Dimensional Fund Advisors LP Has $21.54 Million Holdings in Globant S.A. $GLOB

Key Points

• Dimensional Fund Advisors reduced its Globant stake by 16.5% in the first quarter, selling 92,532 shares and retaining 467,065 shares worth approximately $21.54 million. Institutional investors and hedge funds collectively own 91.6% of Globant.
• Analysts have become more cautious, with several firms cutting price targets. Globant has a consensus “Hold” rating and an average price target of $52.75, compared with a recent share price of $37.23.
• Globant’s latest quarterly revenue reached $607.09 million, slightly ahead of estimates, while revenue declined 0.7% year over year. The company also authorized a $50 million share-repurchase program, covering up to 2.9% of outstanding shares.

Dimensional Fund Advisors LP cut its stake in Globant S.A. (NYSE:GLOB - Free Report) by 16.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 467,065 shares of the information technology services provider's stock after selling 92,532 shares during the period. Dimensional Fund Advisors LP owned 1.07% of Globant worth $21,536,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently modified their holdings of the company. Pzena Investment Management LLC acquired a new stake in shares of Globant in the first quarter valued at approximately $136,893,000. Brandes Investment Partners LP lifted its holdings in Globant by 4.0% during the 4th quarter. Brandes Investment Partners LP now owns 2,400,732 shares of the information technology services provider's stock worth $156,936,000 after buying an additional 91,732 shares in the last quarter. Capital International Investors boosted its position in Globant by 10.6% in the 4th quarter. Capital International Investors now owns 2,283,802 shares of the information technology services provider's stock valued at $149,292,000 after buying an additional 218,570 shares during the last quarter. Royal Bank of Canada boosted its position in Globant by 8.5% in the 4th quarter. Royal Bank of Canada now owns 1,777,710 shares of the information technology services provider's stock valued at $116,209,000 after buying an additional 138,596 shares during the last quarter. Finally, Wasatch Advisors LP increased its stake in shares of Globant by 19.0% in the 4th quarter. Wasatch Advisors LP now owns 1,243,309 shares of the information technology services provider's stock valued at $81,275,000 after buying an additional 198,318 shares during the period. 91.60% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

GLOB has been the subject of a number of recent research reports. Itau BBA Securities downgraded Globant from an "outperform" rating to a "market perform" rating and set a $39.00 target price for the company. in a research report on Wednesday, July 8th. The Goldman Sachs Group decreased their price target on Globant from $68.00 to $60.00 and set a "neutral" rating on the stock in a report on Friday, May 15th. Wells Fargo & Company lowered their price objective on Globant from $50.00 to $42.00 and set an "equal weight" rating for the company in a research report on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $33.00 price objective on Globant in a report on Friday, July 10th. Finally, Canaccord Genuity Group lowered their price target on shares of Globant from $50.00 to $40.00 and set a "hold" rating for the company in a research report on Friday, May 15th. Six investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $52.75.

Globant Stock Down 3.0%

Shares of Globant stock opened at $37.23 on Friday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.16. Globant S.A. has a 12 month low of $27.56 and a 12 month high of $82.71. The business has a fifty day simple moving average of $34.04 and a 200 day simple moving average of $43.37. The stock has a market cap of $1.63 billion, a PE ratio of 15.13, a price-to-earnings-growth ratio of 1.45 and a beta of 1.02.

Globant (NYSE:GLOB - Get Free Report) last released its earnings results 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 return on equity of 9.87% and a net margin of 4.46%.The firm had revenue of $607.09 million for the quarter, compared to analyst estimates of $601.65 million. During the same quarter in the prior year, the firm posted $1.50 earnings per share. The company's quarterly revenue was down .7% on a year-over-year basis. Research analysts predict that Globant S.A. will post 4.89 EPS for the current year.

Globant declared that its board has authorized a stock repurchase program on Monday, May 18th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

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.

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