Allete (NYSE:ALE) Sets New 12-Month Low - Here's Why

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.

Shares of Allete, Inc. (NYSE:ALE - Get Free Report) hit a new 52-week low during mid-day trading 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 stock's 50-day moving average is $65.18 and its 200-day moving average is $65.14. The firm has a market cap of $3.69 billion, a P/E ratio of 20.07 and a beta of 0.84. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 0.57.

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

Allete Announces Dividend

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

Institutional Investors Weigh In On Allete

Several institutional investors and hedge funds have recently made changes to their positions in the company. Osaic Holdings Inc. boosted its stake in shares of Allete by 19.5% in the 2nd quarter. Osaic Holdings Inc. now owns 24,115 shares of the utilities provider's stock valued at $1,545,000 after purchasing an additional 3,938 shares in the last quarter. Caxton Associates LLP bought a new stake in Allete during the 2nd quarter worth about $43,127,000. FORA Capital LLC bought a new stake in Allete during the 2nd quarter worth about $333,000. Headlands Technologies LLC increased its stake in shares of Allete by 10,173.1% in the 2nd quarter. Headlands Technologies LLC now owns 5,342 shares of the utilities provider's stock valued at $342,000 after acquiring an additional 5,290 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in shares of Allete by 240.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,777 shares of the utilities provider's stock valued at $498,000 after acquiring an additional 5,492 shares during the last quarter. Institutional investors and hedge funds 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.