Globant (NYSE:GLOB) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Globant from “hold” to “strong sell,” while the broader analyst consensus remains “Hold” with an average price target of $46.38.
• Several firms recently cut their price targets and ratings, including Citigroup, Goldman Sachs, Wedbush and Itaú BBA, with targets generally ranging from $33 to $52.
• Globant’s latest quarterly results missed earnings expectations, reporting $1.40 in EPS versus the $1.50 consensus, although revenue of $614.42 million slightly exceeded estimates. The company also authorized a $50 million share-repurchase program.

Globant (NYSE:GLOB - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

GLOB has been the topic of a number of other reports. Citigroup lowered their target price on Globant from $42.00 to $37.00 and set a "neutral" rating on the stock in a research note on Monday, July 27th. The Goldman Sachs Group reduced their price target on shares of Globant from $60.00 to $52.00 and set a "neutral" rating for the company in a research report on Friday, August 14th. Deutsche Bank Aktiengesellschaft set a $33.00 price objective on shares of Globant in a report on Friday, July 10th. Wedbush lowered shares of Globant from an "outperform" rating to a "neutral" rating and lowered their price objective for the stock from $54.00 to $37.00 in a research report on Friday, August 14th. Finally, Itau BBA Securities cut shares of Globant from an "outperform" rating to a "market perform" rating and set a $39.00 target price on the stock. in a research note on Wednesday, July 8th. Five equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $46.38.

Globant Price Performance

Shares of NYSE GLOB opened at $40.02 on Monday. Globant has a twelve month low of $27.56 and a twelve month high of $72.10. The stock's 50 day moving average price is $34.03 and its 200-day moving average price is $40.85. The company has a market capitalization of $1.75 billion, a PE ratio of 15.69, a PEG ratio of 2.54 and a beta of 1.02. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.19.

Globant (NYSE:GLOB - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The information technology services provider reported $1.40 EPS for the quarter, missing analysts' consensus estimates of $1.50 by ($0.10). The business had revenue of $614.42 million for the quarter, compared to analysts' expectations of $612.86 million. Globant had a net margin of 4.63% and a return on equity of 9.28%. The business's revenue was up .0% compared to the same quarter last year. During the same period in the previous year, the business posted $1.53 earnings per share. Globant has set its FY 2026 guidance at 5.750-6.150 EPS and its Q3 2026 guidance at 1.430-1.430 EPS. On average, equities analysts anticipate that Globant will post 4.65 EPS for the current year.

Globant announced that its Board of Directors has authorized a stock repurchase program on Monday, May 18th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Globant

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sanctuary Advisors LLC grew its stake in Globant by 7.2% during the fourth quarter. Sanctuary Advisors LLC now owns 3,801 shares of the information technology services provider's stock valued at $248,000 after acquiring an additional 255 shares in the last quarter. CWM LLC lifted its stake in Globant by 33.7% in the 4th quarter. CWM LLC now owns 1,151 shares of the information technology services provider's stock worth $75,000 after purchasing an additional 290 shares in the last quarter. Parallel Advisors LLC boosted its holdings in shares of Globant by 27.1% during the 1st quarter. Parallel Advisors LLC now owns 1,735 shares of the information technology services provider's stock valued at $80,000 after purchasing an additional 370 shares during the last quarter. IHT Wealth Management LLC boosted its holdings in shares of Globant by 9.4% during the 2nd quarter. IHT Wealth Management LLC now owns 4,390 shares of the information technology services provider's stock valued at $399,000 after purchasing an additional 376 shares during the last quarter. Finally, Sora Investors LLC grew its position in shares of Globant by 0.4% during the fourth quarter. Sora Investors LLC now owns 85,714 shares of the information technology services provider's stock valued at $5,603,000 after purchasing an additional 379 shares in the last quarter. 91.60% of the stock is currently owned by institutional investors.

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.

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