Globe Life (NYSE:GL) to Repurchase $2.50 billion in Outstanding Stock

Globe Life (NYSE:GL) declared that its board has initiated a stock repurchase program on Monday, August 10th, RTT News reports. The company plans to buyback $2.50 billion in shares. This buyback authorization permits the company to reacquire up to 17.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Globe Life Trading Down 0.4%

NYSE:GL traded down $0.77 during trading hours on Monday, reaching $183.08. 478,694 shares of the company were exchanged, compared to its average volume of 703,405. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.07 and a quick ratio of 0.07. The firm has a market cap of $14.07 billion, a price-to-earnings 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 stock has a 50 day simple moving average of $175.06 and a 200 day simple moving average of $156.22.

Globe Life (NYSE:GL) last issued its earnings results on Wednesday, July 22nd. The company reported $3.61 earnings per share for the quarter, missing analysts’ consensus estimates of $3.67 by ($0.06). Globe Life had a net margin of 19.58% and a return on equity of 20.52%. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same quarter in the previous year, the business posted $3.05 EPS. Globe Life’s revenue 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. As a group, analysts predict that Globe Life will post 15.7 EPS for the current year.

Globe Life Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Monday, October 5th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, October 5th. Globe Life’s payout ratio is currently 8.76%.

Analysts Set New Price Targets

Several equities analysts have weighed in on GL shares. Piper Sandler raised their target price on shares of Globe Life from $175.00 to $200.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Jefferies Financial Group increased their price target on shares of Globe Life from $147.00 to $166.00 and gave the company a “hold” rating in a research report on Friday, July 10th. Keefe, Bruyette & Woods reduced their price objective on Globe Life from $192.00 to $190.00 and set an “outperform” rating on the stock in a research report on Friday, July 24th. JPMorgan Chase & Co. increased their price objective on Globe Life from $181.00 to $201.00 and gave the company an “overweight” rating in a research note on Tuesday, July 21st. Finally, TD Cowen increased their price objective on Globe Life from $215.00 to $225.00 and gave the company a “buy” rating in a research note on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $191.67.

Insider Activity at Globe Life

In other news, CFO Thomas Peter Kalmbach sold 21,000 shares of the stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $180.06, for a total value of $3,781,260.00. Following the completion of the sale, the chief financial officer owned 50,568 shares of the company’s stock, valued at $9,105,274.08. This represents a 29.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Frank M. Svoboda sold 10,000 shares of the firm’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $166.68, for a total transaction of $1,666,800.00. Following the completion of the transaction, the chief executive officer directly owned 54,020 shares in the company, valued at approximately $9,004,053.60. This represents a 15.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 191,747 shares of company stock valued at $33,480,408 over the last quarter. Company insiders own 2.11% of the company’s stock.

About Globe Life

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.