Adage Capital Partners GP L.L.C. Decreases Stock Position in Allete, Inc. $ALE

Key Points

• Adage Capital Partners GP L.L.C. has sold 520,007 shares of Allete, Inc., reducing its holdings by 68% and leaving it with 244,281 shares valued at approximately $16 million.
• Allete reported disappointing quarterly earnings with an EPS of $0.61, missing analyst expectations of $0.85, along with a revenue of $360.30 million compared to an expected $425.30 million.
• The company announced a quarterly dividend of $0.73, representing an annualized dividend yield of 4.6% and a payout ratio of 92.11%.

Adage Capital Partners GP L.L.C. cut its holdings in shares of Allete, Inc. (NYSE:ALE - Free Report) by 68.0% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 244,281 shares of the utilities provider's stock after selling 520,007 shares during the period. Adage Capital Partners GP L.L.C. owned about 0.42% of Allete worth $16,049,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Lazard Asset Management LLC raised its stake in shares of Allete by 13.6% during the fourth quarter. Lazard Asset Management LLC now owns 1,371 shares of the utilities provider's stock worth $88,000 after purchasing an additional 164 shares during the last quarter. Hexagon Capital Partners LLC increased its stake in Allete by 44.5% in the 1st quarter. Hexagon Capital Partners LLC now owns 591 shares of the utilities provider's stock valued at $39,000 after buying an additional 182 shares during the period. State of Alaska Department of Revenue raised its position in Allete by 2.8% during the 1st quarter. State of Alaska Department of Revenue now owns 6,781 shares of the utilities provider's stock worth $445,000 after buying an additional 185 shares during the last quarter. State of Michigan Retirement System lifted its stake in shares of Allete by 1.5% in the 1st quarter. State of Michigan Retirement System now owns 13,846 shares of the utilities provider's stock worth $910,000 after acquiring an additional 200 shares during the period. Finally, Louisiana State Employees Retirement System boosted its holdings in shares of Allete by 1.3% in the first quarter. Louisiana State Employees Retirement System now owns 16,200 shares of the utilities provider's stock valued at $1,064,000 after acquiring an additional 200 shares in the last quarter. Hedge funds and other institutional investors own 76.55% of the company's stock.

Allete Stock Performance

Shares of Allete stock traded down $0.33 on Thursday, reaching $63.45. 656,941 shares of the stock were exchanged, compared to its average volume of 538,047. The firm has a market capitalization of $3.68 billion, a PE ratio of 20.02 and a beta of 0.84. Allete, Inc. has a 1-year low of $63.05 and a 1-year high of $66.46. The business has a fifty day moving average price of $65.09 and a two-hundred day moving average price of $65.09. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 0.57.

Allete (NYSE:ALE - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The utilities provider reported $0.61 earnings per share for the quarter, missing analysts' consensus estimates of $0.85 by ($0.24). Allete had a net margin of 11.98% and a return on equity of 5.71%. The business had revenue of $360.30 million during the quarter, compared to analysts' expectations of $425.30 million. During the same period in the prior year, the firm posted $0.82 EPS. Allete's revenue for the quarter was up 1.6% compared to the same quarter last year.

Allete Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 1st. Investors of record on Friday, August 15th were issued a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date of this dividend was Friday, August 15th. Allete's dividend payout ratio is currently 92.11%.

Allete Company Profile

ALLETE, Inc operates as an energy company. The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, biomass co-fired / natural gas, hydroelectric, wind, and solar. In addition, the company provides regulated utility electric services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric services in northeastern Minnesota to approximately 150,000 retail customers and 14 non-affiliated municipal customers.