Great-West Lifeco (TSE:GWO) Stock Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• Great-West Lifeco's shares surpassed their 200-day moving average of C$53.20, reaching a high of C$59.19 during trading, indicating positive momentum in the stock.
• Analysts have upgraded Great-West Lifeco with several target price increases, including UBS Group's "strong-buy" rating and Scotiabank raising its target to C$61.00, reflecting a consensus average price target of C$58.44.
• The company has declared a quarterly dividend of $0.61 per share, representing an annual yield of 4.1%, along with a stock buyback program which suggests management believes the stock is undervalued.

Great-West Lifeco Inc. (TSE:GWO - Get Free Report) shares passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of C$53.20 and traded as high as C$59.19. Great-West Lifeco shares last traded at C$58.96, with a volume of 1,024,936 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on GWO shares. UBS Group upgraded Great-West Lifeco to a "strong-buy" rating in a report on Thursday, October 16th. National Bankshares boosted their price objective on Great-West Lifeco from C$52.00 to C$58.00 and gave the company a "sector perform" rating in a report on Monday. Desjardins boosted their price objective on Great-West Lifeco from C$55.00 to C$60.00 and gave the company a "hold" rating in a report on Wednesday, October 15th. Barclays boosted their price objective on Great-West Lifeco from C$57.00 to C$58.00 and gave the company an "overweight" rating in a report on Wednesday, October 8th. Finally, Scotiabank boosted their price objective on Great-West Lifeco from C$59.00 to C$61.00 and gave the company an "outperform" rating in a report on Thursday, August 7th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of C$58.44.

Great-West Lifeco Price Performance

The company has a fifty day moving average of C$55.70 and a 200-day moving average of C$53.20. The firm has a market cap of C$54.92 billion, a P/E ratio of 14.78, a P/E/G ratio of 2.26 and a beta of 0.65.

Great-West Lifeco Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Monday, September 29th were issued a dividend of $0.61 per share. The ex-dividend date was Friday, August 29th. This represents a $2.44 annualized dividend and a yield of 4.1%. Great-West Lifeco's dividend payout ratio is 58.40%.

Great-West Lifeco announced that its Board of Directors has initiated a stock buyback program on Tuesday, August 5th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

About Great-West Lifeco

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.

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