Banco BTG Pactual S.A. Grows Stock Holdings in Globant S.A. $GLOB

Banco BTG Pactual S.A. raised its position in Globant S.A. (NYSE:GLOB) by 222.7% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 103,900 shares of the information technology services provider’s stock after acquiring an additional 71,700 shares during the quarter. Globant makes up 1.2% of Banco BTG Pactual S.A.’s investment portfolio, making the stock its 22nd largest position. Banco BTG Pactual S.A. owned 0.24% of Globant worth $6,792,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the company. Nuveen LLC increased its position in shares of Globant by 80.2% in the fourth quarter. Nuveen LLC now owns 1,027,136 shares of the information technology services provider’s stock valued at $67,144,000 after acquiring an additional 456,999 shares during the period. SmartHarvest Portfolios LLC purchased a new position in shares of Globant in the fourth quarter valued at about $317,000. Picton Mahoney Asset Management purchased a new position in shares of Globant in the fourth quarter valued at about $3,335,000. Empowered Funds LLC purchased a new position in shares of Globant in the fourth quarter valued at about $105,000. Finally, Deutsche Bank AG increased its position in shares of Globant by 34.9% in the fourth quarter. Deutsche Bank AG now owns 593,184 shares of the information technology services provider’s stock valued at $38,776,000 after acquiring an additional 153,429 shares during the period. Hedge funds and other institutional investors own 91.60% of the company’s stock.

Key Globant News

Here are the key news stories impacting Globant this week:

• Negative Sentiment: Fresh reminders about the pending securities fraud class action and June 23 deadline may increase perceived legal and financial risk for Globant (GLOB), adding pressure on the stock. Article Title
• Negative Sentiment: Additional law-firm alerts keep the lawsuit in focus and may encourage more investor participation, which can further weigh on sentiment for Globant (GLOB). Article Title
• Negative Sentiment: Glancy Prongay Wolke & Rotter’s deadline alert and similar notices suggest the litigation is still active and unresolved, which is a negative overhang for Globant (GLOB). Article Title
• Negative Sentiment: Levi & Korsinsky said alleged “corrective disclosures” erased substantial value, reinforcing the bear case and likely adding to pressure on Globant (GLOB). Article Title
• Neutral Sentiment: Separately, Globant-related coverage on FIFA/world cup technology and coaching platform adoption highlights ongoing business activity, but it is less likely to move the stock today than the lawsuit headlines. Article Title

Wall Street Analyst Weigh In

GLOB has been the topic of a number of analyst reports. Guggenheim decreased their price objective on shares of Globant from $80.00 to $65.00 and set a “buy” rating on the stock in a research report on Monday, February 23rd. Susquehanna reduced their price target on shares of Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a research report on Friday, May 15th. JPMorgan Chase & Co. reduced their price target on shares of Globant from $75.00 to $68.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 18th. Needham & Company LLC reduced their price target on shares of Globant from $60.00 to $50.00 and set a “buy” rating on the stock in a research report on Friday, May 15th. Finally, UBS Group reduced their price target on shares of Globant from $75.00 to $50.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 5th. Eight equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $64.81.

Globant Price Performance

Shares of GLOB opened at $36.36 on Friday. The stock has a market cap of $1.59 billion, a PE ratio of 14.78, a price-to-earnings-growth ratio of 1.35 and a beta of 1.02. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82. Globant S.A. has a fifty-two week low of $32.50 and a fifty-two week high of $100.19. The firm’s 50-day simple moving average is $42.07 and its two-hundred day simple moving average is $53.04.

Globant (NYSE:GLOB) last announced its quarterly earnings data on Friday, May 15th. The information technology services provider reported $1.50 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.50. The business had revenue of $607.09 million for the quarter, compared to analysts’ expectations of $601.66 million. Globant had a net margin of 4.46% and a return on equity of 9.87%. The business’s revenue was down .7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.50 earnings per share. Analysts anticipate that Globant S.A. will post 4.93 earnings per share for the current fiscal year.

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

About Globant

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.