How to buy ALLETE stock - 09 March

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How to buy ALLETE stock

Own ALLETE stock in just a few minutes.

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ALLETE, Inc is an utilities-diversified business based in the US. ALLETE shares (ALE) are listed on the NYSE and all prices are listed in US Dollars. ALLETE employs 1,322 staff and has a trailing 12-month revenue of around USD$1.2 billion.

How to buy shares in ALLETE

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for ALLETE. Find the stock by name or ticker symbol: ALE. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until ALLETE reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of ALLETE, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of ALLETE. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

ALLETE share price

Use our graph to track the performance of ALE stocks over time.

ALLETE shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$46.7389 - USD$73.4313
50-day moving average USD$64.8624
200-day moving average USD$58.1097
Wall St. target priceUSD$70
PE ratio 18.2925
Dividend yield USD$2.47 (3.94%)
Earnings per share (TTM) USD$3.35

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy ALLETE stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is ALLETE under- or over-valued?

Valuing ALLETE stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of ALLETE's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

ALLETE's P/E ratio

ALLETE's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 18x. In other words, ALLETE shares trade at around 18x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

ALLETE's PEG ratio

ALLETE's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.71. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into ALLETE's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

ALLETE's EBITDA

ALLETE's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$376.3 million.

The EBITDA is a measure of a ALLETE's overall financial performance and is widely used to measure a its profitability.

ALLETE financials

Revenue TTM USD$1.2 billion
Operating margin TTM 13.64%
Gross profit TTM USD$424.8 million
Return on assets TTM 1.72%
Return on equity TTM 6.29%
Profit margin 14.9%
Book value $44.042
Market capitalisation USD$3.2 billion

TTM: trailing 12 months

Shorting ALLETE shares

There are currently 1.1 million ALLETE shares held short by investors – that's known as ALLETE's "short interest". This figure is 9.7% down from 1.2 million last month.

There are a few different ways that this level of interest in shorting ALLETE shares can be evaluated.

ALLETE's "short interest ratio" (SIR)

ALLETE's "short interest ratio" (SIR) is the quantity of ALLETE shares currently shorted divided by the average quantity of ALLETE shares traded daily (recently around 374715.12027491). ALLETE's SIR currently stands at 2.91. In other words for every 100,000 ALLETE shares traded daily on the market, roughly 2910 shares are currently held short.

However ALLETE's short interest can also be evaluated against the total number of ALLETE shares, or, against the total number of tradable ALLETE shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case ALLETE's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 ALLETE shares in existence, roughly 20 shares are currently held short) or 0.0271% of the tradable shares (for every 100,000 tradable ALLETE shares, roughly 27 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against ALLETE.

Find out more about how you can short ALLETE stock.

ALLETE share dividends

71%

Dividend payout ratio: 70.73% of net profits

Recently ALLETE has paid out, on average, around 70.73% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.02% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), ALLETE shareholders could enjoy a 4.02% return on their shares, in the form of dividend payments. In ALLETE's case, that would currently equate to about $2.47 per share.

ALLETE's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

ALLETE's most recent dividend payout was on 1 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 12 February 2021 (the "ex-dividend date").

Have ALLETE's shares ever split?

ALLETE's shares were split on a 1:3 basis on 21 September 2004. So if you had owned 3 shares the day before before the split, the next day you'd have owned 1 share. This wouldn't directly have changed the overall worth of your ALLETE shares – just the quantity. However, indirectly, the new 200% higher share price could have impacted the market appetite for ALLETE shares which in turn could have impacted ALLETE's share price.

ALLETE share price volatility

Over the last 12 months, ALLETE's shares have ranged in value from as little as $46.7389 up to $73.4313. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while ALLETE's is 0.4472. This would suggest that ALLETE's shares are less volatile than average (for this exchange).

ALLETE overview

ALLETE, Inc. operates as an energy company. The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, biomass co-fired / natural gas, hydroelectric, wind, and solar. The company provides regulated utility electric services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric services in northeastern Minnesota to approximately 145,000 retail customers and 15 non-affiliated municipal customers. It also owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. In addition, the company focuses on developing, acquiring, and operating clean and renewable energy projects; and owns and operates approximately 1,000 megawatts of wind energy generation facility. Further, it is involved in the coal mining operations in North Dakota; and real estate investment activities in Florida. The company owns and operates 158 substations with a total capacity of 10,066 megavolt amperes. It serves taconite mining, paper, pulp and secondary wood products, pipeline, and other industries. The company was formerly known as Minnesota Power, Inc. and changed its name to ALLETE, Inc. in May 2001. ALLETE, Inc. was incorporated in 1906 and is headquartered in Duluth, Minnesota.

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