Frank Svoboda, CEO of
Globe Life (GL), recently bought 5,000 shares across two days. The buys increased his position by 4%, and came to a total cost just over $420,000.
He was joined by the company’s Co-Chairman of the Board, who bought 3,000 shares in total, at a cost of over $250,000. And the company CFO recently picked up $42,214 worth of shares. Going back to 2023, insiders were more likely to be sellers of shares rather than buyers.
Overall, Globe Life insiders own 2.2% of shares.
The life insurance provider is down nearly 20% over the past year.
Operationally, Globe has been faring well. Higher interest rates have improved performance on the company’s investments, with revenues up 7% and earnings up nearly 14%.
Plus, shares trade at about 10 times forward earnings.
Life insurance companies tend to perform well over long periods of time, although they also tend to have lower demand than property and casualty insurance.
Action to take: Shares are trading at a reasonable valuation for investors today, and the stock is trending higher off its April lows.
Plus, Globe pays a 1.1% dividend.
For traders, the continued move higher off the lows looks likely in the months ahead. The July $85 calls, last trading for about $4.00, could see mid-double-digit returns on a further trend higher in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
