Cornercap Investment Counsel Inc., a respected institutional investor, has recently reduced its stake in ALLETE, Inc. (ALE) by 11.7% during the first quarter of the year. According to the company’s 13F filing with the Securities and Exchange Commission, Cornercap Investment Counsel Inc. now holds 16,731 shares of ALLETE’s stock after selling 2,214 shares during the period. The total value of Cornercap Investment Counsel Inc.’s holdings in ALLETE amounts to $1,077,000 as reported at the end of the most recent reporting period.
ALLETE (NYSE: ALE) disclosed its quarterly earnings results on August 8th. For this quarter, the utilities provider reported earnings per share (EPS) of $0.90 which surpassed analysts’ consensus estimates by $0.12. This positive result indicates a financial outperformance by ALLETE compared to market expectations.
Furthermore, ALLETE demonstrated strong operational performance with a net margin of 10.20% and a return on equity (ROE) of 5.81%. These figures indicate that the company effectively managed its resources and generated profits from its investments during this particular quarter.
In terms of revenue generation, ALLETE achieved $533.40 million for the quarter under review, surpassing the consensus estimate of $446.41 million. This represents a considerable year-over-year increase in quarterly revenue by approximately 43%.
In comparison to the corresponding period in the previous year, when ALLETE earned an EPS of $0.67, it is evident that there has been significant growth in profitability for this latest reporting period.
Financial analysts are optimistic about ALLETE’s future prospects and are expecting positive results for the current fiscal year as well. On average, they predict that ALLETE will post earnings per share of 3.63 for this year.
It is worth noting that these analyses and predictions are based on the most recent available information and market conditions as of August 26, 2023. Investors and stakeholders would be advised to conduct further research and analysis before making any investment decisions.
In conclusion, Cornercap Investment Counsel Inc.’s reduction of its position in ALLETE reflects a strategic move by this institutional investor. ALLETE’s strong financial performance for the last reported quarter, surpassing both revenue and earnings expectations, is an encouraging sign for investors. As ALLETE continues to enhance its operational efficiency and deliver positive results, it is poised for potential growth in the future.
[bs_slider_forecast ticker=”ALE”]
ALLETE, Inc. Attracts Attention of Large Investors and Analysts as its Potential is Highlighted
ALLETE, Inc., a utilities provider, has recently garnered the attention of several large investors who have either increased or reduced their stakes in the company. Victory Capital Management Inc., for instance, saw a substantial increase of 29.3% in its holdings of ALLETE during the first quarter. The firm now owns 2,150,903 shares worth $138,454,000 after purchasing an additional 487,520 shares during that period.
Another investor, Invesco Ltd., also increased its holdings in ALLETE by a significant margin of 61.6% during the first quarter. The firm now owns 759,218 shares worth $50,852,000 after purchasing an additional 289,528 shares. Similarly, State Street Corp witnessed a notable increase of 12.3% in its holdings of ALLETE during the same period and now owns 2,195,210 shares worth $147,035,000.
Such interest from prominent investors highlights the credibility and potential of ALLETE as an investment option. Moreover_, Cbre Investment Management Listed Real Assets LLC and Peregrine Capital Management LLC have also bought new positions in ALLETE worth $14,378,000 and $10,087_,000 respectively during different quarters_.
These institutional investments further emphasize the trust these firms have placed in ALLETE’s potential to deliver positive returns._ As it stands_, institutional investors collectively own 76.40% of the company’s stock._
On Friday_, August 26th_, ALE stock traded at $55.89 per share with a total volume of only 68_,664 shares exchanged _ compared to its average volume_._
This performance is influenced by several factors including specific moving averages._ The company currently has a simple moving average of_ $57.51 for _a span of__ fifty days_ as well as_ _a two hundred-day simple moving average reaching__ _$60__.54___._
Debt-to-equity ratio__, the company’s current and quick ratios__._ are also essential factors to consider. ALLETE has a ratio of 0___.50 for its debt-to-equity ratio, while the current ratio stands at 1__.17_ and __the quick ratio at__ _.66__._
With a market capitalization of $3__.21 billion_, a price-to-earnings (P/E) ratio of _1_.23__ _,_a ___price-to-earnings-growth (PEG) ratio of 1.91__, and a beta value of __0_.72___ ,_ ALLETE possesses a solid market presence and resilience in volatile trading environments.__._ The company witnessed a year-low point of _$47__.77 as well as_ _a high$_67__.45 over the course of one year delimiting the scope for potential goals._
Furthermore_, ALLETE recently announced its quarterly dividend which will be paid on Friday_, September 1st._ Stockholders who were registered by Tuesday_, August 15th will receive a $0_.678 quarterly dividend._ With an ex-dividend date falling on Monday__, August 14th, shareholders can expect an annualized dividend payout of $2_.71 or_ approximately4.85%. This represents an attractive opportunity for investors seeking consistent income streams from their investment in ALLETE.
In light of these developments within the company,_ several equities analysts have weighed in on the prospects for ALLETE. For instance_, StockNews.com initiated coverage on ALLETE with a “hold” rating for the company__. Meanwhile_, Guggenheim reduced their price objective for ALLETE from $54 to $49, expressing less optimism in its future trajectory.__ ._Similarly_, Mizuho decreased their own price objective from __$64 to_$58 indicating some reservations about future growth prospects.
To further complicate matters__, Bank of America changed their rating on ALLETE from “neutral” to “underperform”_ while lowering the price objective from $63 to $54_. This suggests a more bearish outlook on the stock respectively.
In light of these diverse perspectives_, ALLETE currently holds an average rating of “Hold”_as per data sourced from Bloomberg.com._ With a consensus price target of_$60_.83_, it appears that there is no unanimous agreement among analysts regarding_ _the future trajectory of the company.
As we look ahead_, investors will be closely monitoring how these recent developments in institutional investments_ and analyst ratings shape ALLETE’s performance in the coming months.
