Globant (NYSE:GLOB) Reaches New 52-Week Low After Earnings Miss

Globant S.A. (NYSE:GLOB)’s share price reached a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $88.03 and last traded at $93.43, with a volume of 2791402 shares traded. The stock had previously closed at $132.84.

The information technology services provider reported $1.50 EPS for the quarter, missing the consensus estimate of $1.58 by ($0.08). The company had revenue of $611.09 million during the quarter, compared to analysts’ expectations of $622.18 million. Globant had a return on equity of 11.83% and a net margin of 6.86%. The business’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period last year, the company earned $1.53 earnings per share.

Analyst Upgrades and Downgrades

GLOB has been the subject of several analyst reports. The Goldman Sachs Group downgraded Globant from a “buy” rating to a “neutral” rating and set a $120.00 price objective for the company. in a research note on Friday. StockNews.com downgraded Globant from a “hold” rating to a “sell” rating in a research note on Sunday, May 11th. Piper Sandler downgraded Globant from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $154.00 to $116.00 in a research report on Friday. Redburn Atlantic raised Globant from a “sell” rating to a “neutral” rating and increased their price target for the company from $140.00 to $150.00 in a research report on Tuesday, February 25th. Finally, Guggenheim decreased their price target on Globant from $150.00 to $125.00 and set a “buy” rating for the company in a research report on Friday. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $186.24.

Hedge Funds Weigh In On Globant

Institutional investors and hedge funds have recently bought and sold shares of the company. Brooklyn Investment Group grew its holdings in Globant by 194.4% during the first quarter. Brooklyn Investment Group now owns 212 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 140 shares during the period. Physician Wealth Advisors Inc. grew its holdings in Globant by 140.9% during the first quarter. Physician Wealth Advisors Inc. now owns 265 shares of the information technology services provider’s stock valued at $31,000 after purchasing an additional 155 shares during the period. Centricity Wealth Management LLC bought a new position in Globant during the fourth quarter valued at $38,000. Kestra Investment Management LLC bought a new position in Globant during the fourth quarter valued at $38,000. Finally, Bessemer Group Inc. bought a new position in Globant during the first quarter valued at $39,000. 91.60% of the stock is owned by institutional investors.

Globant Price Performance

The stock has a fifty day moving average price of $118.69 and a 200 day moving average price of $177.42. The stock has a market capitalization of $4.43 billion, a P/E ratio of 27.04, a price-to-earnings-growth ratio of 2.38 and a beta of 1.37.

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.