Globant (NYSE:GLOB) Trading Down 4.5% After Insider Selling

Key Points

• Globant shares fell 4.5% to about $38.52 after Chief Revenue Officer Fernando Matzkin sold 2,500 shares for $100,000, reducing his holdings by 3.37%.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy, 11 rate it Hold, and two rate it Sell. The consensus rating is Hold, with an average price target of $46.38.
• Globant’s latest quarter showed revenue of $614.42 million, slightly above estimates, but adjusted EPS of $1.40 missed the $1.50 consensus. The company also authorized a $50 million share buyback, covering up to 2.9% of outstanding shares.

Shares of Globant S.A. (NYSE:GLOB - Get Free Report) dropped 4.5% during trading on Friday following insider selling activity. The stock traded as low as $38.34 and last traded at $38.5240. Approximately 187,131 shares changed hands during trading, a decline of 89% from the average session volume of 1,680,440 shares. The stock had previously closed at $40.35.

Specifically, CRO Fernando Matzkin sold 2,500 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $40.00, for a total value of $100,000.00. Following the completion of the sale, the executive directly owned 71,608 shares of the company's stock, valued at approximately $2,864,320. This represents a 3.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

Several research firms have commented on GLOB. The Goldman Sachs Group lowered their target price on shares of Globant from $60.00 to $52.00 and set a "neutral" rating on the stock in a research report on Friday, August 14th. TD Cowen reduced their price target on Globant from $47.00 to $45.00 and set a "buy" rating for the company in a research report on Friday, August 14th. Susquehanna decreased their price target on Globant from $78.00 to $70.00 and set a "positive" rating for the company in a research note on Friday, August 14th. UBS Group set a $38.00 price objective on Globant in a report on Friday, August 14th. Finally, Deutsche Bank Aktiengesellschaft set a $33.00 price objective on Globant in a research note on Friday, July 10th. Five analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $46.38.

Globant Stock Performance

The stock has a 50 day moving average price of $35.37 and a two-hundred day moving average price of $40.05. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.84 and a quick ratio of 1.84. The company has a market capitalization of $1.69 billion, a price-to-earnings ratio of 15.11, a price-to-earnings-growth ratio of 2.51 and a beta of 0.98.

Globant (NYSE:GLOB - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The information technology services provider reported $1.40 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 company had revenue of $614.42 million for the quarter, compared to the consensus estimate of $612.86 million. During the same period in the prior year, the company earned $1.53 EPS. The firm's revenue 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, analysts predict that Globant S.A. will post 4.61 EPS for the current fiscal year.

Globant declared that its board has authorized a share buyback plan on Monday, May 18th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the information technology services provider to reacquire up to 2.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Globant

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GLOB. BlackRock Inc. bought a new stake in Globant in the second quarter valued at approximately $128,713,000. Pzena Investment Management LLC acquired a new stake in Globant during the 2nd quarter worth $111,700,000. Wellington Management Group LLP lifted its holdings in Globant by 350.3% during the second quarter. Wellington Management Group LLP now owns 1,706,156 shares of the information technology services provider's stock worth $49,376,000 after acquiring an additional 1,327,268 shares in the last quarter. Alyeska Investment Group L.P. grew its stake in 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 valued at $85,516,000 after acquiring an additional 1,299,353 shares during the period. Finally, Alliancebernstein L.P. grew its stake in Globant by 6,875.8% in the second quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider's stock valued at $84,413,000 after acquiring an additional 915,924 shares during the period. Institutional investors own 91.60% of the company's stock.

About Globant

Globant is a digitally native technology services company founded in 2003 in Buenos Aires, Argentina. Specializing in software development and digital transformation, Globant partners with enterprises to conceive, design and engineer software products and platforms. The company leverages agile methodologies and proprietary delivery frameworks to accelerate projects in areas such as cloud migration, user experience design, data analytics, artificial intelligence and blockchain-enabled solutions.

Globant's service offerings span strategy consulting, custom software engineering, digital experience design and managed services.

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