Globe Life (NYSE:GL) Inc., a life insurance company, has announced a temporary suspension of trading under its employee benefit plans due to a change in record keepers. The blackout period, which affects transactions in the company's Savings and Investment Plan, is set to begin on December 6, 2024, at 3:00 p.m. Central Time and is expected to conclude during the week of December 29, 2024.
During this blackout period, participants in the Plan will not be able to conduct transactions such as accessing account balances, transferring or diversifying investments, or obtaining withdrawals, loans, or distributions. Specifically, transactions in the Globe Life Inc. Stock Fund, which invests in the company's common stock, will be suspended.
The transition from the current record keeper, Empower Retirement, to Fidelity Investments necessitates this temporary trading halt. Globe Life has communicated this upcoming blackout to all affected directors and officers as of November 14, 2024, to ensure compliance with the regulations.
Affected individuals seeking information about the blackout period's status can contact Fidelity directly during the week of December 29, 2024. Additionally, questions about the blackout period can be addressed to Dana Sigler at Globe Life Inc.
This information is based on a press release statement.
In other recent news, Globe Life Inc. has been a subject of interest following strong Q3 2024 financial results and revised earnings per share (EPS) estimates by Truist Securities.
The life and health insurance provider reported a surge in net income to $303 million and a 29% increase in net operating income to $308 million. Notably, life insurance premium revenue grew by 4% to $819 million, while health insurance premiums saw a 7% rise to $354 million.
Truist Securities, following an analysis of the company's performance, revised its EPS estimates for 2024 and 2025, leading to a price target increase to $105.00 from the previous $90.00. The 2024 EPS forecast was adjusted to $12.30, up from $11.95, and the 2025 EPS estimate was raised to $13.55 from $12.75. These changes were influenced by Globe Life's management guidance and the company's recent financial trajectory.
Among other recent developments, Globe Life plans to invest between $1.1 billion and $1.3 billion in fixed maturities at an average yield of 5.8% to 5.9% for 2024. The company also repurchased 5.8 million shares for $580 million in Q3 and plans to distribute about $21 million in dividends for the rest of the year.
InvestingPro Insights
Globe Life Inc.'s recent announcement of a temporary trading suspension aligns with its ongoing financial management strategies. According to InvestingPro data, the company's market capitalization stands at $9.15 billion, reflecting its significant presence in the life insurance sector. Globe Life's price-to-earnings (P/E) ratio of 9.33 suggests that the stock may be undervalued relative to its earnings, which could be of interest to value investors during this transition period.
InvestingPro Tips highlight that Globe Life has maintained dividend payments for an impressive 54 consecutive years, demonstrating a strong commitment to shareholder returns. This consistent dividend history may provide reassurance to employees and investors during the temporary blackout period. Additionally, the company's profitability over the last twelve months, as noted by another InvestingPro Tip, indicates financial stability as it undergoes this administrative change.
For those seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into Globe Life's financial position and future prospects.
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