Globant S.A. (NYSE:GLOB) Receives Average Rating of "Hold" from Brokerages

Key Points

• Analyst sentiment is neutral: Eighteen brokerages give Globant an average “Hold” rating, with 11 holds, five buys, and two sells. The average 12-month price target is $46.38, above the reported $36.73 opening price.
• Quarterly results were mixed: Globant reported $1.40 in adjusted EPS, below the $1.50 consensus estimate, while revenue of $614.42 million slightly exceeded expectations. Analysts expect full-year EPS of approximately $4.61.
• Shareholder activity has been notable: The company authorized a $50 million share-repurchase program, while insiders sold 14,500 shares worth $585,400 over the past three months. Institutional investors own 91.6% of Globant’s stock.

Globant S.A. (NYSE:GLOB - Get Free Report) has received a consensus recommendation of "Hold" from the eighteen research firms that are covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have given a buy rating to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $46.3750.

GLOB has been the subject of several recent research reports. JPMorgan Chase & Co. decreased their price objective on Globant from $47.00 to $44.00 and set a "neutral" rating for the company in a report on Friday, August 14th. Deutsche Bank Aktiengesellschaft set a $33.00 target price on Globant in a report on Friday, July 10th. Canaccord Genuity Group set a $35.00 price target on shares of Globant in a research report on Friday, August 14th. The Goldman Sachs Group decreased their price target on shares of Globant from $60.00 to $52.00 and set a "neutral" rating for the company in a research note on Friday, August 14th. Finally, Itau BBA Securities downgraded shares of Globant from an "outperform" rating to a "market perform" rating and set a $39.00 price objective on the stock. in a report on Wednesday, July 8th.

Globant Price Performance

GLOB stock opened at $36.73 on Friday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.84 and a quick ratio of 1.84. The company's 50-day moving average is $36.08 and its 200-day moving average is $39.70. The stock has a market capitalization of $1.61 billion, a PE ratio of 14.40, a price-to-earnings-growth ratio of 2.33 and a beta of 0.98. Globant has a 1 year low of $27.56 and a 1 year high of $72.10.

Globant (NYSE:GLOB - Get Free Report) last issued its 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). Globant had a net margin of 4.63% and a return on equity of 9.28%. The firm had revenue of $614.42 million during the quarter, compared to the consensus estimate of $612.86 million. During the same period in the previous year, the firm earned $1.53 earnings per share. The business's quarterly revenue was up .0% on a year-over-year basis. Globant has set its FY 2026 guidance at 5.750-6.150 EPS and its Q3 2026 guidance at 1.430-1.430 EPS. Equities research analysts expect that Globant will post 4.61 EPS for the current fiscal year.

Globant declared that its Board of Directors has initiated a share repurchase plan on Monday, May 18th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the information technology services provider to repurchase up to 2.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at Globant

In other Globant news, CTO Diego Tartara sold 6,000 shares of Globant stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $40.45, for a total transaction of $242,700.00. Following the completion of the transaction, the chief technology officer owned 72,320 shares in the company, valued at approximately $2,925,344. The trade was a 7.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Wanda Weigert sold 6,000 shares of the business's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $40.45, for a total value of $242,700.00. Following the sale, the insider directly owned 64,046 shares of the company's stock, valued at $2,590,660.70. This represents a 8.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 14,500 shares of company stock valued at $585,400 over the last three months. Corporate insiders own 2.67% of the company's stock.

Institutional Trading of Globant

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Globant during the 2nd quarter worth $128,713,000. Pzena Investment Management LLC purchased a new stake in shares of Globant in the second quarter valued at about $111,700,000. Wellington Management Group LLP lifted its position in shares of Globant by 350.3% during the second quarter. Wellington Management Group LLP now owns 1,706,156 shares of the information technology services provider's stock valued at $49,376,000 after purchasing an additional 1,327,268 shares in the last quarter. Alyeska Investment Group L.P. boosted its holdings in Globant by 78.5% during the second quarter. Alyeska Investment Group L.P. now owns 2,954,954 shares of the information technology services provider's stock worth $85,516,000 after purchasing an additional 1,299,353 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in Globant by 6,875.8% during the second quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider's stock worth $84,413,000 after purchasing an additional 915,924 shares during the last quarter. 91.60% of the stock is owned by hedge funds and other 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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