The Allstate Corporation (NYSE:ALL) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Wall Street sentiment is broadly positive on Allstate, with 22 analysts averaging a “Moderate Buy” rating and a consensus 12-month price target of about $248.26. Recent firms including Raymond James and Mizuho raised their targets, while HSBC and Wells Fargo were more cautious.
• Allstate’s latest quarterly results were strong, with EPS of $10.65 easily beating estimates of $7.31 and revenue of $16.94 billion topping expectations. The company also posted robust profitability metrics, including a 42.66% return on equity.
• The company announced a quarterly dividend of $1.08 per share, payable October 1, implying an annualized payout of $4.32 and a 1.7% yield. However, the article also notes some recent insider stock sales and a new legal overhang from an Oklahoma lawsuit alleging fraud.

The Allstate Corporation (NYSE:ALL - Get Free Report) has received an average recommendation of "Moderate Buy" from the twenty-two brokerages that are covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, eleven have issued a hold recommendation, seven have given a buy recommendation and three have given a strong buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $248.2632.

Several analysts have commented on the stock. Raymond James Financial increased their price target on shares of Allstate from $260.00 to $300.00 and gave the company a "strong-buy" rating in a research report on Monday, July 6th. Zacks Research downgraded shares of Allstate from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 7th. HSBC lowered shares of Allstate from a "buy" rating to a "hold" rating and boosted their price objective for the stock from $244.00 to $264.00 in a research note on Monday, July 6th. Wells Fargo & Company raised their target price on shares of Allstate from $229.00 to $243.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 6th. Finally, Mizuho lifted their price target on shares of Allstate from $255.00 to $272.00 and gave the stock an "outperform" rating in a report on Thursday.

Allstate Trading Up 0.0%

Shares of NYSE:ALL opened at $251.64 on Monday. The company has a market capitalization of $64.78 billion, a PE ratio of 5.55, a P/E/G ratio of 0.44 and a beta of 0.16. The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 0.25. Allstate has a 12-month low of $188.08 and a 12-month high of $257.67. The business's fifty day simple moving average is $224.15 and its 200-day simple moving average is $213.04.

Allstate (NYSE:ALL - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The insurance provider reported $10.65 earnings per share for the quarter, topping analysts' consensus estimates of $7.31 by $3.34. Allstate had a return on equity of 42.66% and a net margin of 17.81%.The firm had revenue of $16.94 billion during the quarter, compared to analysts' expectations of $15.24 billion. During the same period in the prior year, the business posted $3.53 EPS. The firm's quarterly revenue was up 3.0% on a year-over-year basis. As a group, equities research analysts predict that Allstate will post 29.99 earnings per share for the current fiscal year.

Allstate Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Monday, August 31st will be given a $1.08 dividend. The ex-dividend date of this dividend is Monday, August 31st. This represents a $4.32 dividend on an annualized basis and a dividend yield of 1.7%. Allstate's dividend payout ratio (DPR) is presently 9.53%.

Trending Headlines about Allstate

Here are the key news stories impacting Allstate this week:

• Positive Sentiment: Mizuho raised its price target on Allstate to $272 from $255 and kept an outperform rating, signaling confidence that the stock still has upside from recent levels.
• Positive Sentiment: Several recent articles argued that Allstate looks undervalued after earnings and may benefit from a relatively favorable catastrophe year, which could help underwriting results and profits.
• Neutral Sentiment: Allstate declared a quarterly dividend of $1.08 per share, reinforcing shareholder returns but not necessarily changing the near-term trading story.
• Neutral Sentiment: Comparative coverage versus Progressive and other insurance peers kept attention on Allstate’s valuation, but this was more of a relative-stock discussion than a direct catalyst.
• Negative Sentiment: Oklahoma Attorney General Gentner Drummond sued Allstate, alleging the insurer defrauded customers, adding a fresh legal overhang that could raise compliance and settlement concerns. Article Title
• Negative Sentiment: Allstate also drew attention after accusing Broadcom of auditing it because it ended its VMware/CA relationship, another sign of ongoing legal or contractual friction. Article Title

Insider Buying and Selling

In other Allstate news, insider Mark Q. Prindiville sold 1,550 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $216.27, for a total value of $335,218.50. Following the completion of the sale, the insider directly owned 27,558 shares in the company, valued at approximately $5,959,968.66. This trade represents a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a filing 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 dated Friday, May 1st. The stock was sold at an average price of $218.80, for a total value of $4,064,866.40. Following the completion of the sale, the chief operating officer directly owned 82,227 shares of the company's stock, valued at approximately $17,991,267.60. This represents a 18.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 22,353 shares of company stock worth $4,851,560 in the last ninety days. 1.55% of the stock is owned by insiders.

Hedge Funds Weigh In On Allstate

Several hedge funds and other institutional investors have recently modified their holdings of ALL. Coldstream Capital Management Inc. grew its position in Allstate by 0.6% during the 4th quarter. Coldstream Capital Management Inc. now owns 7,809 shares of the insurance provider's stock worth $1,625,000 after purchasing an additional 50 shares during the last quarter. Compound Planning Inc. raised its holdings in shares of Allstate by 1.6% in the fourth quarter. Compound Planning Inc. now owns 3,216 shares of the insurance provider's stock worth $669,000 after buying an additional 50 shares during the last quarter. Humankind Investments LLC lifted its stake in shares of Allstate by 4.5% during the third quarter. Humankind Investments LLC now owns 1,191 shares of the insurance provider's stock worth $256,000 after buying an additional 51 shares during the period. Cullen Frost Bankers Inc. lifted its stake in shares of Allstate by 0.9% during the fourth quarter. Cullen Frost Bankers Inc. now owns 5,815 shares of the insurance provider's stock worth $1,210,000 after buying an additional 52 shares during the period. Finally, Root Financial Partners LLC grew its holdings in shares of Allstate by 4.7% during 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 owned by hedge funds and other institutional investors.

Allstate Company Profile

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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