Globant (NYSE:GLOB) Stock Price Up 4.8% - Still a Buy?

Key Points

• Globant shares rose 4.8% to about $38.17, although trading volume was roughly 96% below the average session.
• Analyst sentiment remains mixed, with five Buy, eleven Hold, and two Sell ratings; the consensus rating is Hold with a $44.62 price target.
• Quarterly EPS of $1.40 missed estimates of $1.50, while revenue of $614.42 million slightly exceeded expectations. Insiders sold $585,400 of stock over the past 90 days, while institutions own 91.6% of shares.

Globant S.A. (NYSE:GLOB - Get Free Report) shot up 4.8% during mid-day trading on Tuesday. The company traded as high as $38.37 and last traded at $38.1680. Approximately 60,224 shares changed hands during trading, a decline of 96% from the average session volume of 1,579,420 shares. The stock had previously closed at $36.43.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. William Blair cut Globant from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft set a $33.00 price target on shares of Globant in a research note on Friday, July 10th. Itau BBA Securities lowered shares of Globant from an "outperform" rating to a "market perform" rating and set a $39.00 price target on the stock. in a research note on Wednesday, July 8th. TD Cowen cut their price objective on shares of Globant from $47.00 to $45.00 and set a "buy" rating on the stock in a report on Friday, August 14th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Globant from $47.00 to $44.00 and set a "neutral" rating for the company in a research report on Friday, August 14th. Five investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Globant currently has an average rating of "Hold" and a consensus price target of $44.62.

Globant Stock Performance

The firm has a 50-day simple moving average of $37.61 and a 200 day simple moving average of $38.06. The company has a market cap of $1.67 billion, a price-to-earnings ratio of 14.90, a price-to-earnings-growth ratio of 4.64 and a beta of 0.98. 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 released its quarterly earnings results on Thursday, August 13th. The information technology services provider reported $1.40 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.10). Globant had a net margin of 4.63% and a return on equity of 9.28%. The business had revenue of $614.42 million during the quarter, compared to analysts' expectations of $612.86 million. During the same quarter last year, the company earned $1.53 EPS. The firm's revenue for the quarter was up .0% compared to the same quarter last year. Globant has set its FY 2026 guidance at 5.750-6.150 EPS and its Q3 2026 guidance at 1.430-1.430 EPS. On average, sell-side analysts predict that Globant S.A. will post 4.58 earnings per share for the current fiscal year.

Insider Transactions at Globant

In related news, insider Wanda Weigert sold 6,000 shares of the firm's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $40.45, for a total value of $242,700.00. Following the completion of the sale, the insider owned 64,046 shares in the company, valued at $2,590,660.70. This trade represents a 8.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CRO Fernando Matzkin sold 2,500 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $40.00, for a total value of $100,000.00. Following the transaction, the executive directly owned 71,608 shares in the company, valued at $2,864,320. This represents a 3.37% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 14,500 shares of company stock worth $585,400 over the last 90 days. 2.67% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Pzena Investment Management LLC purchased a new position in shares of Globant in the first quarter valued at $136,893,000. BlackRock Inc. purchased a new position in Globant during the second quarter worth about $128,713,000. Alyeska Investment Group L.P. boosted its position in shares of Globant by 78.5% in the second quarter. Alyeska Investment Group L.P. now owns 2,954,954 shares of the information technology services provider's stock worth $85,516,000 after acquiring an additional 1,299,353 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of Globant by 350.3% in the 2nd quarter. Wellington Management Group LLP now owns 1,706,156 shares of the information technology services provider's stock valued at $49,376,000 after purchasing an additional 1,327,268 shares during the last quarter. Finally, Brown Advisory Inc. purchased a new position in shares of Globant in the 4th quarter worth $23,050,000. 91.60% of the stock is owned by hedge funds and other institutional investors.

About Globant

Globant SA NYSE: GLOB is a digitally native technology services company that helps organizations develop, modernize and manage digital products and business operations. Its services include software product engineering, user experience and design, cloud transformation, data and analytics, artificial intelligence, enterprise platforms, cybersecurity and digital marketing.

The company works with clients across industries such as financial services, healthcare, media and entertainment, retail, travel and consumer products.

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