Globant (NYSE:GLOB) Shares Up 5.8% – Should You Buy?

Globant S.A. (NYSE:GLOB) shares were up 5.8% on Monday . The company traded as high as $31.71 and last traded at $31.70. Approximately 250,816 shares traded hands during trading, a decline of 85% from the average daily volume of 1,675,871 shares. The stock had previously closed at $29.96.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on GLOB shares. William Blair downgraded Globant from an “outperform” rating to a “market perform” rating in a research note on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft set a $33.00 price objective on Globant in a report on Friday. Itau BBA Securities lowered Globant from an “outperform” rating to a “market perform” rating and set a $39.00 target price on the stock. in a research note on Wednesday, July 8th. TD Cowen reduced their target price on Globant from $59.00 to $47.00 and set a “buy” rating on the stock in a report on Thursday, July 9th. Finally, Susquehanna reduced their target price on Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a report on Friday, May 15th. Seven research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $58.18.

Globant Trading Down 3.5%

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 company has a market capitalization of $1.36 billion, a P/E ratio of 12.60, a price-to-earnings-growth ratio of 1.18 and a beta of 1.06. The business has a fifty day moving average price of $35.56 and a 200 day moving average price of $47.32.

Globant (NYSE:GLOB) last posted its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $601.65 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. The firm’s revenue was down .7% compared to the same quarter last year. During the same period last year, the company earned $1.50 earnings per share. On average, analysts expect that Globant S.A. will post 4.91 earnings per share for the current fiscal year.

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

Institutional Investors Weigh In On Globant

Several institutional investors have recently made changes to their positions in GLOB. Pzena Investment Management LLC bought a new position in Globant in the first quarter valued at approximately $136,893,000. Brandes Investment Partners LP lifted its stake 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 purchasing an additional 91,732 shares during the last quarter. Capital International Investors boosted its holdings in shares of Globant by 10.6% in the 4th quarter. Capital International Investors now owns 2,283,802 shares of the information technology services provider’s stock valued at $149,292,000 after purchasing an additional 218,570 shares in the last quarter. Royal Bank of Canada boosted its holdings in shares of Globant by 8.5% in 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 in the last quarter. Finally, Wasatch Advisors LP increased its stake in shares of Globant by 19.0% in 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 currently 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.