Globant (NYSE:GLOB) Posts Earnings Results, Meets Estimates

Globant (NYSE:GLOB - Get Free Report) announced its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, meeting analysts' consensus estimates of $1.50, FiscalAI reports. The business had revenue of $607.09 million during the quarter, compared to analysts' expectations of $601.65 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business's revenue for the quarter was down .7% on a year-over-year basis. During the same quarter last year, the business posted $1.50 earnings per share.

Globant Trading Up 0.2%

Shares of GLOB stock traded up $0.07 during mid-day trading on Monday, hitting $38.37. 358,493 shares of the company's stock were exchanged, compared to its average volume of 1,546,453. The stock has a market cap of $1.68 billion, a price-to-earnings ratio of 15.60, a PEG ratio of 1.40 and a beta of 1.02. 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 has a fifty-two week low of $32.50 and a fifty-two week high of $105.43. The stock has a 50-day simple moving average of $42.73 and a two-hundred day simple moving average of $53.72.

Analysts Set New Price Targets

Several equities analysts have weighed in on GLOB shares. Guggenheim dropped their target price on shares of Globant from $80.00 to $65.00 and set a "buy" rating for the company in a report on Monday, February 23rd. JPMorgan Chase & Co. reduced their price target on shares of Globant from $75.00 to $68.00 and set a "neutral" rating on the stock in a report on Wednesday, February 18th. TD Cowen lowered their price target on shares of Globant from $74.00 to $72.00 and set a "buy" rating on the stock in a research report on Monday, April 6th. Wedbush reissued an "outperform" rating on shares of Globant in a research note on Monday, May 18th. Finally, Truist Financial cut their price objective on Globant from $54.00 to $44.00 and set a "hold" rating for the company in a research report on Friday, May 15th. Eight equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $64.81.

Hedge Funds Weigh In On Globant

Several large investors have recently added to or reduced their stakes in the business. Advisors Asset Management Inc. boosted its stake in Globant by 77.4% in the 4th quarter. Advisors Asset Management Inc. now owns 912 shares of the information technology services provider's stock worth $60,000 after buying an additional 398 shares during the last quarter. CIBC Private Wealth Group LLC lifted its holdings in shares of Globant by 83.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,125 shares of the information technology services provider's stock worth $65,000 after acquiring an additional 511 shares during the period. State of Wyoming lifted its holdings in shares of Globant by 78.9% during the 2nd quarter. State of Wyoming now owns 882 shares of the information technology services provider's stock worth $80,000 after acquiring an additional 389 shares during the period. Parallel Advisors LLC boosted its position in shares of Globant by 273.0% in the fourth quarter. Parallel Advisors LLC now owns 1,365 shares of the information technology services provider's stock worth $89,000 after acquiring an additional 999 shares during the last quarter. Finally, Empowered Funds LLC purchased a new stake in Globant in the fourth quarter valued at approximately $105,000. 91.60% of the stock is currently owned by hedge funds and other institutional investors.

Globant announced that its board has initiated a stock repurchase program on Monday, May 18th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the information technology services provider to buy up to 2.9% of its stock through open market purchases. Stock buyback programs are typically a sign 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.