What Happened?
Shares of insurance giant Allstate (NYSE: ALL) jumped 2.9% in the morning session after Wolfe Research maintained its "Outperform" rating on the stock, contributing to the positive move. The investment firm did, however, slightly lower its price target on Allstate to $244 from $250. The stock's rise suggested investors focused more on the continued positive rating than the minor target adjustment. The move also came as the wider stock market broke a three-day losing streak. This broader market rebound, reportedly helped by a rate cut from the U.S. Federal Reserve, likely provided an additional lift for Allstate's shares.
After the initial pop the shares cooled down to $206.77, up 2.8% from previous close.
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What Is The Market Telling Us
Allstate’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 3.2% on the news that a government report showed U.S. employers hired far fewer workers in August than economists expected. The disappointing jobs data sparked concerns on Wall Street that the U.S. economy might be slowing down too quickly, potentially signaling a recession. This uncertainty led to a widespread decline in stocks, with the S&P 500 falling 0.6% and the Dow Jones Industrial Average dropping 0.7% in morning trading. Investors reacted by selling off shares across various sectors, and Allstate was not immune to the negative market sentiment, despite some recent positive news, including a reiterated "Outperform" rating from BMO Capital.
Allstate is up 7.7% since the beginning of the year, and at $206.77 per share, it is trading close to its 52-week high of $214.65 from September 2025. Investors who bought $1,000 worth of Allstate’s shares 5 years ago would now be looking at an investment worth $1,980.
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