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

Shares of Globant S.A. (NYSE:GLOB) 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.

Wall Street Analyst Weigh In

GLOB has been the subject of a number of research reports. Canaccord Genuity Group decreased their price target on Globant from $50.00 to $40.00 and set a “hold” rating for the company in a research note on Friday, May 15th. Needham & Company LLC cut their price objective on Globant from $60.00 to $50.00 and set a “buy” rating on the stock in a research note on Friday, May 15th. UBS Group decreased their target price on Globant from $75.00 to $50.00 and set a “neutral” rating for the company in a research report on Tuesday, May 5th. The Goldman Sachs Group lowered their price target on Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Finally, Susquehanna dropped 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 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 MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $64.81.

Globant Trading Up 2.6%

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

Globant (NYSE:GLOB) last announced its 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 company had revenue of $607.09 million during the quarter, compared to analysts’ expectations of $601.65 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. The business’s revenue for the quarter was down .7% on a year-over-year basis. During the same period last year, the company posted $1.50 earnings per share. On average, research analysts forecast that Globant S.A. will post 4.92 earnings per share for the current fiscal year.

Globant announced that its Board of Directors has approved a stock buyback plan on Monday, May 18th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the information technology services provider to reacquire up to 2.9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Globant

Several institutional investors and hedge funds have recently added to or reduced their stakes in GLOB. Signaturefd LLC lifted its holdings in shares of Globant by 65.1% in the fourth 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 raised its position in Globant by 473.3% during the fourth 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 during the period. Larson Financial Group LLC raised its position in 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 period. GAMMA Investing LLC lifted its position in shares of Globant by 34.3% in the fourth quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider’s stock worth $47,000 after purchasing an additional 182 shares in the last quarter. Finally, MidFirst Bank purchased a new stake in Globant in the 4th quarter worth approximately $47,000. 91.60% of the stock is currently owned by hedge funds and other 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.