Allstate (NYSE:ALL) Reaches New 1-Year High - Should You Buy?

Key Points

• Allstate reached a new 52-week high of about $218.50 on Wednesday (stock was up ~2%), and analysts' consensus rating is a Moderate Buy with a consensus target price of $238.65.
• The company reported a strong quarterly beat with EPS of $14.31 versus $8.72 expected and revenue of $17.35 billion, and analysts project ~18.74 EPS for the current year.
• Allstate raised its quarterly dividend to $1.08 (annualized $4.32, ~2.0% yield) and trades at a low valuation (PE ~5.74, PEG 0.43) while institutional investors own roughly 76.5% of shares.

The Allstate Corporation (NYSE:ALL - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $217.65 and last traded at $218.5040, with a volume of 331820 shares. The stock had previously closed at $214.88.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Zacks Research cut Allstate from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 7th. Weiss Ratings upgraded Allstate from a "buy (b+)" rating to a "buy (a-)" rating in a report on Monday, March 23rd. Keefe, Bruyette & Woods increased their price target on Allstate from $254.00 to $260.00 and gave the stock an "outperform" rating in a report on Tuesday, February 10th. TD Cowen cut Allstate from a "buy" rating to a "hold" rating in a report on Monday, January 12th. Finally, Morgan Stanley reiterated an "equal weight" rating and set a $215.00 price target (down from $245.00) on shares of Allstate in a report on Tuesday, December 16th. Three research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Allstate has an average rating of "Moderate Buy" and a consensus target price of $238.65.

Allstate Stock Up 2.0%

The business has a fifty day moving average of $208.29 and a 200 day moving average of $205.40. The company has a market capitalization of $56.62 billion, a PE ratio of 5.74, a PEG ratio of 0.43 and a beta of 0.22. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.26.

Allstate (NYSE:ALL - Get Free Report) last announced its earnings results on Wednesday, February 4th. The insurance provider reported $14.31 EPS for the quarter, beating analysts' consensus estimates of $8.72 by $5.59. Allstate had a return on equity of 39.20% and a net margin of 15.19%.The company had revenue of $17.35 billion during the quarter, compared to analysts' expectations of $17.23 billion. During the same period last year, the business posted $7.67 EPS. Allstate's revenue for the quarter was up 5.1% on a year-over-year basis. Equities research analysts anticipate that The Allstate Corporation will post 18.74 EPS for the current year.

Allstate Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Monday, March 2nd were paid a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Monday, March 2nd. This is a boost from Allstate's previous quarterly dividend of $1.00. Allstate's dividend payout ratio (DPR) is 11.31%.

Institutional Trading of Allstate

Hedge funds have recently added to or reduced their stakes in the company. State Street Corp lifted its stake in Allstate by 3.7% in the fourth quarter. State Street Corp now owns 12,297,551 shares of the insurance provider's stock worth $2,571,600,000 after acquiring an additional 438,034 shares during the last quarter. GQG Partners LLC lifted its stake in Allstate by 36.0% in the fourth quarter. GQG Partners LLC now owns 5,488,560 shares of the insurance provider's stock worth $1,142,449,000 after acquiring an additional 1,452,993 shares during the last quarter. Franklin Resources Inc. lifted its stake in Allstate by 29.2% in the fourth quarter. Franklin Resources Inc. now owns 5,007,549 shares of the insurance provider's stock worth $1,042,321,000 after acquiring an additional 1,131,172 shares during the last quarter. Boston Partners lifted its stake in Allstate by 14.9% in the third quarter. Boston Partners now owns 3,050,780 shares of the insurance provider's stock worth $654,652,000 after acquiring an additional 395,195 shares during the last quarter. Finally, Raymond James Financial Inc. lifted its stake in Allstate by 3.3% in the second quarter. Raymond James Financial Inc. now owns 2,793,645 shares of the insurance provider's stock worth $562,388,000 after acquiring an additional 88,620 shares during the last quarter. Institutional investors and hedge funds own 76.47% of the company's stock.

About Allstate

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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