Cullen Frost Bankers Inc. Cuts Stock Position in Globant S.A. $GLOB

Key Points

• Cullen Frost Bankers Inc. significantly reduced its stake in Globant S.A. by 92.5% in the 2nd quarter, now holding only 3,557 shares valued at $323,000.
• Globant reported a 4.5% increase in revenue for the quarter, totaling $614.18 million, and earnings per share (EPS) of $1.53, slightly exceeding analysts' expectations.
• The company's Board of Directors has authorized a $125 million share buyback program, indicating they may view the stock as undervalued.

Cullen Frost Bankers Inc. lowered its stake in Globant S.A. (NYSE:GLOB - Free Report) by 92.5% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 3,557 shares of the information technology services provider's stock after selling 43,901 shares during the period. Cullen Frost Bankers Inc.'s holdings in Globant were worth $323,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Victory Capital Management Inc. boosted its stake in Globant by 6.2% during the 1st quarter. Victory Capital Management Inc. now owns 1,704,973 shares of the information technology services provider's stock valued at $200,709,000 after purchasing an additional 98,863 shares during the last quarter. Royal Bank of Canada boosted its stake in Globant by 293.5% during the 1st quarter. Royal Bank of Canada now owns 999,955 shares of the information technology services provider's stock valued at $117,716,000 after purchasing an additional 745,848 shares during the last quarter. Invesco Ltd. boosted its stake in Globant by 764.3% during the 1st quarter. Invesco Ltd. now owns 945,215 shares of the information technology services provider's stock valued at $111,271,000 after purchasing an additional 835,859 shares during the last quarter. Westfield Capital Management Co. LP boosted its stake in Globant by 209.0% during the 1st quarter. Westfield Capital Management Co. LP now owns 820,445 shares of the information technology services provider's stock valued at $96,583,000 after purchasing an additional 554,938 shares during the last quarter. Finally, Polen Capital Management LLC boosted its stake in Globant by 22.0% during the 1st quarter. Polen Capital Management LLC now owns 774,418 shares of the information technology services provider's stock valued at $91,164,000 after purchasing an additional 139,894 shares during the last quarter. Hedge funds and other institutional investors own 91.60% of the company's stock.

Globant Price Performance

Shares of Globant stock opened at $59.69 on Friday. Globant S.A. has a one year low of $54.36 and a one year high of $238.32. The stock's fifty day moving average is $60.84 and its 200 day moving average is $85.62. The stock has a market cap of $2.63 billion, a P/E ratio of 24.26, a P/E/G ratio of 5.70 and a beta of 1.17. 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 (NYSE:GLOB - Get Free Report) last announced its earnings results on Thursday, August 14th. The information technology services provider reported $1.53 EPS for the quarter, topping analysts' consensus estimates of $1.52 by $0.01. Globant had a return on equity of 10.76% and a net margin of 4.44%.The company had revenue of $614.18 million for the quarter, compared to analysts' expectations of $612.66 million. During the same period last year, the firm earned $1.51 EPS. 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. Sell-side analysts anticipate that Globant S.A. will post 5.73 earnings per share for the current year.

Globant announced that its Board of Directors has initiated a share buyback program on Wednesday, October 1st that allows the company to repurchase $125.00 million in shares. This repurchase authorization allows the information technology services provider to buy up to 5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have commented on GLOB shares. Weiss Ratings reiterated a "sell (d+)" rating on shares of Globant in a research note on Wednesday, October 8th. The Goldman Sachs Group cut their target price on Globant from $105.00 to $90.00 and set a "neutral" rating on the stock in a research note on Thursday, October 9th. Wells Fargo & Company raised Globant to a "hold" rating in a report on Wednesday. UBS Group lowered 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, JPMorgan Chase & Co. cut Globant from an "overweight" rating to a "neutral" rating and set a $78.00 price target on the stock. in a report on Friday, August 15th. Seven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Globant has an average rating of "Hold" and an average target price 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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