Short-sellers are targeting Globe Life Inc. (NYSE:GL), alleging agency closures, and questionable business practices at the company's subsidiary.

According to JPMorgan analyst Jimmy S. Bhullar, the allegations made in the short-seller report lack credibility and are riddled with inaccuracies.

More Bluster Than Substance

The short-sellers argue that there's federal action being taken against American Income Life (AIL), resulting in disconnected phone numbers and shuttered offices.

Bhullar's investigation turned up starkly different results. Of the 45 supposedly "disconnected" phone lines, the majority were either routed to voicemail or connected to active agents.

A few offices named as "closed" were misrepresented. At least one office is still housing AIL agents while a neighboring tenant vacated, he says.

Globe Life also clarified that any vacant offices reflect a transition to remote work—not signs of distress. AIL has increased its agent count in recent years, defying the short report's implications.

Globe Life also debunked claims about predatory cold-calling and mismanagement of stock buybacks, underscoring the accretive value of repurchases executed below historic highs.

A Bullish Outlook On A Strong Franchise

Bhullar remains undeterred by the report, reiterating an Overweight rating on Globe Life and a price target of $136 by year-end 2025.

The stock's current valuation is compelling, especially considering its resilience against industry challenges. Despite regulatory inquiries hanging in the background, Bhullar views a resolution as a potential catalyst for recovery.

For investors willing to bet on solid fundamentals, Globe Life appears to be a life insurance leader unfairly caught in the short-sellers' crosshairs. With a proven franchise, improved earnings projections, and no signs of business distress, Globe Life's trajectory looks far from short-lived.

Price Action: Globe Life stock was trading at $106.61 at the time of publication.