Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Globant SA (NYSE:GLOB).
Is GLOB a good stock to buy? Globant SA (NYSE:GLOB) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 23. GLOB has seen a decrease in hedge fund interest in recent months. There were 23 hedge funds in our database with GLOB positions at the end of the second quarter. Our calculations also showed that GLOB isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let’s take a glance at the latest hedge fund action encompassing Globant SA (NYSE:GLOB).
Ian Wace of Marshall Wace
Do Hedge Funds Think GLOB Is A Good Stock To Buy Now?
At the end of September, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in GLOB over the last 25 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
The largest stake in Globant SA (NYSE:GLOB) was held by Fisher Asset Management, which reported holding $271.5 million worth of stock at the end of September. It was followed by Driehaus Capital with a $73.4 million position. Other investors bullish on the company included Millennium Management, Marshall Wace LLP, and Cartica Management. In terms of the portfolio weights assigned to each position Cartica Management allocated the biggest weight to Globant SA (NYSE:GLOB), around 9.79% of its 13F portfolio. Atika Capital is also relatively very bullish on the stock, earmarking 0.9 percent of its 13F equity portfolio to GLOB.
Due to the fact that Globant SA (NYSE:GLOB) has experienced declining sentiment from the smart money, it’s easy to see that there was a specific group of fund managers who sold off their positions entirely by the end of the third quarter. Interestingly, Anand Parekh’s Alyeska Investment Group cut the largest position of the 750 funds tracked by Insider Monkey, valued at about $20.3 million in stock, and Qing Li’s Sciencast Management was right behind this move, as the fund cut about $0.7 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.
Let’s also examine hedge fund activity in other stocks similar to Globant SA (NYSE:GLOB). These stocks are Atmos Energy Corporation (NYSE:ATO), Bunge Limited (NYSE:BG), Universal Health Services, Inc. (NYSE:UHS), Axon Enterprise, Inc. (NASDAQ:AXON), Lamar Advertising Company (NASDAQ:LAMR), Natura &Co Holding S.A. (NYSE:NTCO), and C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW). This group of stocks’ market valuations are closest to GLOB’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ATO | 16 | 77442 | -2 |
| BG | 37 | 538805 | -3 |
| UHS | 43 | 751314 | 2 |
| AXON | 32 | 529860 | 8 |
| LAMR | 30 | 445462 | -2 |
| NTCO | 6 | 46852 | 1 |
| CHRW | 20 | 287994 | -11 |
| Average | 26.3 | 382533 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.3 hedge funds with bullish positions and the average amount invested in these stocks was $383 million. That figure was $601 million in GLOB’s case. Universal Health Services, Inc. (NYSE:UHS) is the most popular stock in this table. On the other hand Natura &Co Holding S.A. (NYSE:NTCO) is the least popular one with only 6 bullish hedge fund positions. Globant SA (NYSE:GLOB) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for GLOB is 50.7. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and still beat the market by 3.6 percentage points. A small number of hedge funds were also right about betting on GLOB as the stock returned 11.8% since the end of the third quarter (through 12/31) and outperformed the market by an even larger margin.
Follow Globant S.a. (NYSE:GLOB)
Follow Globant S.a. (NYSE:GLOB)
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Disclosure: None. This article was originally published at Insider Monkey.
