Globant (NYSE:GLOB) Stock Price Down 4.3% – Here’s Why

Globant S.A. (NYSE:GLOB) shares fell 4.3% during trading on Wednesday . The company traded as low as $36.77 and last traded at $37.2980. Approximately 102,179 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 1,667,289 shares. The stock had previously closed at $38.98.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on GLOB shares. Wells Fargo & Company cut their price objective on Globant from $50.00 to $42.00 and set an “equal weight” rating on the stock in a report on Friday, July 10th. The Goldman Sachs Group dropped their target price on Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. TD Cowen cut their price target on Globant from $59.00 to $47.00 and set a “buy” rating on the stock in a research note on Thursday, July 9th. Canaccord Genuity Group reduced their price target on Globant from $50.00 to $40.00 and set a “hold” rating on the stock in a report on Friday, May 15th. Finally, Susquehanna lowered their price objective on Globant from $90.00 to $78.00 and set a “positive” rating for the company in a research note on Friday, May 15th. Six equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $52.75.

Globant Trading Down 2.3%

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 cap of $1.67 billion, a P/E ratio of 15.48, a PEG ratio of 1.45 and a beta of 1.02. The firm’s 50 day moving average is $33.80 and its two-hundred day moving average is $42.78.

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 firm had revenue of $607.09 million for the quarter, compared to the consensus estimate of $601.65 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business’s quarterly revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.50 EPS. As a group, equities research analysts anticipate that Globant S.A. will post 4.89 EPS for the current year.

Globant announced that its board has authorized a share repurchase plan 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 reacquire up to 2.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in Globant in the second quarter valued at $128,713,000. Pzena Investment Management LLC acquired a new stake in Globant during the 2nd quarter worth about $111,700,000. Alliancebernstein L.P. grew its holdings in Globant by 6,875.8% during the 2nd quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider’s stock worth $84,413,000 after acquiring an additional 915,924 shares during the period. BNP Paribas Financial Markets raised its position in shares of Globant by 601.5% in the 3rd quarter. BNP Paribas Financial Markets now owns 783,930 shares of the information technology services provider’s stock worth $44,982,000 after acquiring an additional 672,175 shares in the last quarter. Finally, Principal Financial Group Inc. raised its position in shares of Globant by 340.3% in 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 acquiring an additional 630,440 shares in the last quarter. 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.