Willis Towers Watson Public (NASDAQ:WTW) to Repurchase $1.50 billion in Outstanding Stock

Key Points

• Willis Towers Watson Public has authorized a $1.50 billion share buyback plan, representing up to 4.6% of its outstanding shares, signaling management's belief that the stock is undervalued.
• The company reported earnings of $2.86 per share for its last quarter, exceeding estimates and reflecting a slight decrease in revenue year-over-year.
• Willis Towers Watson Public also declared a quarterly dividend of $0.92 per share, with a payout ratio of 252.05%.

Willis Towers Watson Public (NASDAQ:WTW - Get Free Report) declared that its Board of Directors has authorized a share buyback plan on Thursday, September 18th, RTT News reports. The company plans to buyback $1.50 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 4.6% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Willis Towers Watson Public Trading Up 1.5%

Shares of NASDAQ WTW traded up $5.01 during midday trading on Friday, hitting $336.71. The company's stock had a trading volume of 1,309,446 shares, compared to its average volume of 457,743. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.58. The business's 50 day moving average is $324.16 and its two-hundred day moving average is $317.62. Willis Towers Watson Public has a 12-month low of $286.00 and a 12-month high of $344.14. The firm has a market cap of $32.85 billion, a P/E ratio of 230.62, a price-to-earnings-growth ratio of 2.64 and a beta of 0.71.

Willis Towers Watson Public (NASDAQ:WTW - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.65 by $0.21. The firm had revenue of $2.26 billion for the quarter, compared to the consensus estimate of $2.23 billion. Willis Towers Watson Public had a return on equity of 21.60% and a net margin of 1.40%.The company's revenue for the quarter was down .2% on a year-over-year basis. During the same period in the prior year, the business posted $2.55 earnings per share. As a group, equities research analysts expect that Willis Towers Watson Public will post 17.32 EPS for the current year.

Willis Towers Watson Public Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.92 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $3.68 dividend on an annualized basis and a yield of 1.1%. Willis Towers Watson Public's payout ratio is currently 252.05%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Wolfe Research upgraded Willis Towers Watson Public to a "hold" rating in a research report on Monday. Morgan Stanley lifted their price target on Willis Towers Watson Public from $335.00 to $345.00 and gave the company an "equal weight" rating in a research report on Monday, August 18th. Cantor Fitzgerald began coverage on Willis Towers Watson Public in a research note on Wednesday, August 13th. They set a "neutral" rating and a $355.00 price objective for the company. Citigroup began coverage on Willis Towers Watson Public in a research note on Wednesday, August 13th. They issued a "neutral" rating and a $351.00 price target for the company. Finally, Barclays decreased their price target on Willis Towers Watson Public from $316.00 to $305.00 and set an "underweight" rating for the company in a research note on Monday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Willis Towers Watson Public has an average rating of "Moderate Buy" and a consensus price target of $362.92.

About Willis Towers Watson Public

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments: Health, Wealth & Career and Risk & Broking. The company offers strategy and design consulting, plan management service and support, broking and administration services for health, wellbeing, and other group benefit program, including medical, dental, disability, life, voluntary benefits and other coverages; actuarial support, plan design, and administrative services for pension and retirement savings plans; retirement consulting services and solutions; and integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services.

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