Nuveen LLC Makes New Investment in Allete, Inc. $ALE

Key Points

• Nuveen LLC acquired 455,291 shares of Allete, Inc., worth approximately $29.9 million, representing about 0.79% of the company's total shares.
• Allete reported a missed earnings expectation for the last quarter with $0.61 EPS, below the consensus estimate of $0.85, alongside revenue of $360.3 million against the expected $425.3 million.
• The company declared a quarterly dividend of $0.73 per share, yielding 4.5%, with a high dividend payout ratio of 92.11%.

Nuveen LLC acquired a new stake in Allete, Inc. (NYSE:ALE - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 455,291 shares of the utilities provider's stock, valued at approximately $29,913,000. Nuveen LLC owned about 0.79% of Allete at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in ALE. Fort Baker Capital Management LP purchased a new stake in Allete during the fourth quarter worth $17,301,000. Alberta Investment Management Corp boosted its holdings in Allete by 784.6% during the first quarter. Alberta Investment Management Corp now owns 282,202 shares of the utilities provider's stock worth $18,541,000 after buying an additional 250,302 shares in the last quarter. AQR Arbitrage LLC boosted its holdings in Allete by 30.4% during the fourth quarter. AQR Arbitrage LLC now owns 847,472 shares of the utilities provider's stock worth $54,781,000 after buying an additional 197,340 shares in the last quarter. Balyasny Asset Management L.P. boosted its holdings in Allete by 627.7% during the fourth quarter. Balyasny Asset Management L.P. now owns 165,730 shares of the utilities provider's stock worth $10,739,000 after buying an additional 142,957 shares in the last quarter. Finally, Kapitalo Investimentos Ltda purchased a new stake in Allete during the fourth quarter worth $8,741,000. 76.55% of the stock is owned by hedge funds and other institutional investors.

Allete Stock Performance

NYSE ALE traded up $0.1960 during mid-day trading on Friday, reaching $64.6960. 51,327 shares of the stock were exchanged, compared to its average volume of 423,319. 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 is $65.17 and its 200-day moving average is $65.26. The company has a market capitalization of $3.75 billion, a P/E ratio of 20.40 and a beta of 0.77. Allete, Inc. has a 1 year low of $63.00 and a 1 year high of $66.46.

Allete (NYSE:ALE - Get Free Report) last posted 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). The company had revenue of $360.30 million for the quarter, compared to analyst estimates of $425.30 million. Allete had a return on equity of 5.71% and a net margin of 11.98%.The business's revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.82 earnings per share.

Allete Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Friday, August 15th will be given a dividend of $0.73 per share. The ex-dividend date is Friday, August 15th. This represents a $2.92 dividend on an annualized basis and a yield of 4.5%. Allete's dividend payout ratio is currently 92.11%.

About Allete

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.