Globant (NYSE:GLOB) Shares Gap Up – Here’s What Happened

Globant S.A. (NYSE:GLOB)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $30.95, but opened at $32.33. Globant shares last traded at $31.46, with a volume of 119,357 shares traded.

Analyst Ratings Changes

Several brokerages have issued reports on GLOB. Wedbush reissued an “outperform” rating on shares of Globant in a report on Monday, May 18th. Susquehanna cut their target price on Globant from $90.00 to $78.00 and set a “positive” rating for the company in a research report on Friday, May 15th. TD Cowen decreased their price target on Globant from $74.00 to $72.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Needham & Company LLC lowered their price target on Globant from $60.00 to $50.00 and set a “buy” rating on the stock in a research report on Friday, May 15th. Finally, William Blair lowered Globant from an “outperform” rating to a “market perform” rating in a research note on Tuesday, June 30th. Seven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Globant presently has an average rating of “Hold” and a consensus price target of $64.81.

Globant Stock Up 2.6%

The company has a market cap of $1.39 billion, a P/E ratio of 12.91, a PEG ratio of 1.19 and a beta of 1.06. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.16. The firm has a fifty day moving average price of $36.80 and a 200 day moving average price of $48.88.

Globant (NYSE:GLOB) last issued 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 net margin of 4.46% and a return on equity of 9.87%. The business had revenue of $607.09 million for the quarter, compared to the consensus estimate of $601.65 million. During the same quarter in the prior year, the company earned $1.50 EPS. The firm’s quarterly revenue was down .7% on a year-over-year basis. Equities research analysts forecast that Globant S.A. will post 4.92 earnings per share for the current year.

Globant declared that its Board of Directors has authorized a share buyback program on Monday, May 18th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the information technology services provider to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Institutional Trading of Globant

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Maxi Investments CY Ltd bought a new stake in Globant during the 4th quarter worth about $2,255,000. Principal Financial Group Inc. increased its position in shares of Globant by 340.3% in the 4th quarter. Principal Financial Group Inc. now owns 815,703 shares of the information technology services provider’s stock valued at $53,323,000 after buying an additional 630,440 shares in the last quarter. Citizens Financial Group Inc. RI acquired a new stake in shares of Globant during the fourth quarter worth about $5,095,000. Bank of Nova Scotia lifted its stake in Globant by 9,602.6% in the third quarter. Bank of Nova Scotia now owns 378,400 shares of the information technology services provider’s stock valued at $21,713,000 after buying an additional 374,500 shares in the last quarter. Finally, Circumference Group LLC acquired a new stake in shares of Globant during the third quarter worth $1,607,000. Institutional investors and hedge funds own 91.60% of the company’s stock.

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.