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

Globant S.A. (NYSE:GLOB)’s stock price gapped down prior to trading 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 trading hands.

The information technology services provider reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.75 by ($0.39). Globant had a return on equity of 11.83% and a net margin of 6.86%. The company had revenue of $642.48 million during the quarter, compared to the consensus estimate of $644.42 million.

Analyst Ratings Changes

A number of brokerages have recently commented on GLOB. UBS Group reduced their price target on shares of Globant from $222.00 to $217.00 and set a “neutral” rating for the company in a research note on Monday, February 3rd. Scotiabank lifted their price target on shares of Globant from $210.00 to $220.00 and gave the stock a “sector perform” rating in a research note on Tuesday, November 19th. Needham & Company LLC cut their target price on shares of Globant from $265.00 to $220.00 and set a “buy” rating for the company in a research report on Friday. Piper Sandler cut their target price 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 restated a “hold” rating and set a $205.00 target price on shares of Globant in a research report on Monday, November 18th. One analyst has rated the stock with a sell rating, five have given a hold rating and thirteen have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $227.06.

Hedge Funds Weigh In On Globant

Several large investors have recently added to or reduced their stakes in the company. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its holdings in Globant by 163.4% during the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 122,500 shares of the information technology services provider’s stock valued at $26,266,000 after purchasing an additional 76,000 shares in the last quarter. Vident Advisory LLC purchased a new position in Globant during the fourth quarter valued at approximately $235,000. Teza Capital Management LLC purchased a new position in shares of Globant in the fourth quarter worth $8,650,000. Royal Bank of Canada lifted its holdings in shares of Globant by 15.4% in the fourth quarter. Royal Bank of Canada now owns 254,107 shares of the information technology services provider’s stock worth $54,486,000 after buying an additional 33,921 shares in the last quarter. Finally, Raiffeisen Bank International AG purchased a new position in shares of Globant in the fourth quarter worth $171,000. Hedge funds and other institutional investors own 91.60% of the company’s stock.

Globant Stock Down 27.7 %

The firm’s fifty day moving average price is $214.07 and its 200 day moving average price is $210.61. The stock has a market cap of $6.55 billion, a PE ratio of 40.86, a P/E/G ratio of 2.38 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.