Allstate (NYSE:ALL) Hits New 12-Month High - Should You Buy?

Key Points

• Hit a new 52‑week high: Allstate traded as high as $221.16 on Friday and carries a consensus analyst rating of Moderate Buy with a consensus target price of $240.28.
• Earnings beat: The company reported $10.65 EPS vs. $7.31 expected and revenue of $16.94B vs. $15.24B, showing strong profitability (ROE 44.44%, net margin 17.81%).
• Dividend increase and valuation: Allstate raised its quarterly dividend to $1.08 ($4.32 annualized, ~2.0% yield) with a low payout ratio (~11%), while trading at a P/E of ~4.8 and a market cap of about $56.4B.

The Allstate Corporation (NYSE:ALL - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $221.16 and last traded at $220.3320, with a volume of 124741 shares traded. The stock had previously closed at $217.26.

Analyst Ratings Changes

A number of research firms recently commented on ALL. Zacks Research downgraded Allstate from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 7th. Mizuho decreased their price target on Allstate from $281.00 to $265.00 and set an "outperform" rating for the company in a research note on Friday, March 20th. Raymond James Financial reiterated a "strong-buy" rating and issued a $260.00 price target on shares of Allstate in a research note on Tuesday, March 3rd. Wells Fargo & Company lifted their price target on Allstate from $227.00 to $229.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 9th. Finally, JPMorgan Chase & Co. lifted their price target on Allstate from $260.00 to $263.00 and gave the stock an "overweight" rating in a research note on Thursday, February 5th. Three research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Allstate presently has an average rating of "Moderate Buy" and a consensus target price of $240.28.

Allstate Stock Performance

The stock has a fifty day moving average price of $210.35 and a two-hundred day moving average price of $205.87. The company has a market cap of $56.39 billion, a P/E ratio of 4.81, a PEG ratio of 0.43 and a beta of 0.22. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.37 and a quick ratio of 0.37.

Allstate (NYSE:ALL - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $10.65 EPS for the quarter, topping the consensus estimate of $7.31 by $3.34. Allstate had a return on equity of 44.44% and a net margin of 17.81%.The firm had revenue of $16.94 billion for the quarter, compared to analysts' expectations of $15.24 billion. During the same quarter in the previous year, the company earned $3.53 earnings per share. The firm's quarterly revenue was up 3.0% compared to the same quarter last year. On average, equities analysts forecast that The Allstate Corporation will post 25.82 earnings per share for the current fiscal year.

Allstate Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Monday, March 2nd were issued a $1.08 dividend. This is an increase from Allstate's previous quarterly dividend of $1.00. This represents a $4.32 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, March 2nd. Allstate's dividend payout ratio is currently 11.31%.

Hedge Funds Weigh In On Allstate

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALL. MV Capital Management Inc. purchased a new position in shares of Allstate during the 4th quarter valued at $25,000. Navalign LLC purchased a new position in shares of Allstate during the 4th quarter valued at $27,000. Barnes Dennig Private Wealth Management LLC grew its holdings in shares of Allstate by 112.3% during the 3rd quarter. Barnes Dennig Private Wealth Management LLC now owns 138 shares of the insurance provider's stock valued at $30,000 after acquiring an additional 73 shares in the last quarter. Dorato Capital Management purchased a new position in shares of Allstate during the 4th quarter valued at $27,000. Finally, Evolution Wealth Management Inc. grew its holdings in shares of Allstate by 7,000.0% during the 1st quarter. Evolution Wealth Management Inc. now owns 142 shares of the insurance provider's stock valued at $29,000 after acquiring an additional 140 shares in the last quarter. 76.47% of the stock is currently owned by hedge funds and other institutional investors.

Allstate Company Profile

Allstate Corporation is a publicly traded insurance company headquartered in Northbrook, Illinois, and is one of the largest personal lines property and casualty insurers in the United States. Founded in 1931 as a subsidiary of Sears, Roebuck and Co, Allstate has grown into a diversified insurer that serves millions of consumers and businesses through a mix of distribution channels and product offerings.

The company underwrites a broad range of insurance products, with primary emphasis on auto and homeowners coverage.

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