Globant (NYSE:GLOB) Trading Up 6.7% - What's Next?

Key Points

• Globant shares rose 6.7% to approximately $34.81, although trading volume was 90% below the average session volume.
• Analyst sentiment remains mixed: six analysts rate the stock Buy, 10 Hold and one Sell, producing a consensus “Hold” rating and a $52.75 average price target.
• Globant met quarterly EPS expectations at $1.50 and exceeded revenue estimates with $607.09 million, while revenue declined 0.7% year over year. The company also authorized a $50 million share buyback, covering up to 2.9% of shares.

Globant S.A. (NYSE:GLOB - Get Free Report) shares traded up 6.7% on Tuesday . The company traded as high as $34.67 and last traded at $34.8140. Approximately 168,325 shares traded hands during trading, a decline of 90% from the average session volume of 1,661,364 shares. The stock had previously closed at $32.64.

Wall Street Analyst Weigh In

GLOB has been the subject of several recent research reports. Susquehanna lowered their price target on Globant from $90.00 to $78.00 and set a "positive" rating for the company in a research note on Friday, May 15th. The Goldman Sachs Group cut their price objective on shares of Globant from $68.00 to $60.00 and set a "neutral" rating on the stock in a research report on Friday, May 15th. TD Cowen reduced their target price on shares of Globant from $59.00 to $47.00 and set a "buy" rating for the company in a research note on Thursday, July 9th. Itau BBA Securities downgraded shares of Globant from an "outperform" rating to a "market perform" rating and set a $39.00 target price for the company. in a research report on Wednesday, July 8th. Finally, William Blair lowered shares of Globant from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Six research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $52.75.

Globant Stock Up 9.3%

The stock has a market cap of $1.56 billion, a P/E ratio of 14.50, a P/E/G ratio of 1.18 and a beta of 1.06. 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's fifty day moving average is $34.50 and its 200 day moving average is $45.11.

Globant (NYSE:GLOB - Get Free Report) last released its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.50. The company had revenue of $607.09 million during the quarter, compared to analysts' expectations of $601.65 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. The business's quarterly revenue was down .7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.50 earnings per share. As a group, equities research analysts forecast that Globant S.A. will post 4.9 EPS for the current year.

Globant announced that its Board of Directors has authorized a stock repurchase plan on Monday, May 18th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the information technology services provider to reacquire up to 2.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Pzena Investment Management LLC acquired a new position in shares of Globant during the first quarter worth approximately $136,893,000. Brandes Investment Partners LP increased its position in Globant by 4.0% during the fourth quarter. Brandes Investment Partners LP now owns 2,400,732 shares of the information technology services provider's stock worth $156,936,000 after acquiring an additional 91,732 shares during the period. Capital International Investors increased its position in Globant by 10.6% during the fourth quarter. Capital International Investors now owns 2,283,802 shares of the information technology services provider's stock worth $149,292,000 after acquiring an additional 218,570 shares during the period. Royal Bank of Canada raised its stake in Globant by 8.5% during the 4th quarter. Royal Bank of Canada now owns 1,777,710 shares of the information technology services provider's stock valued at $116,209,000 after purchasing an additional 138,596 shares during the last quarter. Finally, Wasatch Advisors LP raised its stake in Globant by 19.0% during the 4th quarter. Wasatch Advisors LP now owns 1,243,309 shares of the information technology services provider's stock valued at $81,275,000 after purchasing an additional 198,318 shares during the last quarter. 91.60% of the stock is owned by institutional investors.

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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