Globant (NYSE:GLOB) Sets New 12-Month Low – Time to Sell?

Globant S.A. (NYSE:GLOB)’s stock price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $27.83 and last traded at $28.6060, with a volume of 262484 shares traded. The stock had previously closed at $29.12.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on GLOB shares. Wells Fargo & Company reduced their price target on shares of Globant from $57.00 to $50.00 and set an “equal weight” rating for the company in a research report on Friday, March 27th. Mizuho cut their target price on shares of Globant from $91.00 to $76.00 and set an “outperform” rating for the company in a research report on Tuesday, March 3rd. Needham & Company LLC cut their target price on shares of Globant from $60.00 to $50.00 and set a “buy” rating for the company in a research report on Friday, May 15th. Wedbush reaffirmed an “outperform” rating on shares of Globant in a report on Monday, May 18th. Finally, Susquehanna decreased 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, May 15th. Eight analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Globant currently has a consensus rating of “Hold” and a consensus price target of $64.81.

Globant Trading Down 3.4%

The stock has a 50-day moving average price of $39.66 and a two-hundred day moving average price of $51.02. The stock has a market capitalization of $1.23 billion, a PE ratio of 11.37, a PEG ratio of 1.07 and a beta of 1.02. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82.

Globant (NYSE:GLOB) last released its 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 net margin of 4.46% and a return on equity of 9.87%. The company had revenue of $607.09 million during the quarter, compared to analyst estimates of $601.65 million. During the same period in the prior year, the firm posted $1.50 EPS. The firm’s quarterly revenue was down .7% compared to the same quarter last year. As a group, equities analysts forecast that Globant S.A. will post 4.94 earnings per share for the current year.

Globant declared that its board has authorized a share buyback program on Monday, May 18th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the information technology services provider to repurchase up to 2.9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Institutional Trading of Globant

Several institutional investors and hedge funds have recently modified their holdings of the company. Maxi Investments CY Ltd bought a new stake in Globant during the fourth quarter valued at about $2,255,000. Principal Financial Group Inc. boosted its stake in shares of Globant by 340.3% in the fourth 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 during the period. Citigroup Inc. boosted its stake in shares of Globant by 106.7% in the third quarter. Citigroup Inc. now owns 324,199 shares of the information technology services provider’s stock worth $18,603,000 after acquiring an additional 167,341 shares during the period. Citizens Financial Group Inc. RI purchased a new stake in shares of Globant during the fourth quarter worth about $5,095,000. Finally, Bank of Nova Scotia grew its position in shares of 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 worth $21,713,000 after purchasing an additional 374,500 shares in the last quarter. 91.60% of the stock is currently owned by institutional investors.

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.