Globant stock rises after announcing $125 million share buyback plan

Published 01/10/2025, 21:34
© Reuters.

Investing.com -- Globant SA (NYSE:GLOB) stock rose 2% in after-hours trading on Wednesday following the company’s announcement of a new share repurchase program valued at up to $125 million.

The IT and software development firm’s board approved the buyback plan, which will allocate up to $50 million per quarter for repurchasing common shares. The program is scheduled to begin in the fourth quarter of 2025 and continue through the fourth quarter of 2026.

Martin Migoya, chairman and CEO of Globant, stated that the repurchase program reflects the company’s "strong confidence in Globant’s long-term strategy" as the business continues to solidify around an "AI-first mindset."

Juan Urthiague, Globant’s CFO, added that the buyback program would be supported by the company’s free cash flow generation while maintaining investments in strategic growth initiatives.

The timing, price, and volume of share repurchases will be determined at management’s discretion based on various factors including market conditions, share price, regulatory requirements, and corporate liquidity needs. The company noted it may use various methods for repurchasing shares, including open market transactions and accelerated share repurchases.

Globant emphasized that it is not obligated to repurchase any specific amount of shares and may suspend or discontinue the program at any time without prior notice.

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