Compass Point Begins Coverage on The Allstate (ALL)
Equities research analysts at Compass Point started coverage on shares of The Allstate (NYSE:ALL) in a research note issued to investors on Thursday, TheFlyOnTheWall.com reports. The firm set a “neutral” rating and a $63.00 price target on the stock. Compass Point’s price target would indicate a potential upside of 2.39% from the company’s current price.
The analysts wrote, “Shares of Allstate have performed very well for the past three years. We believe the market place for Allstate’s products will remain favorable, but do not see any near term catalysts that should push the company’s current pricing multiples higher. “Non-CAT weather continues to take a bite out of earnings despite lower major CAT activity, competitive pressure from regional and local insurers will likely increase which could pressure premium rates lower, and plans to expand agencies and policies in force could keep the expense ratio flat. Offsetting these near term concerns is a company that has regularly outperformed its personal lines peers on an underwriting basis, which is key to maintaining a healthy balance sheet. Improving demographic trends and increasing auto purchases should help to maintain annual premium growth in the single digit range. We do not expect a major near-term shift that will increase the size of the market (such as immigration reform expanding the number of insurance buyers, or a hardening market that raises premium rates) or major trends that would significantly reduce costs. With growth opportunities constrained, we expect the company will remain committed to its hefty stock buyback program. “We rate Allstate a Neutral with a $63 price target.”
ALL has been the subject of a number of other recent research reports. Analysts at Deutsche Bank reiterated a “hold” rating on shares of The Allstate in a research note on Tuesday, August 12th. They now have a $63.00 price target on the stock, up previously from $60.00. Separately, analysts at Keefe, Bruyette & Woods reiterated a “buy” rating on shares of The Allstate in a research note on Friday, August 1st. They now have a $65.00 price target on the stock, up previously from $63.00. Finally, analysts at Nomura reiterated a “neutral” rating on shares of The Allstate in a research note on Thursday, July 31st. They now have a $57.00 price target on the stock, up previously from $56.00. Six investment analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus price target of $64.62.
Shares of The Allstate (NYSE:ALL) traded down 0.28% on Thursday, hitting $61.36. The stock had a trading volume of 297,174 shares. The Allstate has a one year low of $47.66 and a one year high of $62.09. The stock has a 50-day moving average of $59.28 and a 200-day moving average of $57.34. The company has a market cap of $26.593 billion and a P/E ratio of 12.05. The Allstate also was the recipient of a large growth in short interest during the month of August. As of August 15th, there was short interest totalling 15,282,985 shares, a growth of 228.5% from the July 31st total of 4,652,908 shares. Approximately 3.7% of the shares of the stock are sold short. Based on an average daily volume of 3,048,443 shares, the days-to-cover ratio is currently 5.0 days.
The Allstate (NYSE:ALL) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $1.01 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.86 by $0.15. The company had revenue of $8.86 billion for the quarter, compared to the consensus estimate of $7.58 million. During the same quarter in the prior year, the company posted $1.12 earnings per share. The company’s quarterly revenue was up 5.0% on a year-over-year basis. Analysts expect that The Allstate will post $5.02 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, October 1st. Shareholders of record on Friday, August 29th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 1.82%. The ex-dividend date is Wednesday, August 27th.
In other The Allstate news, VP Samuel H. Pilch sold 11,073 shares of the stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $61.03, for a total value of $675,785.19. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
The Allstate Corporation (NYSE:ALL) is a holding company for Allstate Insurance Company.
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