Globant (NYSE:GLOB) Declares Share Buyback Program

Key Points

• Globant has announced a $125 million share buyback program that allows the company to repurchase up to 5% of its outstanding shares, indicating the board's belief that the stock is undervalued.
• The company reported earnings of $1.53 per share for the last quarter, surpassing analysts' expectations and showing a year-over-year revenue increase of 4.5%.
• Analysts have varying ratings on Globant, with an average rating of "Moderate Buy" and a target price of around $139.47, reflecting mixed sentiment about the stock's future performance.

Globant (NYSE:GLOB - Get Free Report) announced that its board has initiated a stock buyback program on Wednesday, October 1st, RTT News reports. The company plans to buyback $125.00 million in outstanding shares. This buyback authorization permits the information technology services provider to buy up to 5% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several research firms have recently weighed in on GLOB. Guggenheim reissued a "buy" rating and issued a $125.00 price objective on shares of Globant in a report on Tuesday, June 10th. Deutsche Bank Aktiengesellschaft began coverage on Globant in a report on Thursday, July 17th. They issued a "hold" rating and a $87.00 price objective for the company. Scotiabank raised Globant from a "sector perform" rating to a "sector outperform" rating and set a $115.00 price objective for the company in a report on Monday, July 21st. UBS Group lowered their price objective on Globant from $120.00 to $75.00 and set a "neutral" rating for the company in a report on Wednesday, August 20th. Finally, The Goldman Sachs Group lowered their price objective on shares of Globant from $120.00 to $105.00 and set a "neutral" rating for the company in a research report on Monday, August 18th. Eight analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Globant has an average rating of "Moderate Buy" and an average target price of $139.47.

Globant Stock Performance

Globant stock traded down $0.47 during trading hours on Wednesday, hitting $56.91. The stock had a trading volume of 1,286,918 shares, compared to its average volume of 1,589,258. Globant has a fifty-two week low of $54.36 and a fifty-two week high of $238.32. The company has a quick ratio of 1.71, a current ratio of 1.71 and a debt-to-equity ratio of 0.19. The company has a 50-day moving average of $68.46 and a two-hundred day moving average of $92.85. The company has a market cap of $2.51 billion, a PE ratio of 23.14, a price-to-earnings-growth ratio of 2.52 and a beta of 1.17.

Globant (NYSE:GLOB - Get Free Report) last issued its earnings results on Thursday, August 14th. The information technology services provider reported $1.53 earnings per share (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 business 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 firm posted $1.51 EPS. Globant's quarterly revenue 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. On average, equities research analysts anticipate that Globant will post 5.73 EPS for the current fiscal year.

About Globant

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.