Globant (NYSE:GLOB) Shares Gap Down Following Weak Earnings

Globant S.A. (NYSE:GLOB)’s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $210.17, but opened at $187.23. Globant shares last traded at $161.38, with a volume of 1,054,051 shares changing hands.

The information technology services provider reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.75 by ($0.39). Globant had a net margin of 7.20% and a return on equity of 11.65%. The company had revenue of $642.48 million for the quarter, compared to the consensus estimate of $644.42 million.

Analyst Ratings Changes

A number of equities research analysts have weighed in on GLOB shares. Jefferies Financial Group lifted their target price on Globant from $240.00 to $255.00 and gave the stock a “buy” rating in a report on Tuesday, January 21st. StockNews.com raised Globant from a “sell” rating to a “hold” rating in a research note on Sunday, November 24th. Needham & Company LLC decreased their price objective on Globant from $265.00 to $220.00 and set a “buy” rating for the company in a report on Friday. Piper Sandler reduced their price target on shares of Globant from $237.00 to $230.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Canaccord Genuity Group reiterated a “hold” rating and issued a $205.00 target price on shares of Globant in a research note on Monday, November 18th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $227.39.

Institutional Trading of Globant

A number of institutional investors have recently modified their holdings of GLOB. Equitable Trust Co. increased its position in shares of Globant by 1.1% during the third quarter. Equitable Trust Co. now owns 4,550 shares of the information technology services provider’s stock valued at $902,000 after buying an additional 50 shares during the period. M&T Bank Corp lifted its holdings in Globant by 3.8% in the 3rd quarter. M&T Bank Corp now owns 1,641 shares of the information technology services provider’s stock worth $326,000 after buying an additional 60 shares during the period. Franklin Resources Inc. boosted its holdings in Globant by 0.6% in the third quarter. Franklin Resources Inc. now owns 12,800 shares of the information technology services provider’s stock valued at $2,704,000 after acquiring an additional 71 shares in the last quarter. Congress Wealth Management LLC DE increased its position in shares of Globant by 2.9% during the fourth quarter. Congress Wealth Management LLC DE now owns 2,683 shares of the information technology services provider’s stock valued at $575,000 after buying an additional 76 shares during the period. Finally, Signaturefd LLC grew its holdings in shares of Globant by 46.0% during the 3rd quarter. Signaturefd LLC now owns 292 shares of the information technology services provider’s stock worth $58,000 after acquiring an additional 92 shares during the period. 91.60% of the stock is currently owned by hedge funds and other institutional investors.

Globant Stock Down 24.0 %

The company’s fifty day moving average price is $215.37 and its 200-day moving average price is $210.82. The stock has a market capitalization of $6.88 billion, a PE ratio of 41.91, a price-to-earnings-growth ratio of 2.46 and a beta of 1.39.

About Globant

Globant SA, together with its subsidiaries, provides technology services worldwide. It provides digital solutions comprising blockchain, cloud technologies, cybersecurity, data and artificial intelligence, digital experience and performance, code, Internet of Things, metaverse, and engineering and testing; and enterprise technology solutions and services, such as Agile organization, Cultural Hacking, process optimization services, as well as AWS, Google Cloud, Microsoft, Oracle, SalesForce, SAP, and ServiceNow technology solutions.