Globant S.A. (NYSE:GLOB) Given Average Rating of "Hold" by Brokerages

Key Points

• Globant S.A. has received an average rating of "Hold" from 16 research firms, with one sell recommendation, seven hold recommendations, and eight buy recommendations.
• The company's share buyback plan allows for the repurchase of $125 million in outstanding shares, indicating management believes the stock is undervalued.
• Globant reported a $1.53 EPS for the last quarter, slightly exceeding analysts' expectations, with a year-over-year revenue increase of 4.5%.

Globant S.A. (NYSE:GLOB - Get Free Report) has been given an average recommendation of "Hold" by the sixteen research firms that are covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, seven have given a hold recommendation and eight have given a buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $138.4667.

Several research firms recently weighed in on GLOB. Weiss Ratings reiterated a "sell (d+)" rating on shares of Globant in a research report on Wednesday, October 8th. The Goldman Sachs Group cut their price objective on shares of Globant from $105.00 to $90.00 and set a "neutral" rating on the stock in a report on Thursday, October 9th. Canaccord Genuity Group restated 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. Scotiabank raised shares of Globant from a "sector perform" rating to a "sector outperform" rating and set a $115.00 price target for the company in a research report on Monday, July 21st. Finally, UBS Group cut their price target on shares of Globant from $120.00 to $75.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 20th.

Globant Stock Performance

Shares of GLOB opened at $58.10 on Tuesday. Globant has a 1 year low of $54.36 and a 1 year high of $238.32. The company's 50 day simple moving average is $62.03 and its 200 day simple moving average is $86.53. The company has a market capitalization of $2.56 billion, a price-to-earnings ratio of 23.62, a PEG ratio of 2.54 and a beta of 1.17. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.71 and a current ratio of 1.71.

Globant (NYSE:GLOB - Get Free Report) last released its earnings results on Thursday, August 14th. The information technology services provider reported $1.53 EPS for the quarter, topping 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 analysts' expectations of $612.66 million. During the same period in the previous year, the company earned $1.51 EPS. Globant'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. On average, sell-side analysts predict that Globant will post 5.73 EPS for the current year.

Globant declared that its Board of Directors has authorized a share buyback plan on Wednesday, October 1st that permits the company to repurchase $125.00 million in outstanding shares. This repurchase authorization permits the information technology services provider to reacquire up to 5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Globant

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. lifted its stake in shares of Globant by 199.1% in the 2nd 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 in the last quarter. Victory Capital Management Inc. lifted 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 valued at $200,709,000 after buying an additional 98,863 shares in the last quarter. Westfield Capital Management Co. LP grew its stake 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 buying an additional 280,081 shares during the period. Schroder Investment Management Group increased its position in shares of Globant by 20.1% in 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 acquiring an additional 168,700 shares in the last quarter. Finally, Royal Bank of Canada raised its stake in shares of Globant by 293.5% in the 1st quarter. Royal Bank of Canada now owns 999,955 shares of the information technology services provider's stock valued at $117,716,000 after acquiring an additional 745,848 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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