Globe Life (NYSE:GL) Shares Cross Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Globe Life shares rose above their 200-day moving average, reaching $162.05 before last trading at $160.57. Analysts maintain a “Moderate Buy” consensus, with an average price target of $181.50.
• The company’s latest quarter showed mixed results: earnings per share of $4.84 missed estimates by $0.06, while revenue of $1.60 billion exceeded forecasts and increased 5.5% year over year.
• Globe Life offers a $0.33 quarterly dividend, yielding 0.8%, and has authorized a $2.5 billion share-repurchase program. However, two executives recently sold shares, reducing their holdings.

Globe Life Inc. (NYSE:GL - Get Free Report)'s share price crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $159.54 and traded as high as $162.05. Globe Life shares last traded at $160.57, with a volume of 641,646 shares trading hands.

Analysts Set New Price Targets

A number of research firms have commented on GL. Jefferies Financial Group raised their price target on shares of Globe Life from $147.00 to $166.00 and gave the stock a "hold" rating in a report on Friday, July 10th. JPMorgan Chase & Co. upped their price objective on shares of Globe Life from $193.00 to $195.00 and gave the company an "overweight" rating in a report on Thursday, October 15th. Piper Sandler cut shares of Globe Life from an "overweight" rating to a "neutral" rating and cut their price objective for the stock from $200.00 to $165.00 in a research report on Friday, October 23rd. UBS Group set a $165.00 price objective on shares of Globe Life in a research report on Friday, October 23rd. Finally, Morgan Stanley reduced their target price on Globe Life from $208.00 to $197.00 and set an "overweight" rating for the company in a research note on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $181.50.

Globe Life Price Performance

The firm has a market capitalization of $12.34 billion, a PE ratio of 10.74 and a beta of 0.44. The business has a 50-day moving average of $168.53 and a 200 day moving average of $159.54. The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 0.43.

Globe Life (NYSE:GL - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The company reported $4.84 earnings per share for the quarter, missing the consensus estimate of $4.90 by ($0.06). Globe Life had a net margin of 18.89% and a return on equity of 19.95%. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter last year, the business posted $4.81 earnings per share. Globe Life's revenue was up 5.5% on a year-over-year basis. As a group, research analysts anticipate that Globe Life Inc. will post 15.48 EPS for the current fiscal year.

Globe Life Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Monday, October 5th will be paid a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, October 5th. Globe Life's payout ratio is presently 8.83%.

Globe Life declared that its Board of Directors has authorized a share buyback program on Monday, August 10th that authorizes the company to buy back $2.50 billion in shares. This repurchase authorization authorizes the company to purchase up to 17.7% of its stock through open market purchases. Share repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, EVP Michael Majors sold 14,377 shares of Globe Life stock in a transaction that occurred on Friday, October 23rd. The shares were sold at an average price of $154.48, for a total value of $2,220,958.96. Following the sale, the executive vice president owned 39,141 shares of the company's stock, valued at approximately $6,046,501.68. The trade was a 26.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Robert Hensley sold 10,000 shares of the company's stock in a transaction that occurred on Tuesday, September 22nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the completion of the transaction, the executive vice president owned 12,384 shares in the company, valued at approximately $2,106,146.88. The trade was a 44.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.11% of the stock is currently owned by corporate insiders.

Institutional Trading of Globe Life

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Globe Life during the 2nd quarter valued at $987,901,000. State Street Corp boosted its holdings in shares of Globe Life by 2.1% in the second quarter. State Street Corp now owns 3,735,409 shares of the company's stock worth $667,443,000 after acquiring an additional 76,745 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Globe Life by 10.2% in the first quarter. Dimensional Fund Advisors LP now owns 2,353,192 shares of the company's stock worth $327,479,000 after acquiring an additional 217,331 shares during the period. Pzena Investment Management LLC purchased a new position in shares of Globe Life in the second quarter valued at $242,256,000. Finally, Swedbank AB grew its position in shares of Globe Life by 15.3% in the first quarter. Swedbank AB now owns 1,109,200 shares of the company's stock valued at $154,367,000 after purchasing an additional 147,200 shares in the last quarter. 81.61% of the stock is currently owned by institutional investors.

Globe Life Company Profile

Globe Life Inc NYSE: GL is an insurance holding company that provides individual life and supplemental health insurance products through a network of wholly owned subsidiaries. Its offerings are designed primarily for middle-income households and include term and whole life insurance, mortgage protection coverage, accident and supplemental health insurance, Medicare supplement policies, and annuities.

The company markets its products through several distribution channels, including exclusive and independent agency networks, direct-to-consumer sales, and workplace or union-affiliated programs.

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