Wells Fargo & Company Cuts Globant (NYSE:GLOB) Price Target to $42.00

Globant (NYSE:GLOB) had its target price reduced by analysts at Wells Fargo & Company from $50.00 to $42.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the information technology services provider’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 34.18% from the stock’s current price.

Several other brokerages have also recently issued reports on GLOB. Needham & Company LLC cut their price objective on Globant from $60.00 to $50.00 and set a “buy” rating on the stock in a research note on Friday, May 15th. The Goldman Sachs Group decreased their target price on Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday, May 15th. UBS Group lowered their price target on Globant from $75.00 to $50.00 and set a “neutral” rating for the company in a report on Tuesday, May 5th. Canaccord Genuity Group dropped their price target on Globant from $50.00 to $40.00 and set a “hold” rating on the stock in a research report on Friday, May 15th. Finally, Truist Financial reduced their price objective on Globant from $54.00 to $44.00 and set a “hold” rating on the stock in a research note on Friday, May 15th. Seven analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Globant currently has an average rating of “Hold” and an average target price of $61.35.

Globant Price Performance

Shares of GLOB stock opened at $31.30 on Friday. The firm has a market cap of $1.37 billion, a P/E ratio of 12.72, a P/E/G ratio of 1.10 and a beta of 1.06. 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 has a 1-year low of $27.56 and a 1-year high of $94.35. The firm has a fifty day moving average of $36.14 and a two-hundred day moving average of $48.10.

Globant (NYSE:GLOB) last released its earnings results on Friday, May 15th. The information technology services provider reported $1.50 earnings per share 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 the consensus estimate of $601.65 million. During the same quarter in the previous year, the firm earned $1.50 EPS. The company’s revenue was down .7% on a year-over-year basis. As a group, research analysts anticipate that Globant will post 4.92 earnings per share for the current fiscal year.

Globant announced that its Board of Directors has authorized a share repurchase program on Monday, May 18th that authorizes the company to buyback $50.00 million in outstanding shares. This buyback authorization authorizes the information technology services provider to purchase up to 2.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC increased its position in Globant by 34.3% in the fourth 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 period. Signaturefd LLC boosted its holdings in shares of Globant by 65.1% during the fourth quarter. Signaturefd LLC now owns 482 shares of the information technology services provider’s stock valued at $32,000 after acquiring an additional 190 shares during the period. Sanctuary Advisors LLC boosted its holdings in shares of Globant by 7.2% during the fourth quarter. Sanctuary Advisors LLC now owns 3,801 shares of the information technology services provider’s stock valued at $248,000 after acquiring an additional 255 shares during the period. CWM LLC grew its position in shares of Globant by 33.7% during the fourth quarter. CWM LLC now owns 1,151 shares of the information technology services provider’s stock worth $75,000 after acquiring an additional 290 shares during the last quarter. Finally, Parallel Advisors LLC grew its position in shares of Globant by 27.1% during the first quarter. Parallel Advisors LLC now owns 1,735 shares of the information technology services provider’s stock worth $80,000 after acquiring an additional 370 shares during the last quarter. Institutional investors and hedge funds 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.