Globant (NYSE:GLOB) Stock Price Up 8% – Here’s What Happened

Shares of Globant S.A. (NYSE:GLOB) rose 8% on Wednesday . The stock traded as high as $31.19 and last traded at $31.2480. Approximately 753,544 shares changed hands during trading, a decline of 54% from the average session volume of 1,638,612 shares. The stock had previously closed at $28.94.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. UBS Group decreased their price target on Globant from $75.00 to $50.00 and set a “neutral” rating on the stock in a research note on Tuesday, May 5th. Wedbush reissued an “outperform” rating on shares of Globant in a research note on Monday, May 18th. William Blair cut shares of Globant from an “outperform” rating to a “market perform” rating in a report on Tuesday. Wells Fargo & Company lowered their price target on shares of Globant from $57.00 to $50.00 and set an “equal weight” rating for the company in a report on Friday, March 27th. Finally, The Goldman Sachs Group dropped their price target on shares of Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Globant presently has an average rating of “Hold” and a consensus target price of $64.81.

Globant Trading Up 9.8%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82. The firm has a market capitalization of $1.39 billion, a PE ratio of 12.92, a P/E/G ratio of 1.10 and a beta of 1.02. The stock’s 50-day simple moving average is $38.10 and its 200-day simple moving average is $49.88.

Globant (NYSE:GLOB) last posted 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 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 company’s quarterly revenue was down .7% compared to the same quarter last year. During the same period last year, the company posted $1.50 EPS. As a group, sell-side analysts expect that Globant S.A. will post 4.94 EPS for the current fiscal year.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in GLOB. Maxi Investments CY Ltd purchased a new position in shares of Globant during the fourth quarter valued at approximately $2,255,000. Principal Financial Group Inc. grew its stake 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 buying an additional 630,440 shares during the last quarter. Citizens Financial Group Inc. RI bought a new position in Globant during the 4th quarter valued at approximately $5,095,000. Bank of Nova Scotia raised its stake in Globant by 9,602.6% during the third quarter. Bank of Nova Scotia now owns 378,400 shares of the information technology services provider’s stock valued at $21,713,000 after buying an additional 374,500 shares during the last quarter. Finally, Circumference Group LLC purchased a new position in Globant during the third quarter valued at $1,607,000. Hedge funds and other institutional investors own 91.60% of the company’s stock.

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.