How to buy ALLETE (ALE) stock

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 1,326 staff and has a trailing 12-month revenue of around 0.00.

ALLETE stock price (NYSE: ALE)

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

ALLETE shares at a glance

• Key figures

Information last updated 2021-07-23.

Latest market close	$68.89
52-week range	$48.44 - $71.66
50-day moving average	$69.47
200-day moving average	$67.83
Wall St. target price	$71.20
PE ratio	22.4004
Dividend yield	$2.482 (3.56%)
Earnings per share (TTM)	$3.06

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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.

Technical Analysis of ALLETE, Inc by TradingView

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.

ALLETE price performance over time

Historical closes compared with the close of $68.89 from 2021-05-28

1 week (2021-07-15)	N/A
1 month (2021-06-25)	-1.67%
3 months (2021-04-26)	-2.09%
6 months (2021-01-22)	N/A

1 year (2020-07-22)	N/A
2 years (2019-07-22)	N/A
3 years (2018-07-22)	N/A
5 years (2016-07-22)	N/A

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 22x. In other words, ALLETE shares trade at around 22x 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 $362.2 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	$1.2 billion
Operating margin TTM	11.75%
Gross profit TTM	$424.8 million
Return on assets TTM	1.48%
Return on equity TTM	5.38%
Profit margin	13.35%
Book value	$44.47
Market capitalisation	$3.6 billion

TTM: trailing 12 months

Shorting ALLETE shares

There are currently 771,405 ALLETE shares held short by investors – that's known as ALLETE's "short interest". This figure is 15.1% down from 908,785 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 248040.19292605). ALLETE's SIR currently stands at 3.11. In other words for every 100,000 ALLETE shares traded daily on the market, roughly 3110 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 0.01% of the outstanding shares (for every 100,000 ALLETE shares in existence, roughly 10 shares are currently held short) or 0.0148% of the tradable shares (for every 100,000 tradable ALLETE shares, roughly 15 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

Dividend payout ratio: 77.48% of net profits

Recently ALLETE has paid out, on average, around 77.48% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.61% 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 3.61% return on their shares, in the form of dividend payments. In ALLETE's case, that would currently equate to about $2.482 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 31 May 2021. The latest dividend was paid out to all shareholders who bought their shares by 12 May 2021 (the "ex-dividend date").

Have ALLETE's shares ever split?

ALLETE's shares were split on a 1:3 basis on 20 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 $48.4426 up to $71.66. 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 0.4712. 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.

Frequently asked questions

What percentage of ALLETE is owned by insiders or institutions?
Currently 0.52% of ALLETE shares are held by insiders and 75.562% by institutions. How many people work for ALLETE?
Latest data suggests 1,326 work at ALLETE. When does the fiscal year end for ALLETE?
ALLETE's fiscal year ends in December. Where is ALLETE based?
ALLETE's address is: 30 West Superior Street, Duluth, MN, United States, 55802-2093 What is ALLETE's ISIN number?
ALLETE's international securities identification number is: US0185223007 What is ALLETE's CUSIP number?
ALLETE's Committee on Uniform Securities Identification Procedures number is: 018522102