Globus Medical Approves $500M Share Buyback Program

Globus Medical has announced a $500 million share repurchase program, reflecting management's confidence in the company's long-term growth and profitability despite recent stock price volatility. Executive leadership highlighted a disconnect between the company's intrinsic value and its market valuation, prompting the buyback initiative aimed at enhancing shareholder value. Analysts maintain a bullish outlook with an average one-year price target of $84, implying a 45% upside, while GuruFocus estimates the stock's fair value at over $101, suggesting even greater potential gains. The repurchase program will be executed at management's discretion based on market conditions and may utilize open market or private transactions without a set expiration date. Globus Medical's strong financial position, including robust cash reserves and minimal debt, supports funding the buybacks. Overall, the move underscores the company's strategy to prioritize sustainable business growth and shareholder returns in the musculoskeletal solutions sector.