Allstate (NYSE:ALL) Stock Price Up 5% - Here's Why

Key Points

• Allstate shares rose about 5% in midday trading, reaching as high as $221.05, though volume was below average.
• Recent analyst action was mixed, but the stock still carries a “Moderate Buy” consensus with a $241.67 average target price; JPMorgan and Piper Sandler remained bullish while some others downgraded the stock.
• Allstate posted strong quarterly results, with earnings of $10.65 per share versus $7.31 expected and revenue of $16.94 billion, and it also announced a $1.08 quarterly dividend payable July 1.

The Allstate Corporation (NYSE:ALL - Get Free Report) shares were up 5% during mid-day trading on Friday . The company traded as high as $221.05 and last traded at $221.4350. Approximately 806,501 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 1,632,866 shares. The stock had previously closed at $210.84.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on ALL shares. The Goldman Sachs Group reissued a "neutral" rating and set a $231.00 price target on shares of Allstate in a research report on Thursday, March 5th. JPMorgan Chase & Co. raised their target price on shares of Allstate from $260.00 to $263.00 and gave the company an "overweight" rating in a research note on Thursday, February 5th. Zacks Research lowered shares of Allstate from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 7th. Piper Sandler reissued an "overweight" rating on shares of Allstate in a research report on Thursday, May 28th. Finally, Wall Street Zen lowered Allstate from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Three analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $241.67.

Allstate Stock Up 4.8%

The company has a market cap of $56.88 billion, a P/E ratio of 4.87, a price-to-earnings-growth ratio of 0.37 and a beta of 0.18. The company has a quick ratio of 0.36, a current ratio of 0.36 and a debt-to-equity ratio of 0.25. The company has a fifty day moving average of $212.98 and a 200 day moving average of $208.57.

Allstate (NYSE:ALL - Get Free Report) last posted its earnings results on Wednesday, April 29th. The insurance provider reported $10.65 earnings per share for the quarter, beating analysts' consensus estimates of $7.31 by $3.34. The company had revenue of $16.94 billion for the quarter, compared to the consensus estimate of $15.24 billion. Allstate had a return on equity of 42.66% and a net margin of 17.81%.Allstate's revenue was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.53 earnings per share. On average, research analysts anticipate that The Allstate Corporation will post 29.43 earnings per share for the current fiscal year.

Allstate Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be paid a $1.08 dividend. This represents a $4.32 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Monday, June 1st. Allstate's dividend payout ratio is 9.53%.

Insider Activity at Allstate

In other Allstate news, insider Mark Q. Prindiville sold 1,550 shares of the stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $216.27, for a total value of $335,218.50. Following the transaction, the insider directly owned 27,558 shares in the company, valued at approximately $5,959,968.66. This trade represents a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Mario Rizzo sold 18,578 shares of Allstate stock in a transaction on Friday, May 1st. The stock was sold at an average price of $218.80, for a total transaction of $4,064,866.40. Following the transaction, the chief operating officer owned 82,227 shares in the company, valued at $17,991,267.60. This represents a 18.43% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 22,353 shares of company stock worth $4,851,560. 1.55% of the stock is owned by company insiders.

Institutional Investors Weigh In On Allstate

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Caprock Group LLC bought a new position in Allstate in the 3rd quarter worth $3,598,000. CIBC Bancorp USA Inc. bought a new stake in Allstate during the third quarter valued at about $7,814,000. Elo Mutual Pension Insurance Co lifted its position in shares of Allstate by 39.6% in the third quarter. Elo Mutual Pension Insurance Co now owns 40,298 shares of the insurance provider's stock valued at $8,650,000 after acquiring an additional 11,431 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Allstate by 5.1% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 552,120 shares of the insurance provider's stock valued at $112,533,000 after acquiring an additional 26,586 shares in the last quarter. Finally, Mezzasalma Advisors LLC boosted its stake in shares of Allstate by 58.6% in the fourth quarter. Mezzasalma Advisors LLC now owns 23,918 shares of the insurance provider's stock worth $4,875,000 after acquiring an additional 8,837 shares during the period. 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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