The Allstate Corporation (NYSE:ALL) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Allstate has a consensus analyst rating of “Moderate Buy” from 21 covering analysts, with an average 12-month price target of about $240.33. The breakdown includes one sell, ten holds, seven buys, and three strong buys.
• The company reported a strong quarterly earnings beat, posting $10.65 EPS versus expectations of $7.31 and revenue of $16.94 billion, above estimates. Allstate also raised expectations for the full year, with analysts now forecasting 29.43 EPS.
• Allstate continues to return cash to shareholders through a quarterly dividend of $1.08 per share, or $4.32 annually, for a yield of 1.9%. The payout ratio remains low at 9.53%, indicating dividend coverage is still strong.

The Allstate Corporation (NYSE:ALL - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twenty-one analysts that are presently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, ten have given a hold recommendation, seven have given a buy recommendation and three have given a strong buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $240.3333.

ALL has been the subject of a number of analyst reports. Keefe, Bruyette & Woods downgraded shares of Allstate from an "outperform" rating to a "market perform" rating and decreased their target price for the company from $266.00 to $242.00 in a research note on Monday, June 8th. The Goldman Sachs Group reiterated a "neutral" rating and set a $231.00 price target on shares of Allstate in a report on Thursday, March 5th. Wall Street Zen cut shares of Allstate from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Citigroup increased their price target on shares of Allstate from $221.00 to $226.00 and gave the company a "neutral" rating in a report on Friday, May 1st. Finally, Wells Fargo & Company increased their price target on shares of Allstate from $229.00 to $243.00 and gave the company an "equal weight" rating in a report on Wednesday, May 6th.

Allstate Price Performance

Shares of NYSE ALL opened at $221.94 on Thursday. Allstate has a fifty-two week low of $188.08 and a fifty-two week high of $227.62. The company has a 50 day simple moving average of $215.57 and a two-hundred day simple moving average of $209.10. The company has a market capitalization of $57.13 billion, a price-to-earnings ratio of 4.90, a P/E/G ratio of 0.40 and a beta of 0.18. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.36 and a current ratio of 0.36.

Allstate (NYSE:ALL - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $10.65 earnings per share for the quarter, beating analysts' consensus estimates of $7.31 by $3.34. Allstate had a net margin of 17.81% and a return on equity of 42.66%. The business had revenue of $16.94 billion during the quarter, compared to the consensus estimate of $15.24 billion. During the same quarter last year, the firm earned $3.53 earnings per share. The business's revenue for the quarter was up 3.0% on a year-over-year basis. Analysts expect that Allstate will post 29.43 EPS for the current fiscal year.

Allstate Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be issued a dividend of $1.08 per share. The ex-dividend date is Monday, June 1st. This represents a $4.32 dividend on an annualized basis and a dividend yield of 1.9%. Allstate's dividend payout ratio is presently 9.53%.

Insider Activity

In related news, Director Andrea Redmond sold 2,225 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $202.91, for a total value of $451,474.75. Following the sale, the director owned 2,225 shares in the company, valued at approximately $451,474.75. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Mario Rizzo sold 18,578 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $218.80, for a total transaction of $4,064,866.40. Following the completion of the sale, the chief operating officer owned 82,227 shares in the company, valued at $17,991,267.60. This represents a 18.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,353 shares of company stock worth $4,851,560 over the last 90 days. 1.55% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Allstate

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALL. Brighton Jones LLC boosted its holdings in Allstate by 60.2% in the fourth quarter. Brighton Jones LLC now owns 6,500 shares of the insurance provider's stock worth $1,253,000 after purchasing an additional 2,443 shares during the last quarter. Revolve Wealth Partners LLC purchased a new position in shares of Allstate during the 4th quarter worth $231,000. WINTON GROUP Ltd purchased a new position in shares of Allstate during the 2nd quarter worth $210,000. Treasurer of the State of North Carolina boosted its stake in shares of Allstate by 2.5% during the 2nd quarter. Treasurer of the State of North Carolina now owns 123,272 shares of the insurance provider's stock worth $24,816,000 after acquiring an additional 3,051 shares during the last quarter. Finally, Ieq Capital LLC boosted its stake in shares of Allstate by 20.1% during the 2nd quarter. Ieq Capital LLC now owns 38,316 shares of the insurance provider's stock worth $7,713,000 after acquiring an additional 6,412 shares during the last quarter. Hedge funds and other institutional investors own 76.47% of the company's stock.

About Allstate

Allstate Corporation is a publicly traded insurance company headquartered in Northbrook, Illinois, and is one of the largest personal lines property and casualty insurers in the United States. Founded in 1931 as a subsidiary of Sears, Roebuck and Co, Allstate has grown into a diversified insurer that serves millions of consumers and businesses through a mix of distribution channels and product offerings.

The company underwrites a broad range of insurance products, with primary emphasis on auto and homeowners coverage.

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