Globant (NYSE:GLOB) Upgraded by Citigroup to "Hold" Rating

Key Points

• Citigroup has upgraded Globant (NYSE:GLOB) to a "hold" rating, indicating a cautious optimism about the company's future performance.
• Globant's recent quarterly earnings surpassed expectations, with a reported $1.53 earnings per share and revenue of $614.18 million.
• The company has initiated a stock buyback program, allowing for $125 million in share repurchases, signaling confidence in its stock value.

Globant (NYSE:GLOB - Get Free Report) was upgraded by Citigroup to a "hold" rating in a report issued on Thursday,Zacks.com reports.

A number of other equities research analysts have also weighed in on GLOB. Deutsche Bank Aktiengesellschaft started coverage on Globant in a report on Thursday, July 17th. They issued a "hold" rating and a $87.00 price objective on the stock. Canaccord Genuity Group reaffirmed a "hold" rating and issued a $97.00 price objective (down previously from $165.00) on shares of Globant in a report on Thursday, June 26th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Globant in a report on Wednesday, October 8th. Wells Fargo & Company raised Globant to a "hold" rating in a report on Wednesday. Finally, Scotiabank raised Globant from a "sector perform" rating to a "sector outperform" rating and set a $115.00 price objective on the stock in a report on Monday, July 21st. Seven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $122.13.

Globant Stock Performance

Shares of GLOB stock opened at $60.08 on Thursday. The stock has a market capitalization of $2.65 billion, a PE ratio of 24.42, a price-to-earnings-growth ratio of 5.67 and a beta of 1.17. Globant has a 52-week low of $54.36 and a 52-week high of $238.32. The stock's 50-day moving average price is $60.98 and its 200 day moving average price is $85.88. 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 issued its quarterly earnings results on Thursday, August 14th. The information technology services provider reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.01. The firm had revenue of $614.18 million for the quarter, compared to analysts' expectations of $612.66 million. Globant had a return on equity of 10.76% and a net margin of 4.44%.The firm's revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.51 EPS. Globant has set its Q3 2025 guidance at 1.530- EPS. FY 2025 guidance at 6.120- EPS. As a group, equities research analysts forecast that Globant will post 5.73 EPS for the current year.

Globant announced that its Board of Directors has approved a stock buyback program on Wednesday, October 1st that permits the company to buyback $125.00 million in outstanding shares. This buyback authorization permits the information technology services provider to buy up to 5% of its shares through open market purchases. Shares 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 the company. Benjamin Edwards Inc. boosted its stake in shares of Globant by 67.3% during the 3rd quarter. Benjamin Edwards Inc. now owns 5,200 shares of the information technology services provider's stock worth $298,000 after acquiring an additional 2,091 shares in the last quarter. Lecap Asset Management Ltd. lifted its stake in Globant by 14.8% in the 3rd quarter. Lecap Asset Management Ltd. now owns 23,433 shares of the information technology services provider's stock valued at $1,345,000 after buying an additional 3,013 shares in the last quarter. SG Americas Securities LLC lifted its stake in Globant by 791.2% in the 3rd quarter. SG Americas Securities LLC now owns 57,735 shares of the information technology services provider's stock valued at $3,313,000 after buying an additional 51,257 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in Globant by 352.0% in the 3rd quarter. Geneos Wealth Management Inc. now owns 452 shares of the information technology services provider's stock valued at $26,000 after buying an additional 352 shares in the last quarter. Finally, SJS Investment Consulting Inc. lifted its stake in Globant by 27,766.7% in the 3rd quarter. SJS Investment Consulting Inc. now owns 836 shares of the information technology services provider's stock valued at $48,000 after buying an additional 833 shares in the last quarter. 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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