Globant (NYSE:GLOB) Hits New 1-Year Low - Here's What Happened

Key Points

• Globant S.A. shares hit a new 52-week low at $77.74, closing at $78.70, amidst high trading volume of over 1.5 million shares.
• Analyst ratings show mixed sentiments, with a downgrade from Goldman Sachs to "neutral" and a price target cut to $120, while Mizuho maintains an "outperform" rating with a target of $153.
• Despite missing earnings estimates, Globant's quarterly revenue increased by 7% year-over-year, reaching $611.09 million.

Shares of Globant S.A. (NYSE:GLOB - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $77.74 and last traded at $78.70, with a volume of 1569852 shares. The stock had previously closed at $79.62.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Wall Street Zen upgraded Globant from a "sell" rating to a "hold" rating in a report on Monday, May 19th. Guggenheim reiterated a "buy" rating and set a $125.00 target price on shares of Globant in a report on Tuesday, June 10th. The Goldman Sachs Group downgraded shares of Globant from a "buy" rating to a "neutral" rating and reduced their price objective for the stock from $225.00 to $120.00 in a research note on Friday, May 16th. Piper Sandler downgraded shares of Globant from an "overweight" rating to a "neutral" rating and reduced their price objective for the stock from $154.00 to $116.00 in a research note on Friday, May 16th. Finally, Mizuho set a $153.00 price objective on shares of Globant and gave the stock an "outperform" rating in a research note on Monday, May 19th. Seven equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $165.69.

Globant Price Performance

The business's 50 day moving average is $91.17 and its 200-day moving average is $126.77. The firm has a market capitalization of $3.47 billion, a P/E ratio of 23.29, a PEG ratio of 3.27 and a beta of 1.16. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 0.13.

Globant (NYSE:GLOB - Get Free Report) last issued its earnings results on Thursday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, missing analysts' consensus estimates of $1.58 by ($0.08). Globant had a net margin of 6.16% and a return on equity of 11.08%. The company had revenue of $611.09 million during the quarter, compared to analyst estimates of $622.18 million. During the same quarter in the prior year, the business earned $1.53 EPS. The business's quarterly revenue was up 7.0% on a year-over-year basis. As a group, sell-side analysts predict that Globant S.A. will post 5.73 EPS for the current fiscal year.

Hedge Funds Weigh In On Globant

Hedge funds and other institutional investors have recently bought and sold shares of the company. Fox Run Management L.L.C. bought a new stake in Globant in the second quarter valued at $1,275,000. Hussman Strategic Advisors Inc. increased its position in shares of Globant by 66.7% during the second quarter. Hussman Strategic Advisors Inc. now owns 42,000 shares of the information technology services provider's stock worth $3,815,000 after acquiring an additional 16,800 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. bought a new stake in shares of Globant during the second quarter worth about $148,000. Strs Ohio increased its position in shares of Globant by 2,022.2% during the second quarter. Strs Ohio now owns 192,019 shares of the information technology services provider's stock worth $17,443,000 after acquiring an additional 182,971 shares in the last quarter. Finally, Hantz Financial Services Inc. increased its position in shares of Globant by 8.5% during the second quarter. Hantz Financial Services Inc. now owns 16,837 shares of the information technology services provider's stock worth $1,529,000 after acquiring an additional 1,312 shares in the last quarter. Institutional investors and hedge funds own 91.60% of the company's stock.

About Globant

Globant SA, together with its subsidiaries, provides technology services worldwide. It provides digital solutions comprising blockchain, cloud technologies, cybersecurity, data and artificial intelligence, digital experience and performance, code, Internet of Things, metaverse, and engineering and testing; and enterprise technology solutions and services, such as Agile organization, Cultural Hacking, process optimization services, as well as AWS, Google Cloud, Microsoft, Oracle, SalesForce, SAP, and ServiceNow technology solutions.

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