BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
In a recent filing with the Securities and Exchange Commission, Allstate Corp (NYSE:ALL), a prominent insurance provider with a market capitalization of $50 billion and an impressive InvestingPro Financial Health Score of "GREAT," reported that Executive Vice President and Chief Financial Officer Jesse E. Merten sold a significant portion of his holdings in the company. On February 10, Merten divested a total of 40,102 shares of Allstate common stock, generating approximately $7.48 million. The sale prices ranged from $186.0265 to $188.9904 per share, with the stock currently trading at $189.33 and maintaining a moderate P/E ratio of 10.9x.
In addition to the sales, Merten exercised stock options to acquire 39,102 shares, with prices for these acquisitions ranging from $100.80 to $124.26 per share, totaling approximately $4.76 million. Following these transactions, Merten holds 18,115 shares directly and an additional 7,484 shares indirectly through a 401(k) plan. For deeper insights into Allstate’s valuation and financial metrics, including exclusive ProTips and comprehensive analysis, visit InvestingPro.
These transactions were executed as part of a pre-established Rule 10b5-1 trading plan adopted in September 2024. The company has maintained dividend payments for 32 consecutive years, demonstrating strong financial stability.
In other recent news, Allstate Corporation has seen a flurry of activity from financial analysts. Raymond (NSE:RYMD) James maintained a Strong Buy rating for the company with a steady price target of $240.00, despite adjusting the operating EPS forecasts for 2025 and 2026 due to wildfire losses and increased advertising expenses. Keefe, Bruyette & Woods lifted Allstate’s price target to $240.00, keeping an Outperform rating following Allstate’s fourth-quarter 2024 earnings report. They adjusted their EPS estimates for 2025 and 2026 based on expectations of quicker net investment income growth and reduced core loss ratios.
CFRA analyst Catherine Seifert upgraded Allstate’s stock rating to ’Strong Buy’, maintaining a price target of $230.00. Seifert’s valuation is based on the firm’s projected 2026 operating EPS of $21.15 and 2025 operating EPS estimate of $17.45. BMO Capital Markets reiterated their Outperform rating on Allstate shares with a steady price target of $222.00, highlighting solid margin and policy-in-force figures.
Lastly, Morgan Stanley (NYSE:MS) raised Allstate’s price target slightly from $228.00 to $229.00, while reaffirming an Overweight rating on the stock. This was in response to Allstate’s fourth-quarter results for 2024 and the announcement of the sale of its Group Health business. All these recent developments indicate a generally positive outlook for Allstate from the financial analyst community.
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