Globe Life (NYSE:GL) Issues Earnings Results, Misses Estimates By $0.06 EPS

Key Points

• Globe Life reported quarterly EPS of $3.61, missing Wall Street’s estimate of $3.67 by $0.06. The company still posted a strong net margin of 19.38% and return on equity of 20.94%.
• The stock fell slightly after the results, trading down $0.63 to $183.71 on higher-than-normal volume. Even so, shares remain near their 52-week high of $191.55 and above both the 50-day and 200-day moving averages.
• Globe Life also announced a quarterly dividend of $0.33 per share, payable July 31, implying an annualized yield of about 0.7%. Analysts remain generally positive, with a Moderate Buy consensus and an average price target of $187.60.

Globe Life (NYSE:GL - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $3.61 earnings per share for the quarter, missing the consensus estimate of $3.67 by ($0.06), Zacks reports. Globe Life had a net margin of 19.38% and a return on equity of 20.94%.

Globe Life Stock Performance

Globe Life stock traded down $0.63 during trading hours on Wednesday, reaching $183.71. 899,269 shares of the company were exchanged, compared to its average volume of 550,475. Globe Life has a 12 month low of $122.48 and a 12 month high of $191.55. The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 0.38. The stock has a 50-day moving average of $167.76 and a 200 day moving average of $152.23. The firm has a market cap of $14.26 billion, a price-to-earnings ratio of 12.70 and a beta of 0.47.

Globe Life Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Monday, July 6th will be given a dividend of $0.33 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.32 dividend on an annualized basis and a yield of 0.7%. Globe Life's dividend payout ratio is presently 9.13%.

Insiders Place Their Bets

In other news, CFO Thomas Peter Kalmbach sold 7,936 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $156.59, for a total value of $1,242,698.24. Following the completion of the sale, the chief financial officer directly owned 50,496 shares in the company, valued at approximately $7,907,168.64. The trade was a 13.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Frank M. Svoboda sold 10,000 shares of Globe Life stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.68, for a total value of $1,666,800.00. Following the completion of the transaction, the chief executive officer owned 54,020 shares in the company, valued at $9,004,053.60. The trade was a 15.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 124,187 shares of company stock valued at $19,529,414 in the last three months. Company insiders own 2.11% of the company's stock.

Hedge Funds Weigh In On Globe Life

Large investors have recently bought and sold shares of the stock. CYBER HORNET ETFs LLC acquired a new stake in Globe Life in the 2nd quarter worth $28,000. MUFG Securities EMEA plc acquired a new position in shares of Globe Life during the second quarter valued at about $31,000. Banque Cantonale Vaudoise bought a new stake in shares of Globe Life in the third quarter valued at about $50,000. Summit Securities Group LLC lifted its position in shares of Globe Life by 203.6% in the 4th quarter. Summit Securities Group LLC now owns 422 shares of the company's stock worth $59,000 after acquiring an additional 283 shares during the period. Finally, Brown Brothers Harriman & Co. grew its holdings in shares of Globe Life by 105.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 477 shares of the company's stock worth $67,000 after purchasing an additional 245 shares in the last quarter. 81.61% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

GL has been the topic of several research analyst reports. TD Cowen boosted their price target on shares of Globe Life from $215.00 to $225.00 and gave the company a "buy" rating in a report on Wednesday. Weiss Ratings cut Globe Life from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday. Morgan Stanley boosted their target price on Globe Life from $181.00 to $208.00 and gave the company an "overweight" rating in a research note on Monday, July 6th. JPMorgan Chase & Co. raised their price target on Globe Life from $181.00 to $201.00 and gave the stock an "overweight" rating in a research note on Tuesday. Finally, Wells Fargo & Company boosted their target price on shares of Globe Life from $172.00 to $193.00 and gave the stock an "overweight" rating in a research report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, Globe Life presently has an average rating of "Moderate Buy" and a consensus target price of $187.60.

About Globe Life

Globe Life, traded on the NYSE under the symbol GL, is a U.S.-based insurance holding company that underwrites and distributes a range of life and supplemental health insurance products. Through its subsidiary brands—Globe Life, American Income Life, Liberty National Life, United American Insurance Company and Family Heritage Life—it offers term life, whole life, fixed annuities and supplemental health coverage designed to meet the needs of individuals and families across various socioeconomic segments.

The company's product suite includes low-cost, easy-to-understand life insurance policies, accidental death and dismemberment coverage, hospital indemnity plans and specified disease insurance.

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