Allete (NYSE:ALE) Reaches New 12-Month Low - Should You Sell?

Key Points

• Allete's stock reached a new 52-week low of $63.24 during trading, significantly below its previous close of $63.71, indicating potential concerns among investors.
• The company reported earnings per share (EPS) of $0.61 for the last quarter, missing analysts' expectations of $0.85 and showing a modest 1.6% revenue increase compared to the same quarter last year.
• Allete's recent quarterly dividend of $0.73 per share translates to a 4.6% yield, although the company's payout ratio stands at a high 92.11%, raising concerns about its sustainability.

Allete, Inc. (NYSE:ALE - Get Free Report) hit a new 52-week low on Wednesday . The company traded as low as $63.24 and last traded at $63.56, with a volume of 104966 shares. The stock had previously closed at $63.71.

Allete Price Performance

The firm has a market capitalization of $3.68 billion, a P/E ratio of 19.99 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 business has a 50 day simple moving average of $65.18 and a two-hundred day simple moving average of $65.14.

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

Allete Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 1st. Stockholders of record on Friday, August 15th were given a dividend of $0.73 per share. The ex-dividend date was Friday, August 15th. This represents a $2.92 annualized dividend and a dividend yield of 4.6%. Allete's dividend payout ratio is 92.11%.

Hedge Funds Weigh In On Allete

Several institutional investors have recently modified their holdings of ALE. UMB Bank n.a. increased its position in shares of Allete by 78.0% during the 1st 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 last quarter. Costello Asset Management INC bought a new position in Allete during the 1st quarter worth approximately $35,000. Hexagon Capital Partners LLC grew its position in Allete by 44.5% during the 1st quarter. Hexagon Capital Partners LLC now owns 591 shares of the utilities provider's stock worth $39,000 after acquiring an additional 182 shares during the last quarter. IFP Advisors Inc grew its position in Allete by 3,456.3% during the 2nd quarter. IFP Advisors Inc now owns 569 shares of the utilities provider's stock worth $40,000 after acquiring an additional 553 shares during the last quarter. Finally, Bayforest Capital Ltd bought a new position in Allete during the 2nd quarter worth approximately $45,000. 76.55% of the stock is currently owned by 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.