Globant (NYSE:GLOB) Shares Up 5.7% - Still a Buy?

Key Points

• Globant's stock price increased by 5.7% to $61.44, although trading volume was significantly lower than its average.
• Analysts are divided on Globant, with eight giving a Buy rating, while one analyst has a Sell rating, highlighting a consensus rating of "Hold."
• The company recently launched a $125 million share repurchase program, indicating confidence in its stock's valuation.

Globant S.A. (NYSE:GLOB - Get Free Report) traded up 5.7% during mid-day trading on Tuesday . The stock traded as high as $60.77 and last traded at $61.44. 338,936 shares were traded during mid-day trading, a decline of 72% from the average session volume of 1,224,328 shares. The stock had previously closed at $58.10.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. UBS Group reduced their target price on Globant from $120.00 to $75.00 and set a "neutral" rating for the company in a report on Wednesday, August 20th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Globant in a research note on Wednesday, October 8th. 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 research note on Monday, July 21st. Needham & Company LLC dropped their target price on Globant from $115.00 to $85.00 and set a "buy" rating on the stock in a report on Friday, August 15th. Finally, Canaccord Genuity Group reaffirmed a "hold" rating and set 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 assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $138.47.

Globant Trading Up 5.9%

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 business's fifty day moving average is $62.03 and its 200 day moving average is $86.53. The stock has a market cap of $2.71 billion, a PE ratio of 25.04, a P/E/G ratio of 2.54 and a beta of 1.17.

Globant (NYSE:GLOB - Get Free Report) last posted its quarterly earnings results on Thursday, August 14th. The information technology services provider reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 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 company's revenue for the quarter 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. As a group, analysts predict that Globant S.A. will post 5.73 earnings per share for the current year.

Globant announced that its Board of Directors has approved a share repurchase 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 purchase up to 5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of GLOB. Brooklyn Investment Group boosted its holdings in shares of Globant by 194.4% during the first quarter. Brooklyn Investment Group now owns 212 shares of the information technology services provider's stock worth $25,000 after purchasing an additional 140 shares during the last quarter. Allworth Financial LP boosted its stake in Globant by 214.1% in the 2nd quarter. Allworth Financial LP now owns 289 shares of the information technology services provider's stock worth $26,000 after buying an additional 197 shares during the last quarter. Physician Wealth Advisors Inc. grew its holdings in Globant by 140.9% in the 1st quarter. Physician Wealth Advisors Inc. now owns 265 shares of the information technology services provider's stock valued at $31,000 after buying an additional 155 shares during the period. Bessemer Group Inc. acquired a new position in shares of Globant during the 1st quarter valued at about $39,000. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Globant by 186.7% during the 1st quarter. Farther Finance Advisors LLC now owns 387 shares of the information technology services provider's stock worth $45,000 after acquiring an additional 252 shares during the period. 91.60% of the stock is currently owned by institutional investors and hedge funds.

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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