Allstate (ALL) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Allstate (NYSE:ALL) from a strong-buy rating to a hold rating in a research report sent to investors on Thursday morning.

According to Zacks, “Allstate Corporation is poised to grow on the back of its well performing property and liability segment. A number of initiatives undertaken by Allstate to improve profitability in the auto segment will also drive long-term growth. A strong balance sheet and intelligent capital management are other positives for the company. Moreover, the acquisition of SquareTrade will diversify its operations going forward. In a year’s time, the shares have underperformed the industry. However, it has witnessed its 2019 earnings estimates move up over the past 30 days. Nevertheless, Allstate is faced with exposure to catastrophe losses, owing to the large property insurance business. The underperforming brand Encompass is another drag.”

Other analysts have also issued reports about the company. ValuEngine upgraded Allstate from a sell rating to a hold rating in a research note on Saturday, September 1st. Citigroup lowered their target price on Allstate from $108.00 to $107.00 and set a buy rating on the stock in a research note on Friday, July 20th. Credit Suisse Group assumed coverage on Allstate in a research note on Tuesday, August 7th. They issued an outperform rating and a $114.00 target price on the stock. Wells Fargo & Co restated a hold rating on shares of Allstate in a research note on Thursday, May 17th. Finally, Buckingham Research upgraded Allstate from an underperform rating to a neutral rating and set a $88.00 target price on the stock in a research note on Wednesday, July 18th. Ten equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $103.92.

Shares of ALL opened at $99.99 on Thursday. The firm has a market capitalization of $33.79 billion, a price-to-earnings ratio of 14.90, a PEG ratio of 1.24 and a beta of 0.92. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.26 and a current ratio of 0.26. Allstate has a 1 year low of $88.29 and a 1 year high of $105.36.

Allstate (NYSE:ALL) last issued its earnings results on Wednesday, August 1st. The insurance provider reported $1.90 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.45 by $0.45. The firm had revenue of $8.46 billion for the quarter, compared to analyst estimates of $8.53 billion. Allstate had a return on equity of 15.21% and a net margin of 9.06%. The business’s revenue was up 5.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.38 earnings per share. research analysts anticipate that Allstate will post 9.42 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 1st. Investors of record on Friday, August 31st will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, August 30th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.84%. Allstate’s payout ratio is 27.42%.

In related news, insider Glenn T. Shapiro sold 21,728 shares of the business’s stock in a transaction dated Monday, August 6th. The stock was sold at an average price of $98.70, for a total transaction of $2,144,553.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Susan L. Lees sold 22,189 shares of the business’s stock in a transaction dated Tuesday, August 7th. The stock was sold at an average price of $99.24, for a total value of $2,202,036.36. The disclosure for this sale can be found here. Insiders own 1.40% of the company’s stock.

A number of institutional investors have recently bought and sold shares of ALL. Boston Partners grew its position in Allstate by 11.2% during the second quarter. Boston Partners now owns 10,511,724 shares of the insurance provider’s stock worth $959,406,000 after buying an additional 1,061,730 shares in the last quarter. Old Mutual Global Investors UK Ltd. purchased a new position in Allstate during the first quarter worth about $80,852,000. FMR LLC grew its position in Allstate by 24.7% during the second quarter. FMR LLC now owns 4,096,814 shares of the insurance provider’s stock worth $373,917,000 after buying an additional 811,694 shares in the last quarter. Millennium Management LLC grew its position in Allstate by 101.9% during the second quarter. Millennium Management LLC now owns 1,589,586 shares of the insurance provider’s stock worth $145,082,000 after buying an additional 802,167 shares in the last quarter. Finally, Victory Capital Management Inc. grew its position in Allstate by 37.1% during the second quarter. Victory Capital Management Inc. now owns 2,103,032 shares of the insurance provider’s stock worth $191,944,000 after buying an additional 569,363 shares in the last quarter. Institutional investors and hedge funds own 76.21% of the company’s stock.

Allstate Company Profile

The Allstate Corporation, together with its subsidiaries, engages in property and casualty insurance, and life insurance businesses in the United States and Canada. The company's Allstate Protection segment sells private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance policies; other personal lines products, including renter, condominium, landlord, boat, umbrella, and manufactured home insurance policies; and commercial lines products under the Allstate, Esurance, and Encompass brand names.

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