Traders Purchase High Volume of Allete Call Options (NYSE:ALE)

Key Points

• Allete, Inc. experienced a significant spike in options trading, with traders acquiring 33,049 call options, marking a 5,354% increase over the average daily volume of 606 call options.
• Analysts maintain a "hold" rating for Allete, with one investment analyst reaffirming this stance, while the company has an average rating of "Hold" according to MarketBeat data.
• The firm announced a quarterly dividend of $0.73 per share, representing an annualized dividend yield of 4.3% with a payout ratio currently at 92.11%.

Allete, Inc. (NYSE:ALE - Get Free Report) saw unusually large options trading on Thursday. Traders acquired 33,049 call options on the company. This represents an increase of approximately 5,354% compared to the average daily volume of 606 call options.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "hold (c+)" rating on shares of Allete in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of "Hold".

Allete Stock Up 0.0%

Allete stock traded up $0.02 during mid-day trading on Thursday, reaching $67.37. 99,239 shares of the company were exchanged, compared to its average volume of 486,891. The business has a fifty day moving average of $65.07 and a 200 day moving average of $65.12. 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 firm has a market cap of $3.91 billion, a P/E ratio of 21.26 and a beta of 0.83. Allete has a 12-month low of $62.38 and a 12-month high of $67.49.

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

Allete Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 1st. Stockholders of record on Friday, August 15th were issued a dividend of $0.73 per share. 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 currently 92.11%.

Institutional Trading of Allete

Several hedge funds and other institutional investors have recently made changes to their positions in ALE. Farther Finance Advisors LLC lifted its holdings in shares of Allete by 6,155.6% during the 1st quarter. Farther Finance Advisors LLC now owns 2,815 shares of the utilities provider's stock valued at $183,000 after purchasing an additional 2,770 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of Allete by 15.2% during the 1st quarter. GAMMA Investing LLC now owns 1,835 shares of the utilities provider's stock valued at $121,000 after purchasing an additional 242 shares during the last quarter. SG Americas Securities LLC purchased a new stake in shares of Allete during the 1st quarter valued at $622,000. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Allete by 6.1% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 9,371 shares of the utilities provider's stock valued at $616,000 after purchasing an additional 540 shares during the last quarter. Finally, Exchange Traded Concepts LLC lifted its holdings in shares of Allete by 2.9% during the 1st quarter. Exchange Traded Concepts LLC now owns 12,123 shares of the utilities provider's stock valued at $796,000 after purchasing an additional 337 shares during the last quarter. Hedge funds and other institutional investors own 76.55% of the company's stock.

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.

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