Allstate (NYSE:ALL) Rating Lowered to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Allstate from “strong buy” to “buy,” while broader analyst sentiment remains mixed; MarketBeat reports a consensus “hold” rating and a $270.19 target price.
• Allstate reported stronger-than-expected quarterly results, with EPS of $8.99 versus the $6.06 estimate and revenue of $18.60 billion versus $15.46 billion expected.
• Company insiders sold significant amounts of stock, including the COO’s $14.9 million sale and another insider’s $8.9 million sale; institutional investors own 76.47% of Allstate’s shares.

Allstate (NYSE:ALL - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Sunday, Wall Street Zen reports.

Other equities analysts have also issued research reports about the company. Raymond James Financial reiterated a "strong-buy" rating and issued a $315.00 target price (up from $300.00) on shares of Allstate in a research note on Tuesday, August 11th. Barclays lowered their price target on shares of Allstate from $226.00 to $221.00 and set an "underweight" rating on the stock in a report on Wednesday, October 7th. Morgan Stanley cut their price objective on shares of Allstate from $265.00 to $240.00 and set an "equal weight" rating on the stock in a research report on Tuesday, October 6th. The Goldman Sachs Group cut their price objective on shares of Allstate from $280.00 to $250.00 and set a "neutral" rating on the stock in a research report on Thursday, October 1st. Finally, Roth Capital set a $300.00 price objective on shares of Allstate in a research note on Thursday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Allstate presently has a consensus rating of "Hold" and a consensus target price of $270.19.

Allstate Stock Down 2.3%

Shares of NYSE ALL opened at $253.24 on Friday. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 0.24. The stock has a market capitalization of $64.03 billion, a PE ratio of 5.06, a price-to-earnings-growth ratio of 0.56 and a beta of 0.13. The stock's fifty day simple moving average is $245.78 and its two-hundred day simple moving average is $236.63. Allstate has a 12-month low of $188.08 and a 12-month high of $277.22.

Allstate (NYSE:ALL - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The insurance provider reported $8.99 EPS for the quarter, topping the consensus estimate of $6.06 by $2.93. The firm had revenue of $18.60 billion during the quarter, compared to analyst estimates of $15.46 billion. Allstate had a return on equity of 41.64% and a net margin of 18.97%. The business's revenue for the quarter was up 11.8% compared to the same quarter last year. During the same period in the previous year, the company posted $5.94 EPS. As a group, analysts expect that Allstate will post 36.21 EPS for the current fiscal year.

Insider Activity

In other news, COO Mario Rizzo sold 56,225 shares of the company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $264.48, for a total transaction of $14,870,388.00. Following the transaction, the chief operating officer owned 82,227 shares in the company, valued at $21,747,396.96. This represents a 40.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider John Dugenske sold 32,996 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $269.33, for a total transaction of $8,886,812.68. Following the completion of the transaction, the insider directly owned 13,054 shares of the company's stock, valued at $3,515,833.82. The trade was a 71.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.55% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Apollon Wealth Management LLC raised its position in Allstate by 46.4% during the third quarter. Apollon Wealth Management LLC now owns 12,817 shares of the insurance provider's stock worth $2,844,000 after acquiring an additional 4,065 shares during the period. Live Oak Investment Partners grew its position in shares of Allstate by 0.6% in the third quarter. Live Oak Investment Partners now owns 11,767 shares of the insurance provider's stock valued at $2,611,000 after purchasing an additional 66 shares during the period. Paladin Wealth LLC grew its position in shares of Allstate by 64.5% in the third quarter. Paladin Wealth LLC now owns 1,425 shares of the insurance provider's stock valued at $316,000 after purchasing an additional 559 shares during the period. Orange Investment Advisors Inc. grew its position in shares of Allstate by 39.8% in the third quarter. Orange Investment Advisors Inc. now owns 17,532 shares of the insurance provider's stock valued at $3,890,000 after purchasing an additional 4,991 shares during the period. Finally, EULAV Asset Management increased its stake in shares of Allstate by 74.2% during the third quarter. EULAV Asset Management now owns 35,015 shares of the insurance provider's stock worth $7,768,000 after purchasing an additional 14,915 shares in the last quarter. Hedge funds and other institutional investors own 76.47% of the company's stock.

Key Allstate News

Here are the key news stories impacting Allstate this week:

• Positive Sentiment: Allstate prevailed in a Texas coverage dispute involving a vacant property. The ruling supports the insurer’s ability to enforce policy vacancy provisions, potentially limiting claims costs and reinforcing underwriting discipline. Vacant clause can void cover: US court backs Allstate in Texas case
• Positive Sentiment: Allstate retained $9,000 in a subrogation-related dispute after a court placed the premature filing cost on the opposing liability carrier. The financial impact is small, but the decision may support Allstate’s claims-handling position. Allstate keeps $9,000 as premature subrogation cost falls on liability carrier
• Positive Sentiment: Bank of America raised its price target on Allstate to $340 from $336, signaling continued confidence in the insurer’s earnings outlook and valuation. BofA raises target from $336 to $340
• Positive Sentiment: A valuation-focused analysis said Allstate still appears inexpensive despite a 131% advance, potentially attracting investors who expect further benefits from strong insurance pricing and improved profitability. Allstate stock still looks cheap after its 131% run
• Neutral Sentiment: Allstate shares gained 3.76% in the referenced session, although KBW maintained its Sell rating, highlighting a disconnect between short-term trading momentum and analyst conviction. KBW keeps Sell rating
• Neutral Sentiment: UBS reiterated its Hold rating, offering no new catalyst but indicating the firm sees limited justification for changing its current view. UBS keeps Hold rating
• Negative Sentiment: Analysts expect Allstate’s third-quarter earnings per share to decline by double digits year over year, creating concern ahead of the company’s November earnings release. What to expect from Allstate’s next quarterly earnings report
• Negative Sentiment: KBW’s continued Sell rating remains a notable overhang, suggesting the firm believes Allstate’s strong rally has outpaced its fundamental value. KBW keeps Sell rating
• Negative Sentiment: The price target for Allstate’s preferred stock was reduced 12.29% to $19.21, signaling weaker expectations for that security, although it does not directly change the valuation of the common shares. Allstate preferred stock price target decreased

Allstate Company Profile

Allstate Corp. NYSE: ALL is an insurance company that provides protection products and related services primarily in the United States. Its offerings include automobile, homeowners, renters, condominium, motorcycle and other personal property and casualty insurance, distributed through agents, brokers, direct channels and digital platforms.

The company also provides roadside assistance, identity-protection services and protection plans for consumer products. Through its acquisition of National General, Allstate expanded its presence in independent-agent distribution and specialty personal insurance.

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