Globe Life (NYSE:GL) Hits New 12-Month Low on Disappointing Earnings

Shares of Globe Life Inc. (NYSE:GL) reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $119.57 and last traded at $123.33, with a volume of 1355635 shares trading hands. The stock had previously closed at $123.97.

The company reported $3.07 earnings per share for the quarter, missing the consensus estimate of $3.24 by ($0.17). Globe Life had a net margin of 18.53% and a return on equity of 22.32%. The company had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the prior year, the firm posted $2.78 EPS. The business’s revenue was up 4.5% on a year-over-year basis.

Globe Life Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 1st. Stockholders of record on Thursday, July 3rd will be given a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a dividend yield of 0.88%. The ex-dividend date of this dividend is Thursday, July 3rd. Globe Life’s payout ratio is 9.04%.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on GL shares. Evercore ISI upgraded Globe Life from an “in-line” rating to an “outperform” rating and lifted their price objective for the company from $132.00 to $143.00 in a report on Wednesday, January 8th. Keefe, Bruyette & Woods boosted their price target on shares of Globe Life from $137.00 to $145.00 and gave the company an “outperform” rating in a report on Wednesday, February 12th. Piper Sandler increased their price objective on shares of Globe Life from $140.00 to $152.00 and gave the company an “overweight” rating in a research note on Wednesday, April 2nd. Wells Fargo & Company reduced their price objective on shares of Globe Life from $141.00 to $140.00 and set an “overweight” rating for the company in a research note on Thursday, April 10th. Finally, Morgan Stanley lowered their target price on Globe Life from $126.00 to $117.00 and set an “equal weight” rating for the company in a report on Thursday, April 10th. Four investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $137.55.

Insiders Place Their Bets

In related news, CEO James Matthew Darden sold 24,890 shares of Globe Life stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $121.52, for a total value of $3,024,632.80. Following the completion of the sale, the chief executive officer now directly owns 38,973 shares in the company, valued at $4,735,998.96. This trade represents a 38.97 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Frank M. Svoboda sold 11,000 shares of the company’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $122.31, for a total transaction of $1,345,410.00. Following the transaction, the chief executive officer now owns 18,948 shares in the company, valued at $2,317,529.88. The trade was a 36.73 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.97% of the company’s stock.

Institutional Investors Weigh In On Globe Life

Several institutional investors and hedge funds have recently made changes to their positions in GL. Private Trust Co. NA raised its stake in Globe Life by 12.5% in the 4th quarter. Private Trust Co. NA now owns 754 shares of the company’s stock worth $84,000 after acquiring an additional 84 shares during the last quarter. Amalgamated Bank raised its stake in shares of Globe Life by 0.5% in the first quarter. Amalgamated Bank now owns 16,348 shares of the company’s stock worth $2,153,000 after purchasing an additional 85 shares during the last quarter. HighPoint Advisor Group LLC lifted its holdings in shares of Globe Life by 4.0% during the fourth quarter. HighPoint Advisor Group LLC now owns 2,271 shares of the company’s stock worth $276,000 after purchasing an additional 87 shares during the period. Pinnacle Wealth Planning Services Inc. boosted its position in Globe Life by 4.0% in the fourth quarter. Pinnacle Wealth Planning Services Inc. now owns 2,293 shares of the company’s stock valued at $256,000 after buying an additional 88 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its holdings in Globe Life by 0.5% in the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 19,776 shares of the company’s stock worth $2,605,000 after buying an additional 89 shares during the period. 81.61% of the stock is currently owned by institutional investors and hedge funds.

Globe Life Stock Down 0.5 %

The company has a current ratio of 0.05, a quick ratio of 0.05 and a debt-to-equity ratio of 0.50. The business’s 50-day simple moving average is $124.15 and its 200-day simple moving average is $116.61. The company has a market capitalization of $10.27 billion, a PE ratio of 10.32 and a beta of 0.60.

Globe Life Company Profile

Globe Life Inc, through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the United States. The company operates in four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments.