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LUXEMBOURG - Globant S.A. (NYSE:GLOB), currently trading at $56.88 and near its 52-week low, announced Tuesday that its board of directors has approved a new share repurchase program authorizing up to $50 million per quarter for the repurchase of common shares, with a maximum aggregate of $125 million.
The program will run from the fourth quarter of 2025 through the fourth quarter of 2026, according to a company press release.
Martin Migoya, chairman and CEO of Globant, said the program demonstrates confidence in the company’s long-term strategy. Juan Urthiague, Globant’s CFO, added that the repurchase program is supported by the company’s free cash flow generation and is part of its capital allocation strategy.
The timing, price, and number of shares repurchased will be at Globant’s discretion and will depend on various factors including business conditions, share price, regulatory requirements, and corporate liquidity. The program allows for various repurchase methods, including open market repurchases and accelerated share repurchases.
Globant is not obligated to repurchase any specific amount of shares and may suspend or discontinue the program at any time without prior notice.
Globant, which employs more than 30,000 people across 35 countries, provides industry-focused technology solutions combining technology and creativity for enterprise transformation. The company, currently valued at $2.49 billion and maintaining a "GOOD" financial health score according to InvestingPro, serves clients including Google, Electronic Arts, and Santander.
In other recent news, Globant has entered into a multi-year strategic collaboration agreement with Amazon Web Services (AWS) to enhance support for cloud migrations and generative AI adoption across various industries. This collaboration extends their decade-long relationship and focuses on sectors such as Media and Entertainment, Gaming, Sports, Banking and Financial Services, Travel and Hospitality, and Automotive. Meanwhile, several analyst firms have adjusted their price targets for Globant. Jefferies has lowered its price target to $80 from $110, citing near-term headwinds despite maintaining a Buy rating. UBS also reduced its price target to $75 from $120, maintaining a Neutral rating, as Globant shares have significantly declined. Mizuho has adjusted its target to $91 from $153, following a revised revenue growth guidance from Globant, which now forecasts at least 1% growth by 2025. Needham has lowered its target to $85 from $115, maintaining a Buy rating, due to a weaker demand outlook despite Globant’s second-quarter results slightly exceeding expectations.
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