Allete (NYSE:ALE) Reaches New 12-Month High - Should You Buy?

Key Points

• Allete, Inc. reached a new 52-week high of $66.59 during mid-day trading, closing at $66.44 with a market cap of $3.86 billion.
• The company reported earnings per share of $0.61 for the last quarter, missing estimates of $0.85, with a year-over-year revenue increase of 1.6% to $360.30 million.
• Allete announced a quarterly dividend of $0.73, representing a 4.4% dividend yield, with a payout ratio currently at 92.11%.

Allete, Inc. (NYSE:ALE - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $66.59 and last traded at $66.44, with a volume of 58785 shares traded. The stock had previously closed at $66.31.

Allete Stock Up 0.2%

The company has a market capitalization of $3.86 billion, a PE ratio of 20.96 and a beta of 0.84. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.81 and a current ratio of 1.34. The company's 50-day moving average is $64.77 and its 200 day moving average is $64.99.

Allete (NYSE:ALE - Get Free Report) last issued its earnings results on Thursday, August 7th. The utilities provider reported $0.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.85 by ($0.24). The firm had revenue of $360.30 million during the quarter, compared to the consensus estimate of $425.30 million. Allete had a return on equity of 5.71% and a net margin of 11.98%.The company's quarterly revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.82 EPS.

Allete Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 1st. Shareholders of record on Friday, August 15th were issued a $0.73 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a $2.92 dividend on an annualized basis and a dividend yield of 4.4%. Allete's dividend payout ratio (DPR) is presently 92.11%.

Institutional Investors Weigh In On Allete

Several institutional investors have recently modified their holdings of ALE. Public Employees Retirement System of Ohio bought a new stake in Allete in the 4th quarter worth approximately $72,000. Wealth Enhancement Advisory Services LLC grew its stake in shares of Allete by 24.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 8,831 shares of the utilities provider's stock valued at $572,000 after purchasing an additional 1,761 shares during the period. Versant Capital Management Inc increased its position in shares of Allete by 309.4% during the 1st quarter. Versant Capital Management Inc now owns 1,175 shares of the utilities provider's stock valued at $77,000 after purchasing an additional 888 shares during the last quarter. GAMMA Investing LLC lifted its stake in shares of Allete by 7,468.1% in the 1st quarter. GAMMA Investing LLC now owns 120,560 shares of the utilities provider's stock worth $7,921,000 after purchasing an additional 118,967 shares during the period. Finally, UMB Bank n.a. boosted its holdings in shares of Allete by 78.0% in the first quarter. UMB Bank n.a. now owns 534 shares of the utilities provider's stock worth $35,000 after buying an additional 234 shares during the last quarter. 76.55% of the stock is owned by hedge funds and other institutional investors.

About Allete

ALLETE, Inc operates as an energy company. The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, biomass co-fired / natural gas, hydroelectric, wind, and solar. In addition, the company provides regulated utility electric services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric services in northeastern Minnesota to approximately 150,000 retail customers and 14 non-affiliated municipal customers.

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