Allete (NYSE:ALE) Reaches New 52-Week High - Still a Buy?

Key Points

• Allete, Inc. (NYSE:ALE) reached a new 52-week high of $67.39 during trading, reflecting strong market interest with a volume of 65,964 shares.
• Analysts maintain a consensus rating of "Hold" on Allete, with Weiss Ratings restating a "hold (c+)" rating amid concerns over recent earnings misses.
• The company declared a quarterly dividend of $0.73 per share, representing an annual yield of 4.3% and a relatively high dividend payout ratio of 92.11%.

Shares of Allete, Inc. (NYSE:ALE - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $67.37 and last traded at $67.39, with a volume of 65964 shares. The stock had previously closed at $67.21.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "hold (c+)" rating on shares of Allete in a research report on Saturday, September 27th. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, Allete presently has a consensus rating of "Hold".

Allete Stock Up 0.2%

The business has a fifty day simple moving average of $64.84 and a two-hundred day simple moving average of $65.02. The company has a market cap of $3.91 billion, a PE ratio of 21.24 and a beta of 0.83. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.57.

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

Allete Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 1st. Investors of record on Friday, August 15th were issued a $0.73 dividend. This represents a $2.92 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend was Friday, August 15th. Allete's dividend payout ratio (DPR) is currently 92.11%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. UMB Bank n.a. grew 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 valued at $35,000 after purchasing an additional 234 shares during the period. Costello Asset Management INC acquired a new position in Allete in the 1st quarter valued at about $35,000. IFP Advisors Inc grew its stake in shares of Allete by 3,456.3% in the 2nd quarter. IFP Advisors Inc now owns 569 shares of the utilities provider's stock valued at $40,000 after buying an additional 553 shares during the period. Hexagon Capital Partners LLC grew its stake in shares of Allete by 44.5% in the 1st quarter. Hexagon Capital Partners LLC now owns 591 shares of the utilities provider's stock valued at $39,000 after buying an additional 182 shares during the period. Finally, Bayforest Capital Ltd purchased a new stake in shares of Allete in the 2nd quarter valued at approximately $45,000. Hedge funds and other institutional investors own 76.55% of the company's stock.

Allete Company Profile

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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