Globant (NYSE:GLOB) Stock Price Up 5.8% – Still a Buy?

Globant S.A. (NYSE:GLOB) shares rose 5.8% on Monday . The company traded as high as $31.71 and last traded at $31.70. 250,816 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 1,675,871 shares. The stock had previously closed at $29.96.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Wedbush reaffirmed an “outperform” rating on shares of Globant in a report on Monday, May 18th. Susquehanna cut their target price on shares of Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a research report on Friday, May 15th. UBS Group decreased their target price 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. Itau BBA Securities downgraded shares of Globant from an “outperform” rating to a “market perform” rating and set a $39.00 price target for the company. in a report on Wednesday, July 8th. Finally, Canaccord Genuity Group lowered their price target on shares of Globant from $50.00 to $40.00 and set a “hold” rating for the company in a report on Friday, May 15th. Seven investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $58.18.

Globant Trading Up 7.6%

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 firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of 13.11, a P/E/G ratio of 1.10 and a beta of 1.06. The firm’s 50-day moving average is $35.92 and its 200 day moving average is $47.83.

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, meeting 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 revenue was down .7% on a year-over-year basis. During the same period in the prior year, the company posted $1.50 EPS. On average, equities analysts predict that Globant S.A. will post 4.91 earnings per share for the current fiscal year.

Globant announced that its Board of Directors has authorized a stock repurchase program on Monday, May 18th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of Globant in the first quarter valued at about $447,000. Goldman Sachs Group Inc. boosted its holdings in Globant by 69.3% in the first quarter. Goldman Sachs Group Inc. now owns 74,237 shares of the information technology services provider’s stock valued at $8,739,000 after acquiring an additional 30,386 shares during the last quarter. First Trust Advisors LP increased its position in Globant by 61.9% during the 2nd quarter. First Trust Advisors LP now owns 102,280 shares of the information technology services provider’s stock valued at $9,291,000 after purchasing an additional 39,122 shares during the period. Marshall Wace LLP increased its position in Globant by 823.2% during the 2nd quarter. Marshall Wace LLP now owns 105,894 shares of the information technology services provider’s stock valued at $9,619,000 after purchasing an additional 94,424 shares during the period. Finally, Amundi raised its holdings in Globant by 192.7% during the 2nd quarter. Amundi now owns 7,970 shares of the information technology services provider’s stock worth $727,000 after purchasing an additional 5,247 shares during the last quarter. 91.60% of the stock is owned by institutional investors.

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.