ARGA Investment Management LP Sells 923,689 Shares of Globant S.A. $GLOB

Key Points

• ARGA Investment Management LP cut its Globant stake by 45.5% in the first quarter, selling 923,689 shares and leaving it with 1.11 million shares valued at about $51 million.
• Globant stock was down 4.3% and recently traded near $29.94, close to its 1-year low of $27.56 and well below its 1-year high of $94.35.
• The company’s latest earnings matched expectations with $1.50 EPS and slightly beat revenue estimates, while analysts have become more cautious, with several firms cutting price targets and the consensus rating now at Hold.

ARGA Investment Management LP lowered its stake in shares of Globant S.A. (NYSE:GLOB - Free Report) by 45.5% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,105,070 shares of the information technology services provider's stock after selling 923,689 shares during the quarter. Globant makes up approximately 1.7% of ARGA Investment Management LP's portfolio, making the stock its 12th largest holding. ARGA Investment Management LP owned about 2.52% of Globant worth $50,955,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. Signaturefd LLC raised its position 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 acquiring an additional 190 shares during the period. Allworth Financial LP increased its stake in shares of 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 purchasing an additional 407 shares during the last quarter. Larson Financial Group LLC increased its stake in shares of Globant by 561.2% during the 4th 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 raised its holdings 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 bought a new stake in shares of Globant in the 4th quarter worth approximately $47,000. Hedge funds and other institutional investors own 91.60% of the company's stock.

Globant Stock Down 4.3%

Globant stock opened at $29.94 on Friday. The firm has a 50 day simple moving average of $35.92 and a 200 day simple moving average of $47.97. 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 S.A. has a 1-year low of $27.56 and a 1-year high of $94.35. The firm has a market capitalization of $1.31 billion, a price-to-earnings ratio of 12.17, a P/E/G ratio of 1.15 and a beta of 1.06.

Globant (NYSE:GLOB - Get Free Report) last posted its earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.50. The firm had revenue of $607.09 million for the quarter, compared to the consensus estimate of $601.65 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business's quarterly revenue was down .7% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.50 earnings per share. On average, analysts predict that Globant S.A. will post 4.92 earnings per share for the current year.

Globant declared 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 buy up to 2.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Truist Financial reduced their price objective on Globant from $54.00 to $44.00 and set a "hold" rating for the company in a report on Friday, May 15th. Itau BBA Securities lowered 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. TD Cowen dropped their price target on Globant from $59.00 to $47.00 and set a "buy" rating on the stock in a research report on Thursday. Wells Fargo & Company cut their price target on Globant from $50.00 to $42.00 and set an "equal weight" rating for the company in a research note on Friday. Finally, William Blair lowered Globant from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Seven equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $58.18.

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.

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