Allstate (NYSE:ALL) Shares Gap Down - Time to Sell?

Key Points

• Allstate shares fell sharply, gapping down from a prior close of $250.35 to an opening price of $241.13 and last trading around $237.47, down about 4% on the day.
• Despite the drop, Wall Street sentiment remains mostly constructive: the stock has a “Moderate Buy” consensus, with several firms recently raising price targets, and a consensus target of $249.58.
• Allstate’s latest earnings were well above expectations, with $10.65 EPS versus $7.31 expected and revenue of $16.94 billion versus $15.24 billion estimated, while the company also announced a quarterly dividend of $1.08 per share.

The Allstate Corporation (NYSE:ALL - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $250.35, but opened at $241.13. Allstate shares last traded at $237.4690, with a volume of 345,709 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on ALL. Evercore set a $240.00 price target on Allstate in a research note on Friday. Weiss Ratings reissued a "buy (a-)" rating on shares of Allstate in a report on Thursday, June 18th. Mizuho raised their target price on shares of Allstate from $255.00 to $272.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. Piper Sandler reaffirmed an "overweight" rating on shares of Allstate in a report on Thursday, May 28th. Finally, JPMorgan Chase & Co. increased their price target on shares of Allstate from $263.00 to $282.00 and gave the stock an "overweight" rating in a research note on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $249.58.

Allstate Trading Down 4.0%

The firm has a market capitalization of $61.88 billion, a price-to-earnings ratio of 5.30, a price-to-earnings-growth ratio of 0.45 and a beta of 0.16. The business's 50 day moving average price is $225.57 and its 200-day moving average price is $213.66. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.36 and a quick ratio of 0.36.

Allstate (NYSE:ALL - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $10.65 EPS for the quarter, beating analysts' consensus estimates of $7.31 by $3.34. Allstate had a net margin of 17.81% and a return on equity of 42.66%. The firm had revenue of $16.94 billion during the quarter, compared to the consensus estimate of $15.24 billion. During the same quarter last year, the firm earned $3.53 earnings per share. The firm's revenue was up 3.0% compared to the same quarter last year. Equities analysts forecast that The Allstate Corporation will post 29.99 EPS for the current fiscal year.

Allstate Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Monday, August 31st will be issued a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Monday, August 31st. Allstate's dividend payout ratio (DPR) is currently 9.53%.

Insider Activity at Allstate

In other Allstate news, Director Andrea Redmond sold 2,225 shares of the business's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $202.91, for a total transaction of $451,474.75. Following the sale, the director directly owned 2,225 shares in the company, valued at approximately $451,474.75. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark Q. Prindiville sold 1,550 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $216.27, for a total transaction of $335,218.50. Following the completion of the transaction, the insider owned 27,558 shares of the company's stock, valued at $5,959,968.66. This represents a 5.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 22,353 shares of company stock worth $4,851,560 over the last three months. 1.55% of the stock is currently owned by corporate insiders.

Institutional Trading of Allstate

Hedge funds and other institutional investors have recently made changes to their positions in the stock. MV Capital Management Inc. purchased a new position in Allstate in the fourth quarter valued at about $25,000. Dorato Capital Management acquired a new stake in shares of Allstate in the 4th quarter worth approximately $27,000. Navalign LLC purchased a new position in Allstate in the 4th quarter valued at approximately $27,000. Evolution Wealth Management Inc. increased its stake in Allstate by 7,000.0% in the 1st quarter. Evolution Wealth Management Inc. now owns 142 shares of the insurance provider's stock valued at $29,000 after purchasing an additional 140 shares in the last quarter. Finally, Allied Private Wealth LLC acquired a new position in Allstate during the second quarter worth $29,000. Institutional investors and hedge funds own 76.47% of the company's stock.

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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