Globant (NYSE:GLOB) Hits New 1-Year Low – Here’s What Happened

Globant S.A. (NYSE:GLOB)’s share price reached a new 52-week low on Thursday . The stock traded as low as $30.28 and last traded at $32.0810, with a volume of 483527 shares changing hands. The stock had previously closed at $34.61.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on GLOB. Mizuho lowered their target price on Globant from $91.00 to $76.00 and set an “outperform” rating on the stock in a report on Tuesday, March 3rd. Guggenheim lowered their target price on Globant from $80.00 to $65.00 and set a “buy” rating on the stock in a report on Monday, February 23rd. UBS Group lowered their target price on Globant from $75.00 to $50.00 and set a “neutral” rating on the stock in a report on Tuesday, May 5th. The Goldman Sachs Group lowered their target price on Globant from $68.00 to $60.00 and set a “neutral” rating on the stock in a report on Friday, May 15th. Finally, Wedbush reissued an “outperform” rating on shares of Globant in a report on Monday, May 18th. Eight equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $64.81.

Globant Trading Down 8.8%

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 firm has a market cap of $1.38 billion, a price-to-earnings ratio of 12.82, a price-to-earnings-growth ratio of 1.34 and a beta of 1.02. The business has a 50 day moving average of $41.20 and a 200 day moving average of $52.30.

Globant (NYSE:GLOB) last posted its quarterly earnings data on Friday, May 15th. The information technology services provider reported $1.50 EPS for the quarter, meeting analysts’ consensus estimates of $1.50. The business had revenue of $607.09 million for the quarter, compared to analyst estimates of $601.66 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business’s revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter last year, the company earned $1.50 earnings per share. On average, research analysts forecast that Globant S.A. will post 4.94 earnings per share for the current fiscal year.

Globant announced that its Board of Directors has initiated a share 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 purchase up to 2.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Institutional Trading of Globant

Hedge funds have recently added to or reduced their stakes in the business. Signaturefd LLC boosted its stake in Globant by 65.1% in the 4th quarter. Signaturefd LLC now owns 482 shares of the information technology services provider’s stock worth $32,000 after buying an additional 190 shares during the last quarter. Allworth Financial LP boosted its stake in Globant by 473.3% in the 4th quarter. Allworth Financial LP now owns 493 shares of the information technology services provider’s stock worth $32,000 after buying an additional 407 shares during the last quarter. Larson Financial Group LLC boosted its stake in Globant by 561.2% in the 4th quarter. Larson Financial Group LLC now owns 681 shares of the information technology services provider’s stock worth $45,000 after buying an additional 578 shares during the last quarter. GAMMA Investing LLC boosted its stake in Globant by 34.3% in the 4th quarter. GAMMA Investing LLC now owns 712 shares of the information technology services provider’s stock worth $47,000 after buying an additional 182 shares during the last quarter. Finally, MidFirst Bank acquired a new stake in Globant in the 4th quarter worth about $47,000. 91.60% of the stock is owned by institutional investors and hedge funds.

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.