Globant (NYSE:GLOB) Shares Gap Down After Analyst Downgrade

Key Points

• Shares of Globant gapped down after JPMorgan cut its price target from $75 to $68 while maintaining a neutral rating; the stock opened at $45.34 (prior close $49.46) and was last around $46.20 on ~408,800 shares, down roughly 7.6%.
• Analyst consensus is a Hold with a consensus target price of $97.31, based on 6 Buys, 11 Holds and 1 Sell, leaving the consensus target well above the current share price.
• Fundamentals and ownership: market cap ~$2.01 billion, P/E 20.59, high institutional ownership (~91.6%), and 50- and 200-day moving averages near $64, indicating the stock is trading significantly below recent averages.

Shares of Globant S.A. (NYSE:GLOB - Get Free Report) gapped down prior to trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $75.00 to $68.00. The stock had previously closed at $49.46, but opened at $45.34. JPMorgan Chase & Co. currently has a neutral rating on the stock. Globant shares last traded at $46.1950, with a volume of 408,796 shares trading hands.

GLOB has been the subject of a number of other reports. UBS Group reaffirmed a "neutral" rating and set a $75.00 price target on shares of Globant in a report on Monday, January 19th. Wells Fargo & Company upped their price objective on shares of Globant from $61.00 to $68.00 and gave the company an "equal weight" rating in a research report on Wednesday, January 14th. Weiss Ratings restated a "sell (d+)" rating on shares of Globant in a research note on Monday, December 29th. Truist Financial assumed coverage on Globant in a research note on Tuesday, January 6th. They issued a "hold" rating and a $72.00 price target on the stock. Finally, Needham & Company LLC reduced their price target on Globant from $85.00 to $80.00 and set a "buy" rating for the company in a report on Friday, November 14th. Six equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Globant has an average rating of "Hold" and a consensus target price of $97.31.

Institutional Trading of Globant

Several institutional investors and hedge funds have recently bought and sold shares of GLOB. Allworth Financial LP grew its position in shares of Globant by 214.1% in the 2nd quarter. Allworth Financial LP now owns 289 shares of the information technology services provider's stock worth $26,000 after acquiring an additional 197 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in Globant by 352.0% during the third quarter. Geneos Wealth Management Inc. now owns 452 shares of the information technology services provider's stock worth $26,000 after purchasing an additional 352 shares during the last quarter. Signaturefd LLC lifted 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 purchasing an additional 190 shares during the last quarter. Larson Financial Group LLC boosted its holdings in Globant by 561.2% in the fourth 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 period. Finally, GAMMA Investing LLC increased its stake in Globant by 34.3% during the fourth quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider's stock valued at $47,000 after purchasing an additional 182 shares during the last quarter. Institutional investors and hedge funds own 91.60% of the company's stock.

Globant Trading Down 7.6%

The stock has a market cap of $2.01 billion, a P/E ratio of 20.59, a price-to-earnings-growth ratio of 5.31 and a beta of 1.19. The firm's 50 day simple moving average is $64.46 and its two-hundred day simple moving average is $63.72. The company has a quick ratio of 1.93, a current ratio of 1.93 and a debt-to-equity ratio of 0.16.

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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