Allstate Corporation (ALL), one of the largest insurance providers in the United States, has recently been the subject of analysis by several research firms. Bank of America, Raymond James, Barclays, Morgan Stanley, and JPMorgan Chase & Co. have all provided insights into the company’s stock performance and assigned ratings accordingly.
Bank of America lowered their price objective on Allstate shares from $143.00 to $138.00 in a research note dated August 2nd. Raymond James also adjusted their price objective, cutting it from $155.00 to $145.00 while maintaining a “strong-buy” rating on the stock on August 3rd. Similarly, Barclays decreased their target price to $107.00 from $113.00 and set an “equal weight” rating on August 14th. Morgan Stanley reaffirmed their “equal weight” rating with a price objective of $117.00 on August 1st. Lastly, JPMorgan Chase & Co dropped their price objective from $162.00 to $154.00 and maintained an “overweight” rating in a report released on August 2nd.
The consensus among analysts is diverse, with one analyst giving Allstate a sell rating, five assigning hold ratings, seven issuing buy ratings, and one labeling it as a strong buy investment opportunity.
According to Bloomberg.com data referenced as of August 28th, Allstate’s stock currently holds a consensus rating of “Moderate Buy,” with an average price target of approximately $135.31.
Furthermore, recent insider activity within the company was disclosed regarding Director Judith A. Sprieser’s sale of 1,565 shares on August 3rd at an average price of $111.22 per share resulting in a total transaction value of around $174,059.30 USD.
Overall market sentiment towards Allstate seems moderate as trading began on Monday with shares opening at $105.14. The company has a current ratio and quick ratio of 0.37, indicating its ability to meet short-term financial obligations. Allstate also holds a debt-to-equity ratio of 0.59 and reports show that insiders own 1.70% of the company’s stock.
Allstate’s performance in the past year has seen a range between $100.57 as its lowest point and $142.15 as its highest point. Presently, the stock reflects a market capitalization of approximately $27.50 billion, with a price-to-earnings ratio of -10.16 and a beta value of 0.57.
Investors should carefully consider these ratings and developments when making investment decisions regarding Allstate Corporation, taking into account their own risk tolerance and investment strategies.
Please note that stock prices are subject to market volatility and can change rapidly, so it is advisable to consult with financial professionals or conduct thorough research before making any investment decisions based on this information.
The Allstate Corporation
ALL
Buy
Updated on: 28/08/2023
Allstate Faces Challenges and Concerns with Revised Q4 2023 EPS Estimate
August 28, 2023 – In a note issued to investors on Friday, August 25th, stock analysts at Zacks Research made a surprising adjustment to their Q4 2023 EPS estimates for insurance provider Allstate (NYSE:ALL). Zacks Research analyst D. Chatterjee has lowered the earnings per share (EPS) forecast for the quarter from $2.39 to $2.38, causing perplexity among investors.
This downward revision in Allstate’s Q4 2023 EPS estimate comes after their prior forecast was already considered conservative. The consensus estimate for the insurance company’s current full-year earnings stands at ($1.99) per share, indicating potential challenges ahead.
Further projections from Zacks Research shed light on Allstate’s expected performance in the coming quarters. They anticipate Q1 2024 earnings of $2.22 EPS and Q2 2024 earnings of $1.30 EPS. Looking further into the future, they have estimated FY2024 earnings at $10.01 EPS and Q2 2025 earnings at $3.64 EPS.
In addition to these sobering predictions, recent insider trading activity has raised eyebrows among market observers. Director Judith A. Sprieser sold 1,565 shares of Allstate stock on Thursday, August 3rd at an average price of $111.22 per share, resulting in a total transaction value of $174,059.30. This filing with the Securities & Exchange Commission revealed that insiders currently possess approximately 1.70% ownership of Allstate.
Taking a closer look at Allstate’s recent financial performance, it is evident that challenges lie ahead for the company. On August 2nd, when they last released their quarterly earnings results, Allstate reported an EPS of ($4.42), missing the consensus estimate of ($3.83) by ($0.59). Their negative net margin of 4.80% and negative return on equity of 14.69% are areas of concern. However, there was a positive note as Allstate’s revenue for the quarter reached $13.98 billion, surpassing analyst estimates by a significant margin.
To further complicate matters, Allstate recently announced its quarterly dividend. Shareholders of record as of Thursday, August 31st will receive a dividend payment of $0.89 per share on Monday, October 2nd. With an ex-dividend date set for Wednesday, August 30th, this translates to an annualized dividend of $3.56 and a yield of 3.39%. The payout ratio currently stands at -34.40%, which adds yet another layer of complexity to Allstate’s financial situation.
Overall, the adjustment made by Zacks Research to their Q4 2023 EPS estimate for Allstate has triggered concerns among investors and analysts alike. As market observers await further developments, it is clear that challenges lie ahead for the insurance provider in an increasingly uncertain economic landscape.
