Globant (NYSE:GLOB) Rating Increased to Hold at Wells Fargo & Company

Key Points

• Wells Fargo & Company upgraded Globant's rating to "hold," reflecting a more cautious outlook as multiple analysts adjust their price targets and ratings for the company.
• Globant's stock fell by 2.9% recently, with a current market cap of $2.62 billion, and shares trading significantly below their one-year high of $238.32.
• The company has announced a $125 million share repurchase program, indicating that its leadership believes the stock is currently undervalued.

Globant (NYSE:GLOB - Get Free Report) was upgraded by research analysts at Wells Fargo & Company to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other research analysts also recently commented on GLOB. Weiss Ratings reissued a "sell (d+)" rating on shares of Globant in a report on Wednesday, October 8th. 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. UBS Group dropped their price objective 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. cut Globant from an "overweight" rating to a "neutral" rating and set a $78.00 target price on the stock. in a research note on Friday, August 15th. Finally, Needham & Company LLC reduced their target price on Globant from $115.00 to $85.00 and set a "buy" rating on the stock in a research note on Friday, August 15th. Seven analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Globant currently has a consensus rating of "Hold" and a consensus price target of $122.13.

Globant Stock Down 2.9%

Shares of NYSE:GLOB opened at $59.49 on Wednesday. The firm has a fifty day moving average price of $61.34 and a two-hundred day moving average price of $86.17. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.71 and a quick ratio of 1.71. Globant has a one year low of $54.36 and a one year high of $238.32. The company has a market cap of $2.62 billion, a price-to-earnings ratio of 24.18, a PEG ratio of 5.83 and a beta of 1.17.

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, beating 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 firm had revenue of $614.18 million during the quarter, compared to the consensus estimate of $612.66 million. During the same period last year, the firm earned $1.51 EPS. The business'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. Analysts anticipate that Globant will post 5.73 EPS for the current fiscal year.

Globant declared that its Board of Directors has approved a share repurchase program 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 reacquire up to 5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Globant

A number of large investors have recently added to or reduced their stakes in GLOB. Blue Trust Inc. raised its position in Globant by 23.6% in the 1st quarter. Blue Trust Inc. now owns 607 shares of the information technology services provider's stock worth $71,000 after purchasing an additional 116 shares during the period. Cambridge Investment Research Advisors Inc. purchased a new position in Globant in the 1st quarter worth $346,000. Oppenheimer & Co. Inc. increased its position in shares of Globant by 78.5% in the first quarter. Oppenheimer & Co. Inc. now owns 13,680 shares of the information technology services provider's stock valued at $1,610,000 after acquiring an additional 6,015 shares during the period. Bessemer Group Inc. purchased a new position in shares of Globant in the first quarter valued at about $39,000. Finally, Artemis Investment Management LLP increased its position in shares of Globant by 69.9% in the first quarter. Artemis Investment Management LLP now owns 44,058 shares of the information technology services provider's stock valued at $5,187,000 after acquiring an additional 18,124 shares during the period. Hedge funds and other institutional investors own 91.60% of the company's stock.

Globant Company 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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