Allstate (NYSE:ALL) Stock Rating Cut to Hold at HSBC

Key Points

• HSBC downgraded Allstate from Buy to Hold and set a $271 price target, implying just 1.3% upside from the prior close.
• Analyst opinion is mixed but averages to Hold: MarketBeat reports a $270.76 average target, with 2 Strong Buy, 7 Buy, 10 Hold and 3 Sell ratings.
• Allstate beat quarterly earnings expectations, reporting $9.76 per share versus the $6.89 consensus and revenue of $17.35 billion. However, catastrophe losses and rising auto loss costs pose risks to profitability.

Allstate (NYSE:ALL - Get Free Report) was downgraded by stock analysts at HSBC from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Friday, MarketBeat reports. They currently have a $271.00 price target on the insurance provider's stock. HSBC's price target points to a potential upside of 1.30% from the stock's previous close.

Several other equities research analysts have also recently issued reports on the company. Evercore raised their price objective on Allstate from $240.00 to $262.00 in a report on Thursday, October 8th. Jefferies Financial Group dropped their target price on Allstate from $310.00 to $292.00 and set a "buy" rating for the company in a research note on Tuesday, October 6th. Weiss Ratings upgraded Allstate from a "buy (a)" rating to a "buy (a+)" rating in a research report on Thursday, October 29th. JPMorgan Chase & Co. raised their price target on Allstate from $282.00 to $292.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 11th. Finally, Zacks Research cut Allstate from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 15th. Two analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $270.76.

Allstate Stock Performance

Shares of ALL opened at $267.51 on Friday. Allstate has a 1 year low of $191.13 and a 1 year high of $281.11. The company's 50 day simple moving average is $245.96 and its 200 day simple moving average is $229.53. The company has a market capitalization of $67.64 billion, a price-to-earnings ratio of 6.06, a PEG ratio of 0.59 and a beta of 0.13. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.36 and a current ratio of 0.36.

Allstate (NYSE:ALL - Get Free Report) last released its earnings results on Wednesday, November 4th. The insurance provider reported $9.76 EPS for the quarter, topping the consensus estimate of $6.89 by $2.87. The firm had revenue of $17.35 billion during the quarter, compared to analysts' expectations of $15.87 billion. Allstate had a net margin of 16.57% and a return on equity of 38.48%. Allstate's revenue for the quarter was up .5% on a year-over-year basis. During the same period in the previous year, the company earned $11.17 EPS. On average, sell-side analysts predict that Allstate will post 36.21 EPS for the current year.

Insider Buying and Selling at Allstate

In other news, COO Mario Rizzo sold 56,225 shares of the business's stock in a transaction on 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 completion of the sale, the chief operating officer directly owned 82,227 shares of the company's stock, valued at $21,747,396.96. The trade was a 40.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.55% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Eurizon Capital SGR S.p.A. raised its holdings in Allstate by 155.3% during the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 127,893 shares of the insurance provider's stock worth $28,386,000 after purchasing an additional 77,789 shares during the last quarter. Werba Rubin Papier Wealth Management boosted its stake in shares of Allstate by 3.5% in the 3rd quarter. Werba Rubin Papier Wealth Management now owns 2,746 shares of the insurance provider's stock valued at $609,000 after purchasing an additional 94 shares during the last quarter. R Squared Ltd bought a new position in shares of Allstate in the 3rd quarter valued at about $436,000. Banyan Capital Management Inc. bought a new position in shares of Allstate in the 3rd quarter valued at about $400,000. Finally, Maryland State Retirement & Pension System grew its position in shares of Allstate by 13.4% during the 3rd quarter. Maryland State Retirement & Pension System now owns 15,600 shares of the insurance provider's stock worth $3,461,000 after buying an additional 1,848 shares during the period. Institutional investors and hedge funds own 76.47% of the company's stock.

Allstate News Roundup

Here are the key news stories impacting Allstate this week:

• Positive Sentiment: Allstate reported Q3 earnings of $9.76 per share, above analysts’ estimates, and adjusted net income of $2.5 billion. Growth in Protection Services and higher investment income helped offset catastrophe losses. ALL Q3 Earnings Beat on Protection Services Unit Strength
• Positive Sentiment: Auto policies grew 3.4%, and management highlighted progress on AI, including plans for a personal agentic assistant launch in early 2027. Allstate Earnings Call Highlights Strong Growth and AI Progress
• Negative Sentiment: Despite the quarterly beat, net income fell about 45% year over year as catastrophe losses rose. Allstate also faces a margin risk as underlying auto loss costs increase while average premiums decline. Allstate Q3 Net Income Drops About 45% on Higher Catastrophe Losses
• Negative Sentiment: Barclays raised its price target to $228 but kept an “underweight” rating, indicating a cautious view. Unusually high put-option activity may also reflect hedging or bearish positioning, though it does not confirm a change in the outlook. Barclays stock recommendations

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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