Globant S.A. (GLOB) – Don’t Be So Quick to Call it Dead

Globant S.A. (NYSE: GLOB) is 53.32% higher on its value in year-to-date trading and has touched a low of $70.83 and a high of $168.30 in the current 52-week trading range. The GLOB stock was last observed hovering at around $158.88 in the last trading session, with the day’s gains setting it 3.72% off its average median price target of $152.00 for the next 12 months. It is also 2.63% off the consensus price target high of $167.00 offered by 11 analysts, but current levels are -100.74% lower than the price target low of $81.00 for the same period.

Currently trading at $162.60, the stock is 6.50% and 14.53% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 0.2 million and changing 2.34% at the moment leaves the stock 42.55% off its SMA200. GLOB registered 53.30% gain for a year compared to 6-month gain of 39.38%. The firm has a 50-day simple moving average (SMA 50) of $149.02 and a 200-day simple moving average (SMA200) of $121.21.

The stock witnessed a 12.00% loss in the last 1 month and extending the period to 3 months gives it a 57.83%, and is -1.42% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 4.78% over the week and 4.26% over the month.

Globant S.A. (GLOB) has around 12538 employees, a market worth around $6.28B and $704.70M in sales. Current P/E ratio is 111.75 and Fwd P/E is 51.21. Profit margin for the company is 7.80%. Distance from 52-week low is 129.56% and -3.39% from its 52-week high. The company has generated returns on investments over the last 12 months (12.20%).

Globant S.A. (GLOB) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Globant S.A. (GLOB) is a “Overweight”. 11 analysts offering their recommendations for the stock have an average rating of 2.30, where 3 rate it as a Hold and 0 think it is a “Overweight”. 7 of the analysts rate the stock as a “Buy”. 1 analysts have rated the stock as a Sell or Underperform.

Globant S.A. is expected to release its quarterly report on 08/13/2020 and quarterly earnings per share for the current quarter are estimated at $0.5 with sales reaching $178.74M over the same period.The EPS is expected to grow by 1.80% this year, but quarterly earnings will post 15.40% year-over-year. Quarterly sales are estimated to grow 13.50% in year-over-year returns.

Globant S.A. (GLOB) Top Institutional Holders

382 institutions hold shares in Globant S.A. (GLOB), with 1.23M shares held by insiders accounting for 3.31% while institutional investors hold 102.49% of the company’s shares. The shares outstanding are 37.01M, and float is at 33.47M with Short Float at 4.53%. Institutions hold 99.09% of the Float.

The top institutional shareholder in the company is Wasatch Advisors Inc with over 2.54 million shares valued at $222.86 million. The investor’s holdings represent 7.07% of the GLOB Shares outstanding. As of Mar 30, 2020, the second largest holder is Morgan Stanley with 1.85 million shares valued at $162.59 million to account for 5.15% of the shares outstanding. The other top investors are Blackrock Inc. which holds 1.84 million shares representing 5.14% and valued at over $162.1 million, while Riverbridge Partners LLC holds 3.94% of the shares totaling 1.41 million with a market value of $211.65 million.

Globant S.A. (GLOB): Who are the competitors?

The company’s main competitors (and peers) include NetScout Systems Inc. (NTCT) that is trading 4.56% up over the past 12 months. Workiva Inc. (WK) is -9.12% down on the 1-year trading charts. Short interest in the company’s stock has risen 19.26% from the last report on May 28, 2020 to stand at a total of 1.97 million short shares sold with a short interest ratio of 3.66.