Zacks Investment Research Downgrades Allstate Corporation (The) (ALL) to Sell

Allstate Corporation (The) (NYSE:ALL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Shares of Allstate have underperformed the industry in last six months. The company is faced with exposure to catastrophe losses, owing to its large property insurance business, which imparts volatiliy to its earnings. Its underperforming brand Encompass is another drag. The company is poised to grow on the back of its well-performing property and liability segment. A number of initiatives undertaken to improve profitability in the auto segment will drive long-term growth. A strong balance sheet and intelligent capital management are the other positives. The acquisition of SquareTrade will diversify the company’s operations.”

ALL has been the topic of a number of other reports. Wells Fargo & Company restated a “buy” rating on shares of Allstate Corporation (The) in a research report on Tuesday, August 1st. BidaskClub cut Allstate Corporation (The) from a “buy” rating to a “hold” rating in a research report on Wednesday, August 16th. Morgan Stanley restated an “equal weight” rating and set a $91.00 price objective (up from $85.00) on shares of Allstate Corporation (The) in a research report on Thursday, July 6th. Keefe, Bruyette & Woods restated a “hold” rating and set a $88.00 price objective on shares of Allstate Corporation (The) in a research report on Friday, June 16th. Finally, UBS AG restated a “neutral” rating and set a $94.00 price objective (up from $86.00) on shares of Allstate Corporation (The) in a research report on Thursday, August 3rd. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $90.50.

Allstate Corporation (NYSE:ALL) opened at 93.09 on Tuesday. The company’s 50-day moving average price is $91.07 and its 200 day moving average price is $87.90. The company has a market capitalization of $33.64 billion, a PE ratio of 13.75 and a beta of 1.08. Allstate Corporation has a 52 week low of $66.55 and a 52 week high of $95.25.

Allstate Corporation (The) (NYSE:ALL) last released its quarterly earnings data on Tuesday, August 1st. The insurance provider reported $1.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.90 by $0.48. The business had revenue of $8.02 billion for the quarter, compared to analysts’ expectations of $7.99 billion. Allstate Corporation (The) had a return on equity of 12.73% and a net margin of 7.02%. Allstate Corporation (The)’s quarterly revenue was up 2.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.62 earnings per share. On average, equities research analysts anticipate that Allstate Corporation will post $5.87 EPS for the current year.

Allstate Corporation (The) declared that its board has approved a share repurchase program on Tuesday, August 1st that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the insurance provider to buy up to 63% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

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In other Allstate Corporation (The) news, President Matthew E. Winter sold 48,058 shares of the business’s stock in a transaction on Monday, July 17th. The stock was sold at an average price of $88.54, for a total value of $4,255,055.32. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Steven E. Shebik sold 35,197 shares of the business’s stock in a transaction on Monday, August 7th. The stock was sold at an average price of $94.28, for a total value of $3,318,373.16. Following the completion of the transaction, the chief financial officer now directly owns 127,560 shares in the company, valued at approximately $12,026,356.80. The disclosure for this sale can be found here. In the last three months, insiders sold 143,602 shares of company stock worth $13,272,624. Insiders own 1.58% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. boosted its stake in Allstate Corporation (The) by 1.5% in the second quarter. BlackRock Inc. now owns 26,847,576 shares of the insurance provider’s stock worth $2,374,397,000 after purchasing an additional 389,249 shares in the last quarter. Vanguard Group Inc. boosted its stake in Allstate Corporation (The) by 2.4% in the second quarter. Vanguard Group Inc. now owns 24,213,610 shares of the insurance provider’s stock worth $2,141,452,000 after purchasing an additional 575,645 shares in the last quarter. State Street Corp boosted its stake in Allstate Corporation (The) by 3.0% in the first quarter. State Street Corp now owns 18,074,304 shares of the insurance provider’s stock worth $1,472,962,000 after purchasing an additional 530,591 shares in the last quarter. Northern Trust Corp boosted its stake in Allstate Corporation (The) by 18.8% in the second quarter. Northern Trust Corp now owns 7,202,273 shares of the insurance provider’s stock worth $636,969,000 after purchasing an additional 1,141,782 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in Allstate Corporation (The) by 6.1% in the first quarter. AQR Capital Management LLC now owns 6,268,589 shares of the insurance provider’s stock worth $510,828,000 after purchasing an additional 363,084 shares in the last quarter. 76.12% of the stock is currently owned by institutional investors.

About Allstate Corporation (The)

The Allstate Corporation (Allstate) is a holding company for Allstate Insurance Company. The Company’s business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and other subsidiaries. It is engaged in the property-liability insurance business and the life insurance, retirement and investment products business.

Analyst Recommendations for Allstate Corporation (The) (NYSE:ALL)




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