Globant (NYSE:GLOB) Reaches New 52-Week Low Following Analyst Downgrade

Key Points

• Globant S.A. shares hit a new 52-week low following a downgrade by Needham & Company, which reduced their price target from $115.00 to $85.00, despite maintaining a buy rating.
• Multiple brokerages have revised their ratings on Globant, with some lowering their targets significantly; for example, Goldman Sachs cut their target from $225.00 to $120.00.
• Institutional investors have increased their stakes in Globant, with Invesco Ltd. raising holdings by 199.1% in the last quarter, reflecting growing interest despite recent stock performance challenges.

Globant S.A. (NYSE:GLOB - Get Free Report)'s share price hit a new 52-week low during trading on Friday after The Goldman Sachs Group lowered their price target on the stock from $120.00 to $105.00. The Goldman Sachs Group currently has a neutral rating on the stock. Globant traded as low as $66.85 and last traded at $66.16, with a volume of 276243 shares traded. The stock had previously closed at $78.12.

A number of other equities analysts have also recently commented on the company. Needham & Company LLC lowered their target price on Globant from $115.00 to $85.00 and set a "buy" rating for the company in a report on Friday, August 15th. Susquehanna lowered their price objective on Globant from $225.00 to $160.00 and set a "positive" rating for the company in a research report on Wednesday, April 23rd. Guggenheim reaffirmed a "buy" rating and set a $125.00 price objective on shares of Globant in a research report on Tuesday, June 10th. Canaccord Genuity Group reissued a "hold" rating and issued a $97.00 target price (down from $165.00) on shares of Globant in a report on Thursday, June 26th. Finally, Mizuho set a $153.00 target price on Globant and gave the company an "outperform" rating in a report on Monday, May 19th. Eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $147.13.

Institutional Trading of Globant

Hedge funds have recently modified their holdings of the business. State of Wyoming raised its holdings in Globant by 78.9% during the second quarter. State of Wyoming now owns 882 shares of the information technology services provider's stock worth $80,000 after purchasing an additional 389 shares during the last quarter. Vident Advisory LLC acquired a new position in Globant during the second quarter worth $252,000. Tidal Investments LLC acquired a new position in Globant during the second quarter worth $252,000. HRT Financial LP raised its holdings in Globant by 223.7% during the second quarter. HRT Financial LP now owns 34,662 shares of the information technology services provider's stock worth $3,148,000 after purchasing an additional 23,955 shares during the last quarter. Finally, Holocene Advisors LP raised its holdings in Globant by 77.7% during the second quarter. Holocene Advisors LP now owns 83,243 shares of the information technology services provider's stock worth $7,562,000 after purchasing an additional 36,393 shares during the last quarter. 91.60% of the stock is owned by institutional investors and hedge funds.

Globant Stock Performance

The firm has a fifty day moving average of $86.26 and a 200-day moving average of $117.43. The stock has a market capitalization of $2.98 billion, a price-to-earnings ratio of 27.53, a PEG ratio of 3.03 and a beta of 1.16. The company has a quick ratio of 1.56, 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 data on Thursday, August 14th. The information technology services provider reported $1.53 EPS for the quarter, beating analysts' consensus estimates of $1.52 by $0.01. The business had revenue of $614.18 million during the quarter, compared to the consensus estimate of $612.66 million. Globant had a return on equity of 10.76% and a net margin of 4.44%.The business's revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.51 earnings per share. Globant has set its Q3 2025 guidance at 1.530- EPS. FY 2025 guidance at 6.120- EPS. As a group, sell-side analysts anticipate that Globant S.A. will post 5.73 EPS for the current 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.