Great-West Lifeco (TSE:GWO) Stock Price Expected to Rise, BMO Capital Markets Analyst Says

Key Points

• BMO Capital Markets has raised the price target for Great-West Lifeco (TSE:GWO) from C$55.00 to C$56.00, indicating a potential upside of 6.02% from the current stock price.
• The stock has experienced a recent decrease of 2.5%, trading at C$52.82, with a market capitalization of C$49.18 billion.
• Great-West Lifeco initiated a share repurchase program, reflecting management's belief that the stock may be undervalued.

Great-West Lifeco (TSE:GWO - Free Report) had its price target lifted by BMO Capital Markets from C$55.00 to C$56.00 in a report published on Thursday,BayStreet.CA reports. BMO Capital Markets currently has a market perform rating on the stock.

Other equities research analysts also recently issued research reports about the company. Royal Bank Of Canada set a C$53.00 price objective on Great-West Lifeco and gave the company a "sector perform" rating in a research report on Tuesday, April 15th. National Bankshares decreased their target price on Great-West Lifeco from C$53.00 to C$52.00 and set a "sector perform" rating for the company in a report on Thursday, May 8th. Barclays lifted their target price on Great-West Lifeco from C$56.00 to C$57.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 6th. Jefferies Financial Group decreased their price target on Great-West Lifeco from C$58.00 to C$57.00 in a report on Monday, April 21st. Finally, CIBC reduced their target price on Great-West Lifeco from C$60.00 to C$57.00 and set an "outperform" rating for the company in a research note on Thursday, May 1st. Six investment analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of C$56.67.

Great-West Lifeco Stock Performance

GWO stock traded down C$0.24 during midday trading on Thursday, reaching C$53.04. The company's stock had a trading volume of 1,384,720 shares, compared to its average volume of 2,932,132. The firm has a market capitalization of C$49.38 billion, a price-to-earnings ratio of 12.14, a PEG ratio of 2.26 and a beta of 0.84. The stock has a fifty day simple moving average of C$51.62 and a two-hundred day simple moving average of C$51.95. Great-West Lifeco has a 1 year low of C$41.26 and a 1 year high of C$57.61.

Great-West Lifeco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 29th will be issued a $0.61 dividend. This represents a $2.44 annualized dividend and a yield of 4.6%. The ex-dividend date is Friday, August 29th. Great-West Lifeco's dividend payout ratio is presently 50.79%.

Great-West Lifeco announced that its Board of Directors has initiated a stock buyback plan on Tuesday, August 5th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other news, Senior Officer Dervla Mary Tomlin sold 36,700 shares of the stock in a transaction on Friday, May 16th. The stock was sold at an average price of C$51.05, for a total transaction of C$1,873,520.32. Also, Senior Officer David Martin Harney sold 20,700 shares of the stock in a transaction on Monday, May 26th. The stock was sold at an average price of C$51.85, for a total value of C$1,073,263.95. Corporate insiders own 70.70% of the company's stock.

Great-West Lifeco Company Profile

Great-West Lifeco is one of the three big Canadian life insurance firms. With just under half of the firm's profit and revenue in Canada, Great-West also operates in the U.S. and Europe. In Canada, Great-West provides both individual and group insurance. In the United States, Great-West operates Putnam Investments and defined-contribution recordkeeping firm Empower Retirement.