Home News Stock Analysis: Allete (NYSE: ALE)

Stock Analysis: Allete (NYSE: ALE)

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Allete is part of the utilities sector and is part of the regulated utilities industry. The company CEO is Alan R. Hodnik. ALLETE Inc is engaged in the genration, transmission and distribution of electric power in the United States.

Previous Intraday Trading Performance:

The ALE stock showed a previous change of -2.71% with an open at 77.99 and a close of 77.15. It reached an intraday high of 78.39 and a low of 76.55.

SeekingAlpha:  Allete -3% as Mizuho downgrades following water services sale

Liquidity:

The stock has a market cap of $4.0b with 51.4m shares outstanding, of which the float is 50.8m shares. Trading volume reached 369,951 shares compared to its average volume of 221,521 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Allete shares returned 1.33% and in the past 30 trading days it returned 1.88%. Over three months, it changed 0.07%. In one year it has changed 14.02% and within that year its 52-week high was 82.82 and its 52-week low was 67.07. ALE stock is 15.03% above its 52 Week Low.

Our calculations show a 200 day moving average of 75.83 and a 50 day moving average of 76.96. Currently ALE stock is trading 1.74% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Allete -3% as Mizuho downgrades following water services sale

Earnings:

The last annual fiscal EPS for the company was reported at 3.38 that ended on 31st of December 2017, which according to the previous close, that is a PE of 22.83. Based on 2 analyst estimates, the consensus EPS for the next quarter is 1.14. The TTM EPS is 3.04, which comes to a TTM PE of 25.38. Historically, the PE high was 26.00 and the PE low was 15.50. If the stock reached its PE low, that would represent a price of 47.12, which is a decrease of -38.93%.

The following are the last four quarter reported earnings per share:
09-30-2018:  0.82
06-30-2018:  0.61
03-31-2018:  0.99
12-31-2017:  0.62

The dividend per share is currently 2.35, which is a dividend yield of 3.05%.

Base on our calculations, the intrinsic value per share is 80.61, which means it is possibly undervalued and has a margin of safety of 4.29%

Indicators to Watch:

Based on the latest filings, there is 1.20% of insider ownership and 109.40% of institutional ownership. Short-interest is 449,123, which is 0.87% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.73. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.28

SeekingAlpha:  Acxiom Holdings -2% ahead of tomorrow’s move to the NYSE

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 7.43%, return on assets is 3.04%, profit margin is 10.95%, price-to-sales is 3.95 and price-to-book is 1.93.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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