Allstate Corp

Argus Research cut Allstate from buy to hold, citing an overshoot of its price target and a fair valuation, while Keefe, Bruyette & Woods downgraded to “moderate sell” because of sharply higher catastrophe losses. Premium growth has slowed to low single digits, partly due to competitive price pressure; some policy prices fell in Q2. Despite strong Q2 results (EPS $8.99, revenue $18.6 billion) and intact fundamentals, the combined loss burden (July catastrophe losses around $682 million, YTD about $2.4 billion) and valuation concerns create a challenging near-term environment for the stock. » Mere på de.investing.com

Wells Fargo downgraded Allstate from "Equal Weight" to "Underweight" and set a $250 price target, after which the stock fell about 1.0% in premarket trading to $272.26. Barclays reiterated a cautious stance with a $226 target, reinforcing the subdued sentiment. Allstate had reported strong Q2 results (adjusted EPS $8.99, net income +55.9% to $3.2bn, combined ratio improved to 86.6), but written net premium growth was moderate at 2.6%. Analysts see risks from slowing growth in the private auto business and intensified price competition, so the post-earnings rally is viewed as already priced in. » Mere på de.investing.com

The Allstate stock reached an all-time high of $258.06 and shows a six-month return of 32.79% as well as year-over-year growth of 31.46%. InvestingPro rates the stock as undervalued at the current level and cites a moderate P/E ratio of 5.61; Allstate has increased its dividend for 15 consecutive years. At the same time, the company reported catastrophe losses of $563 million in June (Q2 total losses $1.72 billion), which led to a downgrade by UBS, while BMO the rating... » Mere på de.investing.com

Allstate reported June catastrophe losses of $563 million (after-tax $445 million). Total catastrophe losses for the second quarter amounted to $1.72 billion ($1.36 billion after-tax). The stock returned 26% over the past six months and is trading at a price-earnings ratio of 5.28 with a market capitalization of $61.65 billion. The company provided no details on the underlying events or regions. » Mere på de.investing.com

Allstate shares fell about 0.9% in premarket trading after UBS and HSBC cut their ratings from "Buy" to "Neutral/Hold." UBS warned of a deterioration in underwriting margins and a normalization of loss ratios, while HSBC simultaneously nudged up its price target. Industry-wide concerns were heightened by weaker metrics from Progressive. Allstate announced the appointment of Christian Lown as new CFO effective August 3; investors are also focused on Q2 results due August 5. » Mere på de.investing.com