Globant (NYSE:GLOB) Board Declares Share Repurchase Program

Globant (NYSE:GLOB) announced that its Board of Directors has approved a share repurchase plan on Monday, May 18th, RTT News reports. The company plans to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to reacquire up to 2.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Globant Stock Performance

Shares of NYSE:GLOB traded up $0.98 during trading on Monday, reaching $39.89. 2,399,226 shares of the company’s stock traded hands, compared to its average volume of 1,872,731. The stock has a market capitalization of $1.75 billion, a P/E ratio of 16.21, a price-to-earnings-growth ratio of 1.43 and a beta of 1.04. The company has a 50 day moving average of $44.30 and a 200-day moving average of $55.74. Globant has a 12 month low of $32.50 and a 12 month high of $107.12. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.82 and a quick ratio of 1.82.

Globant (NYSE:GLOB) last announced its quarterly earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share (EPS) 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 for the quarter, compared to the consensus estimate of $601.66 million. During the same quarter last year, the business posted $1.50 EPS. The business’s revenue was down .7% on a year-over-year basis. On average, equities analysts expect that Globant will post 4.99 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. The Goldman Sachs Group dropped their price objective on Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday. TD Cowen cut their target price on Globant from $74.00 to $72.00 and set a “buy” rating on the stock in a research report on Monday, April 6th. Susquehanna reduced their price target on shares of Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a research report on Friday. Guggenheim decreased their target price on Globant from $80.00 to $65.00 and set a “buy” rating for the company in a research report on Monday, February 23rd. Finally, Wells Fargo & Company decreased their target price on shares of Globant from $57.00 to $50.00 and set an “equal weight” rating for the company in a research note on Friday, March 27th. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $64.81.

Globant Company Profile

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.