Globant (NYSE:GLOB) Stock Falls 4.7% - Here's What Happened

Key Points

• Globant shares fell 4.7% to about $46.51 in mid-day trading, on volume roughly 96% below the stock’s average daily volume.
• Analyst sentiment is mixed but skews neutral: recent downgrades included Wedbush and Guggenheim, and MarketBeat reports a consensus “Hold” rating with an average price target of $45.75.
• In its latest reported quarter, Globant earned $1.40 per share, below the $1.50 consensus estimate, while revenue of $614.42 million slightly exceeded forecasts; revenue was flat year over year.

Shares of Globant S.A. (NYSE:GLOB - Get Free Report) fell 4.7% during mid-day trading on Wednesday. The company traded as low as $46.50 and last traded at $46.5120. Approximately 56,541 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 1,533,234 shares. The stock had previously closed at $48.81.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on GLOB shares. Wedbush downgraded Globant from an "outperform" rating to a "neutral" rating and dropped their price target for the stock from $54.00 to $37.00 in a research report on Friday, August 14th. Wells Fargo & Company upped their price objective on Globant from $39.00 to $48.00 and gave the company an "equal weight" rating in a research report on Monday, October 26th. TD Cowen decreased their price objective on Globant from $47.00 to $45.00 and set a "buy" rating on the stock in a research note on Friday, August 14th. Guggenheim cut Globant from a "buy" rating to a "neutral" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. cut their target price on shares of Globant from $47.00 to $44.00 and set a "neutral" rating for the company in a research note on Friday, August 14th. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $45.75.

Globant Price Performance

The company has a 50 day moving average of $39.77 and a 200 day moving average of $41.72. The stock has a market capitalization of $2.05 billion, a price-to-earnings ratio of 18.31, a price-to-earnings-growth ratio of 6.03 and a beta of 0.86. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.19.

Globant (NYSE:GLOB - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The information technology services provider reported $1.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.50 by ($0.10). Globant had a return on equity of 9.28% and a net margin of 4.63%. The business had revenue of $614.42 million during the quarter, compared to analyst estimates of $612.86 million. During the same period in the previous year, the business posted $1.53 earnings per share. The firm's quarterly revenue was up .0% on a year-over-year basis. Globant has set its FY 2026 guidance at 5.750-6.150 EPS and its Q3 2026 guidance at 1.430-1.430 EPS. As a group, equities research analysts forecast that Globant S.A. will post 4.57 EPS for the current fiscal year.

Insider Buying and Selling

In other Globant news, CTO Diego Tartara sold 6,000 shares of Globant stock in a transaction on Friday, August 28th. The shares were sold at an average price of $40.45, for a total value of $242,700.00. Following the transaction, the chief technology officer owned 72,320 shares in the company, valued at $2,925,344. This trade represents a 7.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Wanda Weigert sold 6,000 shares of the business's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $40.45, for a total transaction of $242,700.00. Following the sale, the insider directly owned 64,046 shares of the company's stock, valued at $2,590,660.70. This represents a 8.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 14,500 shares of company stock valued at $585,400. Insiders own 2.67% of the company's stock.

Institutional Investors Weigh In On Globant

A number of institutional investors have recently added to or reduced their stakes in GLOB. Westwood Global Investments LLC increased its stake in Globant by 4.7% during the third quarter. Westwood Global Investments LLC now owns 215,705 shares of the information technology services provider's stock worth $7,485,000 after acquiring an additional 9,691 shares during the last quarter. Private Advisor Group LLC acquired a new position in shares of Globant in the 3rd quarter valued at about $279,000. Public Sector Pension Investment Board purchased a new stake in shares of Globant during the 3rd quarter worth about $1,692,000. Global Retirement Partners LLC grew its holdings in shares of Globant by 266.0% during the 3rd quarter. Global Retirement Partners LLC now owns 2,412 shares of the information technology services provider's stock worth $84,000 after purchasing an additional 1,753 shares during the period. Finally, Edgestream Partners L.P. acquired a new stake in Globant during the 3rd quarter worth approximately $3,115,000. Hedge funds and other institutional investors own 91.60% of the company's stock.

Globant Company Profile

Globant is a technology services company that helps businesses design, build and manage digital products and platforms. Its offerings include software and product engineering, digital experience design, cloud services, data and artificial intelligence solutions, and technology consulting. Founded in Argentina in 2003, Globant serves clients across multiple industries and operates in markets around the world. The company organizes much of its work through specialized “Studios” focused on areas such as digital transformation and emerging technologies.

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