Allete (NYSE:ALE) Sees Large Volume Increase - Still a Buy?

Key Points

• Allete (NYSE:ALE) experienced a significant trading volume increase of 142% on Friday, with approximately 1.12 million shares traded, up from around 465,000 shares the previous session.
• The company reported earnings of $0.61 per share, missing analysts' estimates by $0.24, while revenues were 1.6% higher than the same quarter last year.
• Weiss Ratings has reaffirmed a "hold (c+)" rating for Allete, indicating a consensus rating of "Hold" among analysts.

Allete, Inc. (NYSE:ALE - Get Free Report) shares saw unusually-strong trading volume on Friday . Approximately 1,123,537 shares traded hands during mid-day trading, an increase of 142% from the previous session's volume of 464,915 shares.The stock last traded at $67.20 and had previously closed at $66.72.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed 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 data from MarketBeat, Allete has a consensus rating of "Hold".

Allete Stock Performance

The stock has a 50-day moving average price of $64.81 and a 200 day moving average price of $65.02. The firm has a market cap of $3.90 billion, a PE ratio of 21.20 and a beta of 0.83. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 0.81.

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

Allete Announces Dividend

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

Institutional Trading of Allete

Hedge funds and other institutional investors have recently modified their holdings of the business. UMB Bank n.a. increased its position in shares of Allete by 78.0% during the first quarter. UMB Bank n.a. now owns 534 shares of the utilities provider's stock worth $35,000 after acquiring an additional 234 shares during the last quarter. Costello Asset Management INC purchased a new stake in shares of Allete during the first quarter worth about $35,000. Hexagon Capital Partners LLC increased its holdings in Allete by 44.5% in the first 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 last quarter. IFP Advisors Inc increased its holdings in Allete by 3,456.3% in the second 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 last quarter. Finally, Bayforest Capital Ltd bought a new stake in Allete during the second quarter valued at $45,000. 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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