Globe Life (NYSE:GL) Stock Breaks Above 200-Day Moving Average – What’s Next?

Globe Life Inc. (NYSE:GL) shares crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $160.22 and traded as high as $162.09. Globe Life shares last traded at $161.9660, with a volume of 393,081 shares.

Analysts Set New Price Targets

GL has been the subject of several analyst reports. Piper Sandler downgraded shares of Globe Life from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $200.00 to $165.00 in a report on Friday, October 23rd. Wells Fargo & Company cut their target price on Globe Life from $191.00 to $180.00 and set an “overweight” rating on the stock in a research note on Monday, October 26th. Keefe, Bruyette & Woods reduced their target price on Globe Life from $192.00 to $190.00 and set an “outperform” rating for the company in a report on Friday, July 24th. UBS Group set a $165.00 price target on Globe Life in a research report on Friday, October 23rd. Finally, TD Cowen cut their price objective on Globe Life from $225.00 to $215.00 and set a “buy” rating on the stock in a research report on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $181.50.

Globe Life Stock Performance

The company has a market cap of $12.21 billion, a PE ratio of 10.83 and a beta of 0.47. The business’s 50-day moving average is $166.24 and its 200 day moving average is $160.47. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.07 and a current ratio of 0.07.

Globe Life (NYSE:GL) last announced its quarterly earnings results on Wednesday, October 21st. The company reported $4.84 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.90 by ($0.06). The business had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.56 billion. Globe Life had a net margin of 18.89% and a return on equity of 19.51%. The firm’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.81 EPS. On average, equities research analysts predict that Globe Life Inc. will post 15.48 EPS for the current fiscal year.

Globe Life Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 1st. Stockholders of record on Friday, January 8th will be given a dividend of $0.33 per share. The ex-dividend date of this dividend is Friday, January 8th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.8%. Globe Life’s payout ratio is presently 8.83%.

Globe Life announced that its board has initiated a stock buyback plan on Monday, August 10th that authorizes the company to repurchase $2.50 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 17.7% of its shares through open market purchases. Share buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Robert Hensley sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the transaction, the executive vice president directly owned 12,384 shares of the company’s stock, valued at approximately $2,106,146.88. The trade was a 44.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Michael Majors sold 14,377 shares of the stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $154.48, for a total transaction of $2,220,958.96. Following the transaction, the executive vice president directly owned 39,141 shares of the company’s stock, valued at $6,046,501.68. This trade represents a 26.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.11% of the company’s stock.

Institutional Investors Weigh In On Globe Life

Several hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in Globe Life during the 2nd quarter worth about $987,901,000. Pzena Investment Management LLC raised its holdings in Globe Life by 156.6% in the 3rd quarter. Pzena Investment Management LLC now owns 3,479,093 shares of the company’s stock worth $576,312,000 after purchasing an additional 2,123,282 shares during the period. Equity Investment Corp purchased a new position in Globe Life during the second quarter valued at $122,971,000. Bank of America Corp DE purchased a new stake in shares of Globe Life during the second quarter worth approximately $121,638,000. Finally, Bank of New York Mellon Corp purchased a new position in Globe Life in the 2nd quarter worth approximately $97,182,000. 81.61% of the stock is currently owned by hedge funds and other institutional investors.

Globe Life Company Profile

Globe Life Inc. is a U.S.-based insurance holding company that provides life and supplemental health insurance through its subsidiaries. Its products include term and whole life insurance, Medicare Supplement insurance, and supplemental health coverage such as accident, cancer, and critical illness policies. The company distributes insurance through a mix of exclusive agents, independent agents, and direct marketing. Its operating companies include Globe Life and Accident Insurance Company, American Income Life, Liberty National, Family Heritage Life, and United American.