Globant (NYSE:GLOB) Share Price Crosses Below 200-Day Moving Average – Should You Sell?

Globant S.A. (NYSE:GLOB) crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $46.09 and traded as low as $31.29. Globant shares last traded at $32.1390, with a volume of 1,073,515 shares.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on GLOB shares. Wells Fargo & Company decreased their price objective on shares of Globant from $50.00 to $42.00 and set an “equal weight” rating on the stock in a report on Friday, July 10th. Deutsche Bank Aktiengesellschaft set a $33.00 price target on shares of Globant in a research report on Friday, July 10th. UBS Group decreased their price target on shares of Globant from $75.00 to $50.00 and set a “neutral” rating on the stock in a research note on Tuesday, May 5th. Susquehanna lowered 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. Finally, TD Cowen cut their price objective on Globant from $59.00 to $47.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Six 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. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $54.62.

Globant Price Performance

The stock’s 50-day moving average price is $34.86 and its 200 day moving average price is $45.85. 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 market capitalization of $1.34 billion, a price-to-earnings ratio of 12.45, a PEG ratio of 1.21 and a beta of 1.06.

Globant (NYSE:GLOB) last posted its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.50. Globant had a net margin of 4.46% and a return on equity of 9.87%. The firm had revenue of $607.09 million for the quarter, compared to analyst estimates of $601.65 million. During the same period in the previous year, the business posted $1.50 earnings per share. Globant’s quarterly revenue was down .7% on a year-over-year basis. Equities research analysts expect that Globant S.A. will post 4.9 earnings per share for the current fiscal year.

Globant declared that its board has approved a stock repurchase program on Monday, May 18th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to buy up to 2.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Institutional Trading of Globant

A number of hedge funds and other institutional investors have recently made changes to their positions in GLOB. Pzena Investment Management LLC acquired a new stake in shares of Globant during the 1st quarter worth about $136,893,000. Alliancebernstein L.P. boosted its stake in shares of Globant by 6,875.8% in the second quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider’s stock valued at $84,413,000 after purchasing an additional 915,924 shares during the period. BNP Paribas Financial Markets grew its holdings in shares of Globant by 601.5% in the third quarter. BNP Paribas Financial Markets now owns 783,930 shares of the information technology services provider’s stock valued at $44,982,000 after purchasing an additional 672,175 shares in the last quarter. Principal Financial Group Inc. increased its stake in Globant by 340.3% during the 4th quarter. Principal Financial Group Inc. now owns 815,703 shares of the information technology services provider’s stock worth $53,323,000 after buying an additional 630,440 shares during the period. Finally, Two Sigma Investments LP increased its stake in Globant by 493.8% during the 3rd quarter. Two Sigma Investments LP now owns 660,296 shares of the information technology services provider’s stock worth $37,888,000 after buying an additional 549,089 shares during the period. 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.