Globant (NYSE:GLOB) Stock Rating Upgraded by Itau BBA Securities

Key Points

• Globant was upgraded to a “hold” by Itau BBA Securities, adding to a mixed analyst backdrop that currently shows a consensus “Hold” rating on the stock.
• Several firms have cut price targets recently, including TD Cowen, Goldman Sachs, Wells Fargo, and Canaccord Genuity, reflecting cautious sentiment around the shares.
• Globant reported Q1 earnings in line with expectations at $1.50 per share and announced a $50 million share repurchase program, which management may see as a sign the stock is undervalued.

Globant (NYSE:GLOB - Get Free Report) was upgraded by research analysts at Itau BBA Securities to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

GLOB has been the topic of several other reports. TD Cowen dropped their target price on shares of Globant from $59.00 to $47.00 and set a "buy" rating on the stock in a report on Thursday. The Goldman Sachs Group reduced their price target on shares of Globant from $68.00 to $60.00 and set a "neutral" rating for the company in a report on Friday, May 15th. Wells Fargo & Company lowered their price objective on shares of Globant from $57.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday, March 27th. Wedbush restated an "outperform" rating on shares of Globant in a report on Monday, May 18th. Finally, Canaccord Genuity Group cut their price objective on shares of Globant from $50.00 to $40.00 and set a "hold" rating on the stock in a research report on Friday, May 15th. Seven investment 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. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $61.82.

Globant Stock Performance

GLOB stock opened at $31.30 on Tuesday. Globant has a 1-year low of $27.56 and a 1-year high of $94.35. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.16. The firm has a market cap of $1.37 billion, a PE ratio of 12.72, a P/E/G ratio of 1.10 and a beta of 1.06. The business's 50-day moving average price is $36.14 and its two-hundred day moving average price is $48.10.

Globant (NYSE:GLOB - Get Free Report) last announced its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.50. Globant had a return on equity of 9.87% and a net margin of 4.46%.The company had revenue of $607.09 million during the quarter, compared to the consensus estimate of $601.65 million. During the same period in the prior year, the company earned $1.50 earnings per share. The company's revenue for the quarter was down .7% compared to the same quarter last year. As a group, research analysts forecast that Globant will post 4.92 earnings per share for the current year.

Globant announced that its Board of Directors has approved a share repurchase plan on Monday, May 18th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the information technology services provider to buy up to 2.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of GLOB. Legacy Wealth Asset Management LLC acquired a new stake in Globant in the 2nd quarter valued at about $491,000. Parallel Advisors LLC raised its stake in Globant by 27.1% in the first quarter. Parallel Advisors LLC now owns 1,735 shares of the information technology services provider's stock valued at $80,000 after buying an additional 370 shares during the period. Essential Partners LLC bought a new stake in Globant in the first quarter valued at approximately $55,000. Bank of America Corp DE lifted its position in shares of Globant by 12.9% in the first quarter. Bank of America Corp DE now owns 413,210 shares of the information technology services provider's stock valued at $19,053,000 after buying an additional 47,110 shares during the last quarter. Finally, Bull Harbor Capital LLC acquired a new stake in shares of Globant in the first quarter valued at approximately $205,000. 91.60% of the stock is currently owned by institutional investors and hedge funds.

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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