Share Repurchase Program Approved by Globe Life (NYSE:GL) Board of Directors

Key Points

• Globe Life’s board authorized a $2.5 billion share repurchase program, allowing the company to buy back up to 17.7% of its outstanding shares through open-market purchases.
• The insurer reported quarterly revenue of $1.60 billion, up 8% year over year, but earnings of $3.61 per share fell short of analysts’ $3.67 estimate. Globe Life also declared a quarterly dividend of $0.33 per share, implying a 0.7% yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $191.67; however, company insiders sold 191,747 shares worth approximately $33.5 million over the past 90 days.

Globe Life (NYSE:GL - Get Free Report) announced that its Board of Directors has initiated a share buyback program on Monday, August 10th, RTT News reports. The company plans to buyback $2.50 billion in shares. This buyback authorization allows the company to purchase up to 17.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Globe Life Stock Performance

Shares of GL traded down $0.77 during mid-day trading on Monday, reaching $183.08. 478,694 shares of the company's stock were exchanged, compared to its average volume of 703,405. The business's fifty day simple moving average is $175.06 and its 200-day simple moving average is $156.22. The stock has a market capitalization of $14.07 billion, a PE ratio of 12.16 and a beta of 0.48. Globe Life has a 52-week low of $127.85 and a 52-week high of $191.55. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.07 and a quick ratio of 0.07.

Globe Life (NYSE:GL - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The company reported $3.61 EPS for the quarter, missing the consensus estimate of $3.67 by ($0.06). Globe Life had a net margin of 19.58% and a return on equity of 20.52%. The business had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.59 billion. During the same quarter last year, the company earned $3.05 EPS. The firm's revenue for the quarter was up 8.0% compared to the same quarter last year. Globe Life has set its FY 2026 guidance at 15.550-15.950 EPS. On average, equities research analysts expect that Globe Life will post 15.7 earnings per share for the current 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. The ex-dividend date is Monday, October 5th. This represents a $1.32 annualized dividend and a dividend yield of 0.7%. Globe Life's dividend payout ratio is 8.76%.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Weiss Ratings downgraded Globe Life from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, July 20th. Keefe, Bruyette & Woods lowered their price target on Globe Life from $192.00 to $190.00 and set an "outperform" rating for the company in a report on Friday, July 24th. Piper Sandler increased their price target on shares of Globe Life from $175.00 to $200.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Truist Financial increased their price target on shares of Globe Life from $180.00 to $185.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Finally, TD Cowen raised their price objective on shares of Globe Life from $215.00 to $225.00 and gave the stock a "buy" rating in a report on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $191.67.

Insider Buying and Selling at Globe Life

In related news, CEO James Matthew Darden sold 50,000 shares of the firm's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $182.43, for a total transaction of $9,121,500.00. Following the transaction, the chief executive officer owned 58,451 shares of the company's stock, valued at $10,663,215.93. This trade represents a 46.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Frank M. Svoboda sold 10,000 shares of the business's stock in a transaction dated Friday, June 12th. The shares were 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. This trade represents a 15.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 191,747 shares of company stock valued at $33,480,408. Corporate insiders own 2.11% of the company's stock.

Globe Life Company Profile

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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