note on Tuesday. UBS Group cut their price target on shares of Globant from $75.00 to $50.00 and set a “neutral” rating on the stock in a report on Tuesday, May 5th. Finally, Susquehanna reduced their price target on shares of Globant from $90.00 to $78.00 and set a “positive” rating for the company in a research report on Friday, May 15th. Seven investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $64.81.

Globant Price Performance

The business’s 50 day moving average price is $38.10 and its 200 day moving average price is $49.88. The stock has a market capitalization of $1.39 billion, a P/E ratio of 12.92, a price-to-earnings-growth ratio of 1.10 and a beta of 1.02. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.82 and a quick ratio of 1.82.

Globant (NYSE:GLOB) last released its quarterly earnings data 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. 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 $601.65 million. During the same period in the previous year, the company earned $1.50 earnings per share. The firm’s quarterly revenue was down .7% on a year-over-year basis. Sell-side analysts forecast that Globant S.A. will post 4.94 EPS for the current year.

Globant announced that its Board of Directors has authorized a share repurchase plan on Monday, May 18th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the information technology services provider to purchase up to 2.9% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Globant

Institutional investors and hedge funds have recently modified their holdings of the company. Signaturefd LLC grew its holdings in shares of 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 acquiring an additional 190 shares during the period. Allworth Financial LP lifted its holdings in Globant by 473.3% in the fourth quarter. Allworth Financial LP now owns 493 shares of the information technology services provider’s stock valued at $32,000 after acquiring an additional 407 shares during the period. Larson Financial Group LLC boosted its position in Globant by 561.2% in the fourth quarter. Larson Financial Group LLC now owns 681 shares of the information technology services provider’s stock worth $45,000 after purchasing an additional 578 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Globant by 34.3% in the 4th quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider’s stock worth $47,000 after purchasing an additional 182 shares during the period. Finally, MidFirst Bank purchased a new position in shares of Globant in the fourth quarter worth approximately $47,000. 91.60% of the stock is currently owned by hedge funds and other 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.