Globant S.A. (NYSE:GLOB) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analyst sentiment on Globant is cautious: The stock has a consensus recommendation of “Hold” from 17 research firms, with 10 hold ratings, 6 buy ratings, and 1 sell rating. The average 1-year price target is about $54.63.
• Shares have been under pressure: Globant recently traded at $30.70, well below its 52-week high of $94.35 and under both its 50-day and 200-day moving averages. Its market cap is about $1.35 billion.
• Management authorized a share buyback: The board approved a $50 million stock repurchase plan, covering up to 2.9% of outstanding shares. Buybacks are often viewed as a signal that management believes the stock may be undervalued.

Globant S.A. (NYSE:GLOB - Get Free Report) has been given an average recommendation of "Hold" by the seventeen research firms that are presently covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and six have given a buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $54.6250.

A number of research analysts have recently commented on the stock. TD Cowen reduced their target price on shares of Globant from $59.00 to $47.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft set a $33.00 price target on shares of Globant in a report on Friday, July 10th. Truist Financial dropped their price target on shares of Globant from $54.00 to $44.00 and set a "hold" rating on the stock in a research note on Friday, May 15th. Needham & Company LLC cut their price objective on shares of Globant from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, May 15th. Finally, Susquehanna cut their price objective on shares of Globant from $90.00 to $78.00 and set a "positive" rating on the stock in a report on Friday, May 15th.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Signaturefd LLC grew its stake in Globant by 65.1% during the 4th quarter. Signaturefd LLC now owns 482 shares of the information technology services provider's stock valued at $32,000 after purchasing an additional 190 shares in the last quarter. Allworth Financial LP increased its holdings in Globant by 473.3% during the 4th quarter. Allworth Financial LP now owns 493 shares of the information technology services provider's stock worth $32,000 after purchasing an additional 407 shares during the last quarter. Larson Financial Group LLC raised its position in shares of Globant by 561.2% in the 4th quarter. Larson Financial Group LLC now owns 681 shares of the information technology services provider's stock valued at $45,000 after purchasing an additional 578 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Globant by 34.3% in the 4th 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 in the last quarter. Finally, MidFirst Bank purchased a new position in shares of Globant during the 4th quarter valued at approximately $47,000. Institutional investors and hedge funds own 91.60% of the company's stock.

Globant Price Performance

GLOB stock opened at $30.70 on Thursday. The firm has a market cap of $1.35 billion, a P/E ratio of 12.48, a price-to-earnings-growth ratio of 1.21 and a beta of 1.06. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82. Globant has a 1 year low of $27.56 and a 1 year high of $94.35. The stock has a 50-day simple moving average of $34.86 and a 200-day simple moving average of $45.85.

Globant (NYSE:GLOB - Get Free Report) last released its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 EPS for the quarter, hitting the consensus estimate of $1.50. The firm had revenue of $607.09 million for the quarter, compared to analyst estimates of $601.65 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.Globant's revenue for the quarter was down .7% on a year-over-year basis. During the same period in the previous year, the company posted $1.50 EPS. On average, equities analysts predict that Globant will post 4.9 earnings per share for the current fiscal 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 purchase up to 2.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

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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