Keefe, Bruyette & Woods Issues Pessimistic Forecast for Allstate (NYSE:ALL) Stock Price

Key Points

• Keefe, Bruyette & Woods cut Allstate’s price target to $232 from $250 and maintained an “underperform” rating, implying only about 1.1% upside from the stock’s current price.
• Analyst sentiment is mixed, with Allstate carrying a consensus “hold” rating and an average price target of $260.58; targets from other firms range as high as $292.
• Allstate reported strong quarterly results, earning $8.99 per share versus the $6.06 consensus estimate and generating $18.60 billion in revenue, up 11.8% year over year. However, two executives recently sold substantial portions of their holdings.

Allstate (NYSE:ALL - Get Free Report) had its target price lowered by analysts at Keefe, Bruyette & Woods from $250.00 to $232.00 in a research note issued to investors on Monday, Benzinga reports. The firm presently has an "underperform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective indicates a potential upside of 1.10% from the stock's current price.

A number of other equities research analysts have also weighed in on the company. Cantor Fitzgerald lifted their target price on Allstate from $236.00 to $242.00 and gave the company a "neutral" rating in a research report on Thursday, July 9th. Piper Sandler reiterated an "overweight" rating on shares of Allstate in a report on Monday, September 28th. JPMorgan Chase & Co. increased their price target on Allstate from $282.00 to $292.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 11th. Evercore set a $240.00 price target on Allstate in a research note on Friday, July 10th. Finally, UBS Group lifted their price objective on Allstate from $261.00 to $275.00 and gave the company a "neutral" rating in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Allstate has a consensus rating of "Hold" and a consensus target price of $260.58.

Allstate Stock Performance

Allstate stock opened at $229.48 on Monday. The company has a 50 day moving average price of $249.57 and a 200-day moving average price of $234.09. 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 has a fifty-two week low of $188.08 and a fifty-two week high of $277.22. The company has a market capitalization of $58.03 billion, a PE ratio of 4.58, a P/E/G ratio of 0.51 and a beta of 0.13.

Allstate (NYSE:ALL - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The insurance provider reported $8.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.06 by $2.93. Allstate had a return on equity of 41.64% and a net margin of 18.97%. The firm had revenue of $18.60 billion during the quarter, compared to analyst estimates of $15.46 billion. During the same quarter in the previous year, the business earned $5.94 earnings per share. Allstate's quarterly revenue was up 11.8% on a year-over-year basis. As a group, equities analysts forecast that Allstate will post 35.83 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Trading of Allstate

A number of institutional investors have recently modified their holdings of ALL. Cornerstone Financial Management LLC raised its stake in shares of Allstate by 24.9% in the second quarter. Cornerstone Financial Management LLC now owns 226 shares of the insurance provider's stock worth $54,000 after purchasing an additional 45 shares during the last quarter. Capital Advisors Inc. OK lifted its holdings in shares of Allstate by 2.6% during the second quarter. Capital Advisors Inc. OK now owns 1,827 shares of the insurance provider's stock worth $435,000 after purchasing an additional 46 shares during the period. Natural Investments LLC lifted its holdings in shares of Allstate by 1.5% during the second quarter. Natural Investments LLC now owns 3,327 shares of the insurance provider's stock worth $791,000 after purchasing an additional 50 shares during the period. Kaizen Financial Strategies boosted its position in Allstate by 5.5% in the third quarter. Kaizen Financial Strategies now owns 967 shares of the insurance provider's stock valued at $215,000 after buying an additional 50 shares during the last quarter. Finally, Root Financial Partners LLC boosted its position in Allstate by 4.7% in the first quarter. Root Financial Partners LLC now owns 1,170 shares of the insurance provider's stock valued at $243,000 after buying an additional 53 shares during the last quarter. 76.47% of the stock is currently owned by institutional investors.

About Allstate

Allstate Corporation is an insurance company that provides protection products and services primarily to individuals and families. Its offerings include automobile, homeowners, renters, condominium, and other property and casualty insurance, along with roadside assistance, identity protection, and related protection services.

The company distributes products through a network of exclusive agents, independent agents, contact centers, and digital channels. Allstate also serves customers through brands and businesses including National General, which expands its presence in personal and commercial auto insurance and other specialty coverage markets.

Founded in 1931 as part of Sears, Roebuck & Co, Allstate became an independent publicly traded company in 1995.

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