Allstate (ALL) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of Allstate (NYSE:ALL) from a hold rating to a buy rating in a research note issued to investors on Thursday. The brokerage currently has $100.00 price target on the insurance provider’s stock.
According to Zacks, “Allstate Corporation’s fourth-quarter 2018 earnings of $1.24 per share beat the Zacks Consensus Estimate by 22.8% but decreased 40.7% year over year due to heavy catastrophe loss and a decline in revenues. Allstate 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 its auto segment will also drive long-term growth. A strong balance sheet and intelligent capital management are the other positives. The acquisition of SquareTrade, PlumChoice and InfoArmor should provide diversification benefits. However, shares of Allstate have underperformed the industry in a year’s time. The company is exposed to catastrophe losses owing to the large property insurance business. The underperforming Encompass brand is another drag. Escalating expenses and high debt levels are other concerns. “
A number of other research firms have also recently commented on ALL. Citigroup set a $115.00 target price on shares of Allstate and gave the company a buy rating in a research report on Friday, October 12th. Wells Fargo & Co set a $100.00 price objective on shares of Allstate and gave the stock a hold rating in a research note on Thursday, November 8th. William Blair upgraded shares of Allstate from an underperform rating to a market perform rating in a research note on Wednesday, February 6th. ValuEngine upgraded shares of Allstate from a sell rating to a hold rating in a research note on Tuesday, December 18th. Finally, Bank of America cut their price objective on shares of Allstate from $113.00 to $110.00 and set a buy rating on the stock in a research note on Friday, November 2nd. Eight investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Allstate has a consensus rating of Hold and a consensus price target of $101.27.
Allstate (NYSE:ALL) last posted its earnings results on Tuesday, February 5th. The insurance provider reported $1.24 EPS for the quarter, beating the Zacks’ consensus estimate of $1.01 by $0.23. Allstate had a net margin of 5.66% and a return on equity of 14.00%. The company had revenue of $8.71 billion during the quarter, compared to analysts’ expectations of $8.66 billion. During the same quarter in the prior year, the company posted $2.09 earnings per share. Allstate’s revenue for the quarter was up 6.2% compared to the same quarter last year. As a group, equities analysts anticipate that Allstate will post 9.24 EPS for the current fiscal year.
Several large investors have recently added to or reduced their stakes in ALL. BlackRock Inc. grew its position in Allstate by 10.6% during the third quarter. BlackRock Inc. now owns 27,138,023 shares of the insurance provider’s stock valued at $2,678,525,000 after buying an additional 2,608,827 shares during the period. LSV Asset Management grew its position in Allstate by 2.4% during the fourth quarter. LSV Asset Management now owns 5,650,351 shares of the insurance provider’s stock valued at $466,888,000 after buying an additional 130,257 shares during the period. 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 valued at $373,917,000 after buying an additional 811,694 shares during the period. Oregon Public Employees Retirement Fund grew its position in Allstate by 8,063.9% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 3,165,142 shares of the insurance provider’s stock valued at $38,000 after buying an additional 3,126,372 shares during the period. Finally, Bank of Montreal Can grew its position in Allstate by 65.3% during the fourth quarter. Bank of Montreal Can now owns 2,957,927 shares of the insurance provider’s stock valued at $244,414,000 after buying an additional 1,168,707 shares during the period. Hedge funds and other institutional investors own 77.09% of the company’s stock.
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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