Globe Life (NYSE:GL) Shares Gap Up on Better-Than-Expected Earnings

Globe Life Inc. (NYSE:GL) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $88.28, but opened at $94.01. Globe Life shares last traded at $90.29, with a volume of 35,326 shares traded.

The company reported $2.97 earnings per share for the quarter, beating analysts’ consensus estimates of $2.90 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.45 billion. Globe Life had a net margin of 18.07% and a return on equity of 23.01%. Globe Life’s revenue was up 8.6% compared to the same quarter last year. During the same period last year, the business earned $2.61 EPS.

Globe Life Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 1st. Stockholders of record on Friday, July 5th will be paid a $0.24 dividend. The ex-dividend date of this dividend is Friday, July 5th. This represents a $0.96 dividend on an annualized basis and a dividend yield of 1.06%. Globe Life’s dividend payout ratio (DPR) is currently 9.17%.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Morgan Stanley raised their target price on Globe Life from $62.00 to $65.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 10th. Evercore ISI raised their price objective on shares of Globe Life from $83.00 to $86.00 and gave the stock an “in-line” rating in a report on Wednesday, June 26th. Raymond James reaffirmed a “strong-buy” rating on shares of Globe Life in a report on Tuesday, May 21st. StockNews.com cut shares of Globe Life from a “buy” rating to a “hold” rating in a research note on Saturday, April 20th. Finally, Keefe, Bruyette & Woods upgraded Globe Life from a “market perform” rating to an “outperform” rating and reduced their price objective for the stock from $130.00 to $110.00 in a research note on Wednesday, April 24th. Five research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $104.22.

Insider Transactions at Globe Life

In related news, EVP Robert Edward Hensley acquired 2,500 shares of the business’s stock in a transaction on Tuesday, May 28th. The stock was acquired at an average cost of $82.17 per share, with a total value of $205,425.00. Following the acquisition, the executive vice president now directly owns 7,290 shares in the company, valued at approximately $599,019.30. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In other news, CEO James Matthew Darden purchased 2,000 shares of the company’s stock in a transaction that occurred on Thursday, May 16th. The stock was bought at an average cost of $84.82 per share, with a total value of $169,640.00. Following the completion of the purchase, the chief executive officer now owns 37,973 shares in the company, valued at $3,220,869.86. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Robert Edward Hensley acquired 2,500 shares of the firm’s stock in a transaction dated Tuesday, May 28th. The shares were purchased at an average cost of $82.17 per share, for a total transaction of $205,425.00. Following the completion of the acquisition, the executive vice president now directly owns 7,290 shares in the company, valued at $599,019.30. The disclosure for this purchase can be found here. Insiders acquired a total of 5,000 shares of company stock valued at $417,280 over the last 90 days. Company insiders own 1.51% of the company’s stock.

Institutional Investors Weigh In On Globe Life

Several large investors have recently bought and sold shares of GL. LRI Investments LLC raised its position in Globe Life by 898.4% during the second quarter. LRI Investments LLC now owns 619 shares of the company’s stock valued at $51,000 after purchasing an additional 557 shares during the period. Family Firm Inc. bought a new stake in Globe Life in the second quarter worth $54,000. TrueWealth Advisors LLC boosted its stake in Globe Life by 183.0% during the second quarter. TrueWealth Advisors LLC now owns 12,971 shares of the company’s stock worth $1,067,000 after buying an additional 8,388 shares during the period. &PARTNERS bought a new position in Globe Life during the second quarter valued at $311,000. Finally, Lecap Asset Management Ltd. purchased a new stake in shares of Globe Life in the second quarter valued at $3,243,000. Institutional investors own 81.61% of the company’s stock.

Globe Life Stock Up 2.1 %

The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.05 and a current ratio of 0.05. The company’s fifty day moving average price is $83.40 and its 200-day moving average price is $99.69. The stock has a market cap of $8.12 billion, a P/E ratio of 8.44 and a beta of 0.81.

About Globe Life

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.