Northwestern Mutual Wealth Management Co. Has $16.40 Million Position in Globant S.A. $GLOB

Key Points

• Northwestern Mutual Wealth Management sharply increased its Globant stake by 4,148% in the fourth quarter, ending with 250,842 shares worth about $16.4 million.
• Globant’s board approved a $50 million share repurchase program, a move that can signal management believes the stock is undervalued and may help support the share price.
• Analysts remain cautious overall: Globant has a consensus “Hold” rating, and several firms recently cut their price targets even after the company reported quarterly EPS in line with estimates and revenue slightly above forecasts.

Northwestern Mutual Wealth Management Co. boosted its stake in shares of Globant S.A. (NYSE:GLOB - Free Report) by 4,148.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 250,842 shares of the information technology services provider's stock after acquiring an additional 244,937 shares during the quarter. Northwestern Mutual Wealth Management Co. owned 0.57% of Globant worth $16,398,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Signaturefd LLC raised its stake in Globant by 65.1% during 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 in the last quarter. Allworth Financial LP increased its stake in shares of 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 buying an additional 407 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of Globant by 34.3% in the fourth quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider's stock valued at $47,000 after buying an additional 182 shares in the last quarter. CWM LLC increased its stake in shares of Globant by 35.4% in the third quarter. CWM LLC now owns 861 shares of the information technology services provider's stock valued at $49,000 after buying an additional 225 shares in the last quarter. Finally, State of Wyoming increased its stake in shares of Globant by 78.9% in the second quarter. State of Wyoming now owns 882 shares of the information technology services provider's stock valued at $80,000 after buying an additional 389 shares in the last quarter. 91.60% of the stock is currently owned by institutional investors and hedge funds.

Globant News Summary

Here are the key news stories impacting Globant this week:

• Positive Sentiment: Globant’s board approved a share repurchase program, with the company planning to buy back $50 million of stock in the open market. Buybacks often signal management thinks the shares are undervalued and can support the stock price. Article: Globant announces share buyback program
• Positive Sentiment: Globant also announced a new Formula 1 fan experience feature in the official F1 app, highlighting continued product and partnership activity that could support sentiment around its growth strategy. Article: Globant Powers New Connected Race Experience for Formula 1 Fans
• Neutral Sentiment: Several law firms issued reminders about a securities class action and a June 23 deadline for investors who claim losses in Globant shares. These notices add headline risk, but they are largely procedural at this stage. Article: Globant investors class action deadline
• Neutral Sentiment: Additional firms, including Rosen, Pomerantz, Schall, Faruqi & Faruqi, and others, circulated similar lawsuit notices, reinforcing legal overhang but not changing the core business outlook immediately. Article: GLOB investors have opportunity to lead securities fraud lawsuit

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Guggenheim lowered their target price on Globant from $80.00 to $65.00 and set a "buy" rating for the company in a research note on Monday, February 23rd. Wells Fargo & Company lowered their target price on Globant from $57.00 to $50.00 and set an "equal weight" rating for the company in a research note on Friday, March 27th. The Goldman Sachs Group lowered their target price on Globant from $68.00 to $60.00 and set a "neutral" rating for the company in a research note on Friday, May 15th. JPMorgan Chase & Co. lowered their target price on Globant from $75.00 to $68.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. Finally, Truist Financial lowered their target price on Globant from $54.00 to $44.00 and set a "hold" rating for the company in a research note on Friday, May 15th. Eight investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $64.81.

Globant Price Performance

Globant stock opened at $41.70 on Thursday. The business's 50-day simple moving average is $43.90 and its 200 day simple moving average is $55.47. The stock has a market cap of $1.83 billion, a price-to-earnings ratio of 16.95, a P/E/G ratio of 1.45 and a beta of 1.04. Globant S.A. has a 12-month low of $32.50 and a 12-month high of $107.12. 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 (NYSE:GLOB - Get Free Report) last posted its quarterly 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 $601.66 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The firm's quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the business earned $1.50 earnings per share. As a group, research analysts anticipate that Globant S.A. will post 4.99 earnings per share for the current year.

Globant declared that its board has initiated a stock repurchase plan on Monday, May 18th that permits the company to repurchase $50.00 million in outstanding 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 typically an indication that the company's leadership 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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