Globant (NYSE:GLOB) Shares Gap Up - Here's Why

Key Points

• Globant shares gapped up from a previous close of $56.88 to open at $59.43, and were last seen trading at $61.83.
• Analysts have varying price targets for Globant, with Scotiabank setting a target of $115.00 while others, such as UBS Group, lowered targets significantly to $75.00.
• Globant's Board of Directors announced a $125 million share buyback program, suggesting they believe the current stock price is undervalued.

Globant S.A. (NYSE:GLOB - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $56.88, but opened at $59.43. Globant shares last traded at $61.83, with a volume of 388,514 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Scotiabank raised Globant from a "sector perform" rating to a "sector outperform" rating and set a $115.00 price target for the company in a report on Monday, July 21st. UBS Group dropped their price target on Globant from $120.00 to $75.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 20th. Needham & Company LLC lowered their price objective on Globant from $115.00 to $85.00 and set a "buy" rating for the company in a research note on Friday, August 15th. The Goldman Sachs Group reduced their target price on Globant from $120.00 to $105.00 and set a "neutral" rating for the company in a report on Monday, August 18th. Finally, JPMorgan Chase & Co. lowered Globant from an "overweight" rating to a "neutral" rating and set a $78.00 price objective for the company. in a report on Friday, August 15th. Eight research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, Globant has a consensus rating of "Moderate Buy" and an average price target of $139.47.

Globant Price Performance

The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.71 and a current ratio of 1.71. The stock has a market capitalization of $2.64 billion, a P/E ratio of 24.34, a PEG ratio of 2.52 and a beta of 1.17. The firm has a fifty day moving average price of $68.46 and a two-hundred day moving average price of $92.85.

Globant (NYSE:GLOB - Get Free Report) last issued its quarterly earnings data on Thursday, August 14th. The information technology services provider reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.52 by $0.01. The firm had revenue of $614.18 million during the quarter, compared to analyst estimates of $612.66 million. Globant had a return on equity of 10.76% and a net margin of 4.44%.The business's quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter last year, the business posted $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, analysts expect that Globant S.A. will post 5.73 EPS for the current fiscal year.

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

Institutional Investors Weigh In On Globant

Several institutional investors have recently modified their holdings of GLOB. Invesco Ltd. increased its stake in Globant by 199.1% in the second quarter. Invesco Ltd. now owns 2,827,155 shares of the information technology services provider's stock valued at $256,819,000 after purchasing an additional 1,881,940 shares during the period. Victory Capital Management Inc. increased its position in Globant by 6.2% during the first quarter. Victory Capital Management Inc. now owns 1,704,973 shares of the information technology services provider's stock worth $200,709,000 after purchasing an additional 98,863 shares during the last quarter. Westfield Capital Management Co. LP increased its position in Globant by 34.1% during the second 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 purchasing an additional 280,081 shares during the last quarter. Schroder Investment Management Group increased its position in Globant by 20.1% during the second quarter. Schroder Investment Management Group now owns 1,006,175 shares of the information technology services provider's stock worth $91,401,000 after purchasing an additional 168,700 shares during the last quarter. Finally, Royal Bank of Canada increased its position in shares of Globant by 293.5% in the first quarter. Royal Bank of Canada now owns 999,955 shares of the information technology services provider's stock worth $117,716,000 after acquiring an additional 745,848 shares in the last quarter. 91.60% of the stock is owned by hedge funds and other institutional investors.

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.

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