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The Motley Fool fool.com 03 Aug, 2022 21:45 am

Why Allstate's Stock Price Dropped 7.7% in July

Why Allstate's Stock Price Dropped 7.7% in July
The insurer's second-quarter report on catastrophic losses sent the stock price tumbling.

The report showed high catastrophic losses in the quarter -- about $1.Just to put that into perspective, Allstate had $462 million in catastrophic losses in Q1 and $752 million in 2021's Q2.However, higher catastrophic losses were expected to be a drag on Allstate's Q2 earnings report, which was due to be released after the market closed on Aug.That led analysts at Wells Fargo, Raymond James, and Barclays to lower their price targets for Allstate on July 21, sending the stock down even more.

Wells Fargo lowered it from $116 to $110; Raymond James dropped it from $165 to $155; and Barclays dropped it from $132 to $123.Rate increases have averaged approximately 8.

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