Globant (NYSE:GLOB) Trading 6.7% Higher – What’s Next?

Shares of Globant S.A. (NYSE:GLOB) shot up 6.7% during trading on Tuesday . The stock traded as high as $34.67 and last traded at $34.8140. 168,325 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 1,661,364 shares. The stock had previously closed at $32.64.

Analyst Ratings Changes

Several brokerages have weighed in on GLOB. William Blair cut Globant from an “outperform” rating to a “market perform” rating in a report on Tuesday, June 30th. Truist Financial reduced their target price on Globant from $54.00 to $44.00 and set a “hold” rating on the stock in a report on Friday, May 15th. Citigroup decreased their price target on Globant from $42.00 to $37.00 and set a “neutral” rating on the stock in a research report on Monday. Canaccord Genuity Group dropped 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. Finally, UBS Group cut their price objective on shares of Globant from $75.00 to $50.00 and set a “neutral” rating for the company in a research report on Tuesday, May 5th. Six investment 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $52.75.

Globant Stock Performance

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 company has a market cap of $1.68 billion, a P/E ratio of 15.54, a price-to-earnings-growth ratio of 1.32 and a beta of 1.06. The company has a 50 day moving average price of $34.32 and a 200-day moving average price of $44.64.

Globant (NYSE:GLOB) last announced its quarterly earnings data on Friday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, hitting the consensus estimate of $1.50. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business had revenue of $607.09 million during the quarter, compared to the consensus estimate of $601.65 million. During the same period in the prior year, the company earned $1.50 EPS. Globant’s revenue for the quarter was down .7% on a year-over-year basis. On average, equities analysts expect that Globant S.A. will post 4.9 earnings per share for the current fiscal year.

Globant announced that its board has authorized a share repurchase 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 repurchase up to 2.9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Globant

Several institutional investors and hedge funds have recently added to or reduced their stakes in GLOB. Legacy Wealth Asset Management LLC bought a new stake in shares of Globant during the second quarter worth $491,000. Parallel Advisors LLC increased its holdings in shares of Globant by 27.1% during the first quarter. Parallel Advisors LLC now owns 1,735 shares of the information technology services provider’s stock worth $80,000 after buying an additional 370 shares in the last quarter. Essential Partners LLC bought a new position in shares of Globant in the 1st quarter valued at $55,000. Bank of America Corp DE lifted its stake in shares of Globant by 12.9% in the 1st quarter. Bank of America Corp DE now owns 413,210 shares of the information technology services provider’s stock valued at $19,053,000 after acquiring an additional 47,110 shares during the last quarter. Finally, Bull Harbor Capital LLC acquired a new stake in shares of Globant during the 1st quarter valued at $205,000. Institutional investors 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.