Allete (NYSE:ALE) Sets New 52-Week 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)'s share price reached a new 52-week low during trading on Monday . The company traded as low as $62.99 and last traded at $63.02, with a volume of 12856 shares traded. The stock had previously closed at $63.26.

Allete Stock Down 0.9%

The stock has a market cap of $3.64 billion, a price-to-earnings ratio of 19.77 and a beta of 0.84. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.57. The firm's 50 day moving average is $65.05 and its two-hundred day moving average is $65.07.

Allete (NYSE:ALE - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The utilities provider reported $0.61 EPS for the quarter, missing analysts' consensus estimates of $0.85 by ($0.24). The firm had revenue of $360.30 million for 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% compared to the same quarter last year. During the same quarter last year, the firm earned $0.82 earnings per share.

Allete Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, September 1st. Shareholders of record on Friday, August 15th were issued a $0.73 dividend. The ex-dividend date was Friday, August 15th. This represents a $2.92 annualized dividend and a yield of 4.7%. Allete's payout ratio is 92.11%.

Institutional Investors Weigh In On Allete

Hedge funds and other institutional investors have recently made changes to their positions in the business. Lazard Asset Management LLC lifted its position in Allete by 13.6% during the fourth quarter. Lazard Asset Management LLC now owns 1,371 shares of the utilities provider's stock worth $88,000 after buying an additional 164 shares during the period. Hexagon Capital Partners LLC increased its stake 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 valued at $39,000 after acquiring an additional 182 shares during the last quarter. State of Alaska Department of Revenue lifted its holdings in shares of Allete by 2.8% during the 1st quarter. State of Alaska Department of Revenue now owns 6,781 shares of the utilities provider's stock worth $445,000 after acquiring an additional 185 shares during the period. American Century Companies Inc. lifted its holdings in shares of Allete by 1.2% during the 2nd quarter. American Century Companies Inc. now owns 16,642 shares of the utilities provider's stock worth $1,066,000 after acquiring an additional 194 shares during the period. Finally, State of Michigan Retirement System boosted its position in shares of Allete by 1.5% in the first quarter. State of Michigan Retirement System now owns 13,846 shares of the utilities provider's stock worth $910,000 after acquiring an additional 200 shares during the last quarter. 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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