Globe Life (NYSE:GL) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Globe Life (NYSE:GL) from a buy rating to a hold rating in a report published on Monday morning, Zacks.com reports. The firm currently has $86.00 price objective on the stock.

According to Zacks, “Niche market focus, strength at distribution channels and strong operating fundamentals should drive long-term growth for Globe Life. Improved life premiums at American Income are driving growth in agent retention and sales activities. Solid premiums at Liberty National and consistent operations at Globe Life are driving the top line. The company remains focused on expanding margins and expects Life and Health premiums to grow 5% and 6% respectively in 2020. Consistent free cash flow generating bodes well. Robust capital position enables effective capital deployment. Shares of Globe Life have underperformed the industry in a year's time. However, administrative expenses have increased over the years and the company expects 5% increase in 2020. Also, high debt level along with low times interest earned concerns. Weak ROE poses financial risk.”

A number of other analysts have also commented on the stock. Piper Sandler reduced their price objective on shares of Globe Life from $87.00 to $77.00 and set a neutral rating for the company in a research note on Thursday, July 2nd. Credit Suisse Group reaffirmed a buy rating on shares of Globe Life in a research note on Wednesday, August 12th. TheStreet raised shares of Globe Life from a c+ rating to a b- rating in a research note on Wednesday, August 19th. Finally, Morgan Stanley increased their price target on shares of Globe Life from $80.00 to $82.00 and gave the stock an underweight rating in a research report on Thursday, August 20th. Four equities research analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $86.57.

Globe Life stock opened at $83.81 on Monday. The company has a 50-day simple moving average of $82.53 and a 200-day simple moving average of $77.40. The firm has a market capitalization of $8.93 billion, a P/E ratio of 12.60 and a beta of 1.10. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.08 and a current ratio of 0.08. Globe Life has a one year low of $56.74 and a one year high of $111.43.

Globe Life (NYSE:GL) last posted its quarterly earnings data on Wednesday, July 22nd. The company reported $1.65 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.53 by $0.12. Globe Life had a net margin of 15.84% and a return on equity of 10.31%. The company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same quarter last year, the firm posted $1.67 EPS. As a group, sell-side analysts forecast that Globe Life will post 6.88 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Monday, October 5th will be given a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a dividend yield of 0.89%. The ex-dividend date of this dividend is Friday, October 2nd. Globe Life’s dividend payout ratio (DPR) is 11.11%.

In related news, CEO Larry M. Hutchison sold 13,000 shares of the firm’s stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $79.09, for a total transaction of $1,028,170.00. Following the transaction, the chief executive officer now owns 678,200 shares of the company’s stock, valued at $53,638,838. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Larry M. Hutchison sold 12,000 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $79.43, for a total transaction of $953,160.00. Following the transaction, the chief executive officer now directly owns 678,200 shares in the company, valued at approximately $53,869,426. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 127,050 shares of company stock worth $10,557,063. Insiders own 3.78% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the stock. APG Asset Management N.V. lifted its position in shares of Globe Life by 0.3% in the second quarter. APG Asset Management N.V. now owns 2,035,216 shares of the company’s stock valued at $134,509,000 after buying an additional 6,816 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Globe Life by 2.4% in the 1st quarter. Geode Capital Management LLC now owns 1,649,892 shares of the company’s stock worth $118,522,000 after buying an additional 39,068 shares during the period. Schroder Investment Management Group boosted its holdings in Globe Life by 51.0% in the 1st quarter. Schroder Investment Management Group now owns 1,496,175 shares of the company’s stock worth $107,530,000 after buying an additional 505,132 shares during the period. Janus Henderson Group PLC boosted its holdings in Globe Life by 18.9% in the 1st quarter. Janus Henderson Group PLC now owns 1,371,735 shares of the company’s stock worth $98,726,000 after buying an additional 217,962 shares during the period. Finally, SPF Beheer BV boosted its holdings in Globe Life by 3.5% in the 1st quarter. SPF Beheer BV now owns 952,346 shares of the company’s stock valued at $68,540,000 after purchasing an additional 32,584 shares during the period. 74.61% of the stock is currently owned by hedge funds and other institutional investors.

About Globe Life

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

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