Globant (NYSE:GLOB) Shares Gap Down – Here’s Why

Globant S.A. (NYSE:GLOB)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $32.12, but opened at $30.34. Globant shares last traded at $31.75, with a volume of 191,371 shares traded.

Analyst Ratings Changes

A number of brokerages recently weighed in on GLOB. 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 research report on Friday, May 15th. Canaccord Genuity Group cut their target price on Globant from $50.00 to $40.00 and set a “hold” rating on the stock in a research report on Friday, May 15th. TD Cowen reduced their target price on Globant from $59.00 to $47.00 and set a “buy” rating for the company in a report on Thursday, July 9th. Wells Fargo & Company decreased their target price on Globant from $50.00 to $42.00 and set an “equal weight” rating for the company in a research report on Friday, July 10th. Finally, Susquehanna cut their price target on Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a research report on Friday, May 15th. Seven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $58.18.

Globant Stock Up 2.7%

The firm has a market capitalization of $1.39 billion, a PE ratio of 12.91, a PEG ratio of 1.16 and a beta of 1.06. The business’s fifty day moving average price is $35.38 and its 200 day moving average price is $47.07. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.16.

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, meeting the consensus estimate of $1.50. The firm had revenue of $607.09 million for the quarter, compared to analysts’ expectations of $601.65 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The firm’s revenue for the quarter was down .7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.50 EPS. On average, equities research analysts forecast that Globant S.A. will post 4.9 earnings per share for the current fiscal year.

Globant declared that its board has initiated a share buyback plan on Monday, May 18th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Globant

Several hedge funds have recently modified their holdings of the stock. Signaturefd LLC increased its stake in Globant by 65.1% in the 4th quarter. Signaturefd LLC now owns 482 shares of the information technology services provider’s stock valued at $32,000 after buying an additional 190 shares during the period. Allworth Financial LP lifted its stake in shares of Globant by 473.3% in the 4th quarter. Allworth Financial LP now owns 493 shares of the information technology services provider’s stock worth $32,000 after acquiring an additional 407 shares during the period. Larson Financial Group LLC boosted its holdings in shares of Globant by 561.2% in the fourth quarter. Larson Financial Group LLC now owns 681 shares of the information technology services provider’s stock valued at $45,000 after acquiring an additional 578 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of Globant by 34.3% during the fourth quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider’s stock worth $47,000 after acquiring an additional 182 shares during the period. Finally, MidFirst Bank acquired a new position in shares of Globant during the fourth quarter worth about $47,000. 91.60% of the stock is 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.