ARGA Investment Management LP Invests $1.32 Million in Globant S.A. $GLOB

Key Points

• ARGA Investment Management LP invested approximately $1.32 million in Globant S.A., acquiring 14,517 shares during the second quarter.
• Globant's recent earnings report showed a net margin of 4.44% and revenue of $614.18 million for the quarter, exceeding analyst expectations.
• The company's Board has initiated a $125 million share repurchase plan, indicating a belief that the shares are currently undervalued.

ARGA Investment Management LP acquired a new position in shares of Globant S.A. (NYSE:GLOB - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 14,517 shares of the information technology services provider's stock, valued at approximately $1,319,000.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of GLOB. S Bank Fund Management Ltd acquired a new position in Globant during the second quarter worth about $5,360,000. CWM LLC increased its position in Globant by 30.1% during the 2nd quarter. CWM LLC now owns 636 shares of the information technology services provider's stock worth $58,000 after purchasing an additional 147 shares in the last quarter. Lecap Asset Management Ltd. bought a new position in Globant in the 2nd quarter valued at approximately $1,855,000. Avior Wealth Management LLC boosted its position in Globant by 27.9% in the second quarter. Avior Wealth Management LLC now owns 3,850 shares of the information technology services provider's stock valued at $350,000 after buying an additional 841 shares in the last quarter. Finally, Counterpoint Mutual Funds LLC acquired a new stake in Globant in the second quarter valued at approximately $272,000. Institutional investors own 91.60% of the company's stock.

Globant Stock Up 0.8%

Globant stock opened at $60.08 on Friday. The firm has a 50 day moving average price of $60.98 and a two-hundred day moving average price of $85.88. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.71 and a current ratio of 1.71. Globant S.A. has a 52-week low of $54.36 and a 52-week high of $238.32. The firm has a market cap of $2.65 billion, a price-to-earnings ratio of 24.42, a PEG ratio of 5.67 and a beta of 1.17.

Globant (NYSE:GLOB - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The information technology services provider reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.52 by $0.01. Globant had a net margin of 4.44% and a return on equity of 10.76%. The company had revenue of $614.18 million during the quarter, compared to analysts' expectations of $612.66 million. During the same period in the prior year, the company posted $1.51 earnings per share. Globant's revenue for the quarter was up 4.5% compared to the same quarter last year. Globant has set its Q3 2025 guidance at 1.530- EPS. FY 2025 guidance at 6.120- EPS. Equities analysts predict that Globant S.A. will post 5.73 EPS for the current year.

Globant declared that its Board of Directors has initiated a share repurchase plan on Wednesday, October 1st that allows the company to repurchase $125.00 million in outstanding shares. This repurchase authorization allows the information technology services provider to purchase up to 5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have recently commented on GLOB. Canaccord Genuity Group reiterated a "hold" rating and issued a $97.00 price target (down from $165.00) on shares of Globant in a research note on Thursday, June 26th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Globant in a research report on Wednesday, October 8th. Scotiabank raised Globant from a "sector perform" rating to a "sector outperform" rating and set a $115.00 price target on the stock in a research note on Monday, July 21st. UBS Group reduced their price target on Globant from $120.00 to $75.00 and set a "neutral" rating on the stock in a report on Wednesday, August 20th. Finally, Citigroup raised shares of Globant to a "hold" rating in a report on Thursday. Seven analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $122.13.

Globant Profile

Globant SA, together with its subsidiaries, provides technology services worldwide. It provides digital solutions comprising blockchain, cloud technologies, cybersecurity, data and artificial intelligence, digital experience and performance, code, Internet of Things, metaverse, and engineering and testing; and enterprise technology solutions and services, such as Agile organization, Cultural Hacking, process optimization services, as well as AWS, Google Cloud, Microsoft, Oracle, SalesForce, SAP, and ServiceNow technology solutions.

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