Credit Industriel ET Commercial Purchases New Position in Allete, Inc. $ALE

Key Points

• Credit Industriel ET Commercial acquired a new stake in Allete, Inc. worth approximately $10.2 million, making it the 17th largest position in their portfolio.
• Allete reported earnings of $0.61 per share for the last quarter, missing estimates by $0.24, and had a revenue of $360.3 million, lower than analysts’ expectations.
• The company declared a quarterly dividend of $0.73 per share, resulting in an annualized yield of 4.3% and a payout ratio of 92.11%.

Credit Industriel ET Commercial purchased a new stake in shares of Allete, Inc. (NYSE:ALE - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 158,925 shares of the utilities provider's stock, valued at approximately $10,182,000. Allete comprises approximately 0.9% of Credit Industriel ET Commercial's holdings, making the stock its 17th largest position. Credit Industriel ET Commercial owned approximately 0.27% of Allete as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Nuveen LLC purchased a new stake in Allete during the first quarter valued at approximately $29,913,000. AQR Arbitrage LLC raised its position in Allete by 39.7% during the first quarter. AQR Arbitrage LLC now owns 1,183,682 shares of the utilities provider's stock valued at $77,768,000 after purchasing an additional 336,210 shares during the period. Alberta Investment Management Corp raised its position in Allete by 784.6% during the first quarter. Alberta Investment Management Corp now owns 282,202 shares of the utilities provider's stock valued at $18,541,000 after purchasing an additional 250,302 shares during the period. Absolute Gestao de Investimentos Ltda. raised its position in Allete by 52.9% during the first quarter. Absolute Gestao de Investimentos Ltda. now owns 388,753 shares of the utilities provider's stock valued at $25,541,000 after purchasing an additional 134,578 shares during the period. Finally, AQR Capital Management LLC raised its position in Allete by 28.8% during the first quarter. AQR Capital Management LLC now owns 524,047 shares of the utilities provider's stock valued at $34,430,000 after purchasing an additional 117,133 shares during the period. 76.55% of the stock is owned by institutional investors.

Allete Trading Up 0.0%

Shares of NYSE ALE opened at $67.31 on Tuesday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.81 and a current ratio of 1.34. The business's 50 day moving average price is $65.01 and its 200-day moving average price is $65.09. Allete, Inc. has a fifty-two week low of $62.38 and a fifty-two week high of $67.44. The company has a market cap of $3.91 billion, a price-to-earnings ratio of 21.23 and a beta of 0.83.

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

Allete Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, September 1st. Stockholders of record on Friday, August 15th were issued a $0.73 dividend. This represents a $2.92 annualized dividend and a dividend yield of 4.3%. The ex-dividend date was Friday, August 15th. Allete's dividend payout ratio is presently 92.11%.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "hold (c+)" rating on shares of Allete in a research report on Wednesday, October 8th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of "Hold".

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.

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