On July 23, 2023, Victory Capital Management Inc. made headlines as it announced a significant increase in its position in Allete, Inc. (NYSE:ALE). According to the company’s most recent 13F filing with the Securities and Exchange Commission, Victory Capital Management Inc. boosted its stake in ALLETE by a staggering 29.3% during the first quarter of the year.

The fund now owns an impressive 2,150,903 shares of ALLETE’s stock, after acquiring an additional 487,520 shares during this period. This accumulation amounts to approximately 3.75% ownership of ALLETE and is valued at an estimated $138,454,000 as of Victory Capital Management’s latest filing.

ALLETE (NYSE:ALE), known for its operations as an energy company, has been making waves in its industry lately. However, it faced unexpected challenges when it released its quarterly earnings results on Wednesday, May 3rd.

During this quarter, ALLETE reported earnings per share of $1.02 – slightly missing the consensus estimate of $1.19 by a margin of ($0.17). Although falling short of expectations, it is important to note that ALLETE still maintains a return on equity of 5.40% and a net margin of 10.34%. Moreover, the company posted impressive revenue figures of $564.90 million for the quarter compared to analyst estimates of $376.00 million – indicating a substantial increase.

It is worth highlighting that ALLETE’s revenue for this particular quarter rose by an incredible 47.3% when compared to the same period last year – displaying promising growth potential for the company.

Equities analysts foresee a positive trajectory for ALLETE moving forward and anticipate that it will post EPS (earnings per share) of approximately 3.63 for the current fiscal year.

ALLETE operates through three major segments: Regulated Operations, ALLETE Clean Energy, and Corporate and Other. The company generates electricity from various sources including coal-fired, biomass co-fired/natural gas, hydroelectric, wind, and solar power.

In terms of its regulated operations, ALLETE provides essential Utility Electric Services in northwestern Wisconsin to roughly 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers. Additionally, the company offers regulated utility electric services in northeastern Minnesota to approximately 150,000 retail customers and 14 non-affiliated municipal customers.

ALLETE’s commitment to renewable energy is evident through its ALLETE Clean Energy segment. This division focuses on developing and operating clean energy projects that harness the growing potential of wind and solar power. As the world increasingly emphasizes sustainability practices, ALLETE’s dedication to alternative energy sources positions it favorably within the industry.

With Victory Capital Management Inc.’s significant increase in its stake in ALLETE and positive growth projections for the company’s financial performance this year, it appears that ALLETE is on an upward trajectory.

As ALLETE continues to provide essential utility services while expanding its clean energy operations, investors may want to keep a close eye on this dynamic organization as it journeys further into the future of the energy sector.

ALLETE: Institutional Investors Increase Holdings and Promising Market Outlook

Institutional investors and hedge funds have recently made significant changes to their holdings of ALLETE, a leading energy company. Notable among these investors is Affiance Financial LLC, which acquired shares of ALLETE in the fourth quarter of the previous year, amounting to approximately $34,000. CI Investments Inc. also purchased a stake in ALLETE during the same quarter, with an estimated value of around $40,000.

Another key player in this scenario is Northwestern Mutual Wealth Management Co., which witnessed a remarkable increase of 921.4% in its holdings of ALLETE stock during the fourth quarter. As a result, Northwestern Mutual now owns 715 shares valued at $46,000 after acquiring an additional 645 shares.

M&R Capital Management Inc. entered the scene by purchasing additional shares amounting to approximately $58,000 in the first quarter of this year. EverSource Wealth Advisors LLC also embraced ALLETE by acquiring a stake worth about $60,000 during the fourth quarter.

These institutional investors and hedge funds currently hold a dominant position in ALLETE, encompassing approximately 76.40% of the company’s stock.

On Friday morning, ALE stock opened at $58.98 with promising prospects for growth and stability. The financials indicate a strong current ratio of 1.23 and a quick ratio of 0.48 for ALLETE. Moreover, the company maintains a debt-to-equity ratio of 0.52.

ALLETE possesses robust market indicators including a fifty-day simple moving average of $59.59 and a two-hundred-day simple moving average of $61.76.

The energy giant has demonstrated its resilience amid market fluctuations with an impressive twelve-month low point at $47.77 and high at $67.45.

With a market capitalization totaling $3.38 billion and favorable financial ratios such as a P/E ratio of 18.55 and PEG ratio of 1.97, ALLETE stands firm as an appealing investment option.

ALLETE, Inc. primarily operates as an energy company, categorized into three main segments: Regulated Operations, ALLETE Clean Energy, and Corporate and Other. The company derives power from a mix of sources including coal-fired and biomass co-fired/natural gas plants, hydroelectric systems, wind turbines, and solar panels.

The regulated utility electric services provided by ALLETE cater to approximately 15,000 electric customers in northwestern Wisconsin. In addition to these services, the company renders utilities to 13,000 natural gas customers and 10,000 water customers in the same region.

Furthermore, ALLETE extends its regulated utility electric services to northeastern Minnesota—serving approximately 150,000 retail customers and providing assistance to 14 non-affiliated municipal customers.

Moreover, ALLETE acknowledges the importance of returning value to its shareholders through dividends. The company recently declared a quarterly dividend on Thursday, June 1st. Investors who were recorded on Monday, May 15th received a dividend amounting to $0.678 per share. This translates into an annualized dividend of $2.71 with a solid dividend yield of 4.60%. It is worth noting that the ex-dividend date was set for Friday, May 12th.

Several research analyst reports have focused on analyzing ALLETE’s performance in recent times. Sidoti raised their rating for ALLETE from “neutral” to “buy” while setting a price target of $74.00 for the company in April last year.

Bank of America took a different perspective by downgrading ALLETE from “neutral” to “underperform.” Furthermore, they lowered their price target from $63.00 to $54.00 in June this year.

Guggenheim also made adjustments by decreasing their price target for ALLETE stock from $54.00 to $49.00 in July.

StockNews.com initiated coverage and issued a “hold” rating for ALLETE in May, while Mizuho decreased their price objective on the stock from $64.00 to $58.00, settling for a “neutral” rating for the company.

Thus, based on Bloomberg.com data, analysis reveals that two research analysts have rated ALLETE as a sell, four have recommended holding the stock, and one has provided a buy rating for the company’s shares. The average analyst target price stands at $60.83.

In conclusion, with its diverse energy portfolio and robust financial indicators, ALLETE proves to be an intriguing investment option in the energy sector. However, market analysts suggest careful consideration of various factors and trends before making any investment decisions regarding this stock.

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