NEW YORK (TheStreet) -- MetLife (MET) shares are down 3.44% to $53.31 in trading on Friday after the insurance provider authorized a $1 billion share buyback program, its second such program in the past seven months.
The company has already spent $967.1 million dollars of the original $1 billion share repurchase program that was initiated in June. The June repurchase program was the first share buyback the company initiated in six years.
"Our approach to capital management remains cautious in light of regulatory uncertainty. Excess capital belongs to MetLife's shareholders and we believe this new program is consistent with our prudent capital-management strategy," said CEO Steve Kandarian.
TheStreet Ratings team rates METLIFE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate METLIFE INC (MET) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- METLIFE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, METLIFE INC increased its bottom line by earning $2.91 versus $1.09 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $2.91).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 115.4% when compared to the same quarter one year prior, rising from $972.00 million to $2,094.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 21.9%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 50.89% to $4,029.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 33.65%.
- You can view the full analysis from the report here: MET Ratings Report