Globant (NYSE:GLOB) Given Sell (D+) Rating at Weiss Ratings

Key Points

• Globant's stock has been given a sell (D+) rating by Weiss Ratings, indicating a negative outlook from analysts.
• Several major financial institutions, including Goldman Sachs and UBS, have reduced their price targets for Globant, with current targets ranging from $75 to $105.
• Globant recently announced a stock repurchase plan of $125 million, signaling management's belief that the stock is undervalued.

Globant (NYSE:GLOB - Get Free Report)'s stock had its "sell (d+)" rating restated by analysts at Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

A number of other analysts also recently weighed in on GLOB. The Goldman Sachs Group reduced their price target on shares of Globant from $120.00 to $105.00 and set a "neutral" rating for the company in a report on Monday, August 18th. UBS Group reduced their price target on shares of Globant from $120.00 to $75.00 and set a "neutral" rating for the company in a report on Wednesday, August 20th. JPMorgan Chase & Co. downgraded shares of Globant from an "overweight" rating to a "neutral" rating and set a $78.00 price target for the company. in a report on Friday, August 15th. Needham & Company LLC reduced their price target on shares of Globant from $115.00 to $85.00 and set a "buy" rating for the company in a report on Friday, August 15th. Finally, Canaccord Genuity Group reissued a "hold" rating and issued a $97.00 price target (down from $165.00) on shares of Globant in a report on Thursday, June 26th. Eight analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $139.47.

Globant Stock Performance

Shares of GLOB opened at $59.37 on Wednesday. The company's fifty day moving average is $65.32 and its 200-day moving average is $90.32. Globant has a 12 month low of $54.36 and a 12 month high of $238.32. The firm has a market cap of $2.61 billion, a price-to-earnings ratio of 24.13, a price-to-earnings-growth ratio of 2.59 and a beta of 1.17. The company has a quick ratio of 1.71, a current ratio of 1.71 and a debt-to-equity ratio of 0.19.

Globant (NYSE:GLOB - Get Free Report) last announced its quarterly earnings results on Thursday, August 14th. The information technology services provider reported $1.53 EPS 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 for the quarter, compared to analyst estimates of $612.66 million. During the same quarter in the prior year, the business posted $1.51 EPS. Globant's quarterly revenue was up 4.5% on a year-over-year basis. Globant has set its Q3 2025 guidance at 1.530- EPS. FY 2025 guidance at 6.120- EPS. Equities analysts expect that Globant will post 5.73 EPS for the current fiscal year.

Globant announced that its board has authorized a stock repurchase plan on Wednesday, October 1st that authorizes the company to repurchase $125.00 million in shares. This repurchase authorization authorizes the information technology services provider to reacquire up to 5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Globant

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. increased its position in Globant by 199.1% in the 2nd quarter. Invesco Ltd. now owns 2,827,155 shares of the information technology services provider's stock valued at $256,819,000 after acquiring an additional 1,881,940 shares in the last quarter. Victory Capital Management Inc. grew its position in shares of 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 worth $200,709,000 after buying an additional 98,863 shares during the period. Westfield Capital Management Co. LP grew its position in shares of Globant by 34.1% during the 2nd quarter. Westfield Capital Management Co. LP now owns 1,100,526 shares of the information technology services provider's stock worth $99,972,000 after buying an additional 280,081 shares during the period. Schroder Investment Management Group grew its position in shares of Globant by 20.1% during the 2nd quarter. Schroder Investment Management Group now owns 1,006,175 shares of the information technology services provider's stock worth $91,401,000 after buying an additional 168,700 shares during the period. Finally, Royal Bank of Canada grew its position in shares of 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 worth $117,716,000 after buying an additional 745,848 shares during the period. Institutional investors and hedge funds own 91.60% of the company's stock.

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.