Royal Bank of Canada Cuts Stock Position in Globant S.A. $GLOB

Royal Bank of Canada trimmed its holdings in Globant S.A. (NYSE:GLOB) by 74.4% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 454,914 shares of the information technology services provider’s stock after selling 1,322,796 shares during the period. Royal Bank of Canada owned about 1.04% of Globant worth $20,976,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in the business. Signaturefd LLC lifted its holdings in Globant by 65.1% in the 4th quarter. Signaturefd LLC now owns 482 shares of the information technology services provider’s stock worth $32,000 after purchasing an additional 190 shares in the last quarter. Allworth Financial LP grew 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 valued at $32,000 after buying an additional 407 shares in the last quarter. Larson Financial Group LLC raised its position in shares of Globant by 561.2% during the fourth quarter. Larson Financial Group LLC now owns 681 shares of the information technology services provider’s stock valued at $45,000 after buying an additional 578 shares during the last quarter. MidFirst Bank bought a new stake in shares of Globant during the fourth quarter valued at approximately $47,000. Finally, Advisors Asset Management Inc. lifted its holdings in shares of Globant by 77.4% in the fourth quarter. Advisors Asset Management Inc. now owns 912 shares of the information technology services provider’s stock worth $60,000 after buying an additional 398 shares in the last quarter. Institutional investors own 91.60% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GLOB. Needham & Company LLC reduced their price target 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. William Blair cut Globant from an “outperform” rating to a “market perform” rating in a report on Tuesday, June 30th. Itau BBA Securities lowered Globant from an “outperform” rating to a “market perform” rating and set a $39.00 price target for the company. in a research note on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft set a $33.00 price target on Globant in a report on Friday, July 10th. Finally, Susquehanna decreased their price objective on Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a report on Friday, May 15th. Six analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $52.75.

Globant Stock Performance

NYSE:GLOB opened at $38.33 on Thursday. The firm has a market capitalization of $1.68 billion, a PE ratio of 15.58, a PEG ratio of 1.44 and a beta of 1.02. The stock’s fifty day moving average is $34.09 and its 200 day moving average is $43.59. Globant S.A. has a fifty-two week low of $27.56 and a fifty-two week high of $82.71. 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 (NYSE:GLOB) last posted its quarterly earnings data on Friday, May 15th. The information technology services provider reported $1.50 EPS for the quarter, hitting the consensus estimate of $1.50. The company had revenue of $607.09 million during the quarter, compared to analyst estimates of $601.65 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. Globant’s quarterly revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.50 earnings per share. On average, sell-side analysts anticipate that Globant S.A. will post 4.89 earnings per share for the current year.

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

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.