On June 26, 2023, it was reported that Hills Bank & Trust Co lowered its position in The Allstate Co. (NYSE:ALL) by 12.1% in the first quarter. This move was detailed in the company’s most recent Form 13F filing with the Securities & Exchange Commission. In this statement, it was revealed that Hills Bank & Trust Co now owns 8,119 shares of the insurance provider’s stock after selling 1,115 shares throughout the quarter. At the end of this period, these holdings were valued at $900,000 – a significant decrease from where they were previously.
This news comes after The Allstate Corporation posted its latest quarterly earnings data on May 4th of this year. During that quarter, the insurance provider reported ($1.30) earnings per share for that reporting period – surpassing analysts’ consensus estimates of ($1.94) by $0.64 per share. In terms of revenue generated during this period, Allstate brought in $13.79 billion which surpassed the market’s expectations of $13.68 billion.
Despite the positive strides made by Allstate during this reporting period, there is certainly room for improvement moving forward. The company had a negative net margin of 4.33%, and a negative return on equity of 7.77%. These figures suggest some issues with efficiency within the company and management will need to find ways to balance operating costs against revenue generated effectively.
The Allstate Corporation has four segments through which it operates: Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability segments respectively. These segments offer various insurance products across a range of consumer markets such as private passenger auto and homeowners insurance as well as other personal lines products and commercial lines products under a brand name encompass.
Looking ahead to future quarters and beyond, industry experts predict that The Allstate Co will post an EPS of 1.79 for the current fiscal year as there is still plenty of demand for insurance services, and Allstate’s established brand name should make it well-positioned to succeed in this industry. However, indicators such as Hills Bank & Trust Co lowering their stake in the company suggest that investors may be cautious about entering the market at this time. Regardless, only time will tell how things unfold moving forward.
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Institutional Investors and Hedge Funds Show Interest in Allstate Corporation Stock
Allstate Corporation’s recent stock movements have caught the attention of various institutional investors and hedge funds. Sei Investments Co. increased its position in Allstate by approximately 40.2% during the first quarter, whilst Prudential PLC acquired a new position in Allstate during the same period. Cetera Investment Advisers also increased its stake in the company by 13.9%. Dakota Wealth Management entered into a new position in Allstate, while Sequoia Financial Advisors LLC upped its share holdings by 36.2%.
Allstate’s shares opened at $107.53 on June 26th, with an overall market capitalization of $28.26 billion. The company’s fifty-day simple moving average figure stands at $113.54 and its two hundred-day simple moving average figure is at $122.07.
Based out of Canada and the US, The Allstate Corporation specializes in offering property and casualty insurance to its customers through private passenger auto and homeowners policies under the brand names Encompass and All State. The corporation operates through four segments: Protection Services; Protection; Run-off Property-Liability; and Health and Benefits.
Recently, on June 3rd, the corporation announced a quarterly dividend payment to shareholders of record on Friday, June 2nd,. Each share will receive an amount of dividend worth $0.89 per share, providing an annualized dividend yield to shareholders at around 3.31%. The payout ratio stands at -40.14%.
Various brokerages have provided ratings for ALL stocks recently with William Blair giving it an “outperform” rating from “market perform.” At present this service has an average target price of $138.38 as listed on Bloomberg.com – earnings potential that can steadily bring value to investors over time.
Thus, this analysis concludes that despite fluctuations within the stock market as witnessed recently with ALL shares dropping but rising again following Moody’s decision last week to upgrade Allstate Insurance’s financial strength rating, investing in All State stock may prove lucrative under the right circumstances. With its solid dividend yield and modest P/E ratio, coupled with Allstate Insurance’s reputation as a provider of quality insurance products and services in the US and Canada, it is possible that higher earnings can be made over time.
