Allstate (ALL) Enters $500M Repurchase Agreement With Goldman (GS)

Allstate Corporation (ALL) shares are trading higher by 0.41% to $70.89 in early trading Friday after the company disclosed that on March 19, 2015, it entered into an accelerated share repurchase agreement with Goldman Sachs (GS) to purchase $500 million of its outstanding common stock. Allstate said the agreement is part of its repurchase program totaling $3 billion that was announced on February 4, 2015. In the first two hours of trading more than 1 million shares have already changed hands, compared to the stock’s average daily volume of 2.47 million shares.

On valuation measures, ALL shares are currently priced at 11.30x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 14.21x earnings multiple. The company’s current year and next year EPS growth estimates stand at 5.90% and 8.60% compared to the industry growth rates of 9.30% and 7.70%, respectively. ALL has a t-12 price/sales ratio of 0.83. EPS for the same period registers at $6.27.

Fundamentally, ALL shows the following financial data:

  • $3.20 billion in cash in most recent quarter
  • $110.31 billion t-12 total assets
  • $22.3 billion total equity
  • $35.24 billion t-12 revenue
  • $2.85 billion annual net income
  • $2.95 billion free cash flow

Allstate shares have advanced 0.27% in the last 4 weeks and 5.48% in the past three months. Over the past 5 trading sessions the stock has gained 0.28%.

Offering a dividend yield of 1.69%, shares of the Northbrook, Illinois-based insurance company are up 29.92% year-over-year and 0.93% year-to-date.

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