Allstate Stock Rating Slipped to B at Stock Grader Amid Mixed Views

The Allstate Corporation saw its Total Grade decline from an A to a B on Louis Navellier's Stock Grader on November 11, moving the insurer from Very Strong to Strong. While the company retained an A in Quantitative Grade, its Fundamental Grade came in at C. The screening model cited weaknesses in sales growth, operating margin growth, and earnings growth, alongside very weak earnings momentum, contrasting with strengths in earnings surprises, analyst earnings revisions, and return on equity.

The evaluation follows the company's third-quarter earnings report on November 4, where Allstate announced earnings per share of $9.76, surpassing analyst expectations of $6.89. Revenue reached $17.35 billion, topping projected figures of $15.87 billion and rising .5% from the same quarter last year. However, catastrophe losses contributed to a roughly 45% year-over-year drop in net income, while management grapples with rising underlying auto loss costs and falling average premiums.

Wall Street analyst sentiment remains divided. MarketBeat reports an overall consensus rating of Hold on the shares with an average price target of $272. Wells Fargo maintained an Equal Weight stance while lifting its target to $252, and HSBC lowered its recommendation from Buy to Hold with a target of $271. Citigroup and Barclays kept negative views, holding Sell and Underweight ratings with targets of $225 and $228, respectively.

Institutional investors have actively adjusted their stakes in the insurer, collectively controlling 76.47% of the equity. Alps Advisors Inc. boosted its holdings by 22.2% during the third quarter by acquiring 6,296 shares, lifting its total to 34,601 shares valued at $7,677,000. In contrast, regulatory filings reveal insider selling earlier this year, including Chief Operating Officer Mario Rizzo selling 56,225 shares on August 11 at an average price of $264.48.