On September 12, 2023, Michael Henrie, the Senior Vice President and Chief Accounting Officer of Globe Life Inc (GL, Financial), sold 2,500 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 10,050 shares and made no purchases.
Globe Life Inc is a leading provider of life and health insurance products, focusing on the middle-income American market. The company operates through its subsidiaries, offering a diverse range of insurance products including term life insurance, whole life insurance, children's life insurance, accidental benefits insurance, and mortgage protection insurance.
The insider's recent sell-off has raised eyebrows among investors and market analysts. Over the past year, there have been 35 insider sells and no insider buys at Globe Life Inc. This trend is illustrated in the following chart:
The relationship between insider trading activity and stock price is often scrutinized by investors. In the case of Globe Life Inc, the stock was trading at $110.37 per share on the day of the insider's recent sell, giving the company a market cap of $10.45 billion.
The company's price-earnings ratio stands at 12.88, which is slightly higher than the industry median of 12.28 but lower than the company's historical median price-earnings ratio. This suggests that the stock is fairly valued at its current price.
The GuruFocus Value of Globe Life Inc is $114.79, resulting in a price-to-GF-Value ratio of 0.96. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, the insider's recent sell-off of Globe Life Inc shares, coupled with the company's current valuation metrics, suggests that the stock is fairly valued at its current price. However, the lack of insider buys over the past year could be a cause for concern among potential investors. As always, investors are advised to conduct their own thorough research before making any investment decisions.
