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

Key Points

• Allete's shares reached a new 52-week low at $62.99 during trading, indicating a decline with a closing price of $63.02 and a drop of 0.9%.
• The company reported a missed earnings estimate with an EPS of $0.61, falling short of the expected $0.85, alongside revenue of $360.30 million compared to the forecast of $425.30 million.
• Allete declared a quarterly dividend of $0.73, yielding 4.7%, while maintaining a high payout ratio of 92.11%.

Allete, Inc. (NYSE:ALE - Get Free Report) shares reached a new 52-week low on Monday . The company traded as low as $62.99 and last traded at $63.02, with a volume of 12856 shares. The stock had previously closed at $63.26.

Allete Price Performance

The company has a market capitalization of $3.71 billion, a PE ratio of 20.19 and a beta of 0.84. The stock has a 50 day moving average price of $64.93 and a two-hundred day moving average price of $65.02. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.81 and a current ratio of 1.34.

Allete (NYSE:ALE - Get Free Report) last released its quarterly 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 business had revenue of $360.30 million for the quarter, compared to the consensus estimate of $425.30 million. During the same quarter in the prior year, the business posted $0.82 EPS. The firm's revenue for the quarter was up 1.6% compared to the same quarter last year.

Allete Dividend Announcement

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

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ALE. UMB Bank n.a. increased its position in 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 period. Costello Asset Management INC bought a new position in shares of Allete during the 1st quarter worth about $35,000. IFP Advisors Inc increased its holdings in shares of 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 purchasing an additional 553 shares during the period. Hexagon Capital Partners LLC increased its holdings in shares of 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 purchasing an additional 182 shares during the period. Finally, Bayforest Capital Ltd bought a new position in shares of Allete during the 2nd quarter worth about $45,000. 76.55% of the stock is 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.