MCKINNEY, Texas - Globe Life Inc. (NYSE:GL), a provider of life and supplemental health insurance, has announced that its Board of Directors has given the green light for a stock repurchase program of up to $1.3 billion.
This authorization is set to take place over a two-year period concluding on December 31, 2025. The decision was made during the company's regular quarterly board meeting that occurred on Monday.
The repurchase program falls under the company's current stock buyback plan, which is a common strategy used by corporations to return value to shareholders. It involves the company buying back its own shares from the marketplace, which can potentially increase the value of remaining shares by reducing the supply, or simply distribute excess cash to shareholders.
Globe Life, with its focus on providing insurance products to the middle-income market, operates through various distribution channels, including direct consumer sales and a network of exclusive and independent agencies.
The announcement of the repurchase program follows a practice often employed by companies seeking to make use of their capital in ways that can benefit shareholders. Share repurchase programs are typically seen as a sign of confidence by company management in the firm's financial stability and future prospects.
The company's stock will continue to be traded on the New York Stock Exchange under the ticker symbol GL. The information about the repurchase plan is based on a press release statement issued by Globe Life Inc.
InvestingPro Insights
Globe Life Inc. (NYSE:GL) has recently made headlines with its new $1.3 billion stock repurchase program, highlighting management's confidence in the company's financial health and commitment to delivering shareholder value. This move aligns with the company's history of shareholder-friendly activities, which is further evidenced by the InvestingPro Tips indicating that management has been aggressively buying back shares and has raised its dividend for 8 consecutive years.
When it comes to the company's financial metrics, the InvestingPro Data reveals a robust picture. Globe Life's market capitalization stands at $7.12 billion, with an attractive P/E ratio of 7.12, suggesting that the stock could be undervalued relative to its earnings.
The PEG ratio of 0.17 indicates that the company's earnings growth is not fully reflected in its current stock price, potentially offering an appealing entry point for investors.
Moreover, the company has demonstrated solid financial performance with a revenue growth of 5.9% over the last twelve months as of Q1 2024, and a significant return over the last week, with a 14.1% price total return. These figures, coupled with the company's consistent dividend payments over the past 54 years, present Globe Life as a potentially stable investment with a history of returning value to its shareholders.
For those interested in further analysis and additional InvestingPro Tips, Globe Life has more insights available at: https://www.investing.com/pro/GL. Plus, using the coupon code PRONEWS24 will get you an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With numerous additional tips listed on InvestingPro, investors can gain a more comprehensive understanding of the company's financial outlook and strategic positioning.
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