MetLife (NYSE:MET) to Repurchase $3.00 billion in Outstanding Shares

Key Points

• MetLife authorized a $3.0 billion share repurchase program, allowing the company to buy back up to 4.8% of its outstanding shares through open-market purchases.
• MetLife reported quarterly EPS of $2.43, beating estimates of $2.30, while revenue rose 10.5% year over year to $19.07 billion but fell short of expectations.
• The company declared a quarterly dividend of $0.5925 per share, equivalent to an annualized $2.37 payout and a 2.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $100.50.

MetLife (NYSE:MET - Get Free Report) declared that its board has initiated a share repurchase plan on Wednesday, August 5th, RTT News reports. The company plans to repurchase $3.00 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 4.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's management believes its shares are undervalued.

MetLife Stock Performance

MET stock traded up $0.32 during trading hours on Wednesday, reaching $96.45. The stock had a trading volume of 4,686,212 shares, compared to its average volume of 3,968,851. The stock has a 50-day simple moving average of $89.44 and a 200 day simple moving average of $80.54. MetLife has a fifty-two week low of $67.33 and a fifty-two week high of $97.80. The stock has a market capitalization of $62.06 billion, a PE ratio of 18.69, a price-to-earnings-growth ratio of 0.74 and a beta of 0.78. The company has a debt-to-equity ratio of 0.53, a current ratio of 0.20 and a quick ratio of 0.20.

MetLife (NYSE:MET - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $2.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.30 by $0.13. MetLife had a return on equity of 22.60% and a net margin of 4.66%.The company had revenue of $19.07 billion during the quarter, compared to analysts' expectations of $19.67 billion. During the same period last year, the firm posted $2.02 earnings per share. The business's revenue was up 10.5% on a year-over-year basis. Analysts predict that MetLife will post 9.89 EPS for the current fiscal year.

MetLife Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Tuesday, August 4th will be given a dividend of $0.5925 per share. The ex-dividend date of this dividend is Tuesday, August 4th. This represents a $2.37 dividend on an annualized basis and a yield of 2.5%. MetLife's dividend payout ratio is currently 45.93%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Keefe, Bruyette & Woods boosted their target price on MetLife from $98.00 to $105.00 and gave the company an "outperform" rating in a research note on Monday, July 13th. UBS Group lifted their price objective on shares of MetLife from $102.00 to $105.00 and gave the company a "buy" rating in a report on Wednesday, July 8th. TD Cowen boosted their price objective on shares of MetLife from $87.00 to $105.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. Evercore set a $96.00 target price on shares of MetLife in a report on Thursday, April 9th. Finally, Jefferies Financial Group lifted their price target on shares of MetLife from $97.00 to $103.00 and gave the company a "buy" rating in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, MetLife has a consensus rating of "Moderate Buy" and an average target price of $100.50.

MetLife Company Profile

MetLife, Inc is a global provider of insurance, annuities and employee benefit programs. Headquartered in New York City, the company offers a range of risk protection and retirement solutions to individuals, employers and institutional clients. Its core businesses include life insurance, group benefits, retirement products such as annuities, and supplemental health products including dental and disability coverage.

In addition to traditional life and group insurance, MetLife provides workplace benefits and voluntary products distributed through employer-sponsored programs.

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