ALE

ALLETE, Inc. Utilities - Utilities - Diversified Investor Relations →

NO
18.2% ABOVE
↑ Moving away Was 17.8% last week
-15% -10% -5% 0% 5% 10% 15%+
Buy Threshold $57.47
14-Week RSI 91

ALLETE, Inc. (ALE) closed at $67.90 as of 2025-12-08, trading 18.2% above its 200-week moving average of $57.47. The stock moved further from the line this week, up from 17.8% last week. With a 14-week RSI of 91, ALE is in overbought territory.

Over the past 2733 weeks of data, ALE has crossed below its 200-week moving average 23 times. On average, these episodes lasted 23 weeks. The average one-year return after crossing below was -2.0%, suggesting these dips have not historically been reliable buying opportunities for this stock.

With a market cap of $3.9 billion, ALE is a mid-cap stock. Free cash flow yield is currently negative, meaning the company is burning cash. Return on equity stands at 2.6%. The stock trades at 1.4x book value.

Share count has increased 8.8% over three years, indicating dilution.

Over the past 33 years, a hypothetical investment of $100 in ALE would have grown to $4159, compared to $2805 for the S&P 500. That represents an annualized return of 12.0% vs 10.6% for the index — confirming ALE as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.

Free cash flow has been volatile over the past several years, making the quality of earnings harder to assess.

Growth of $100: ALE vs S&P 500

Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.

What Happens After ALE Crosses Below the Line?

Across 13 historical episodes, buying ALE when it crossed below its 200-week moving average produced an average return of +0.5% after 12 months (median -2.0%), compared to +7.4% for the S&P 500 over the same periods. 38% of those episodes were profitable after one year. After 24 months, the average return was +9.1% vs +21.2% for the index.

Each line shows $100 invested at the moment ALE crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.

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Historical Touches

ALE has crossed below its 200-week MA 23 times with an average 1-year return of +-2.0% after recovery.

Crossed BelowRecoveredWeeksMax Depth1-Year ReturnReturn Since Touch
Jul 1973Sep 1973710.5%-26.9%+58893.2%
Oct 1973Jun 19758732.9%-31.7%+57060.3%
Jun 1975Nov 1975198.9%+11.3%+64709.4%
Dec 1975Dec 197520.3%+16.9%+64709.4%
Oct 1978Jan 1979135.0%-4.5%+58893.2%
Feb 1979Mar 197942.1%-13.9%+58146.5%
Mar 1979Apr 197910.5%-21.9%+57418.4%
Apr 1979Jun 197973.3%-6.8%+57060.3%
Jul 1979Nov 198112124.3%-4.3%+56708.3%
Dec 1981Jan 198254.5%+21.2%+62933.8%
Dec 2007Apr 20081813.3%-19.2%+262.5%
Jul 2008Aug 200825.6%-17.7%+237.5%
Oct 2008Apr 20108039.3%-1.0%+284.6%
May 2010Jun 201063.2%+19.6%+258.5%
Jun 2010Jul 201012.5%+29.1%+268.9%
Feb 2020Mar 20215429.6%-6.0%+25.1%
Mar 2021Apr 202120.9%+1.6%+22.2%
Jun 2021Jun 202111.6%-10.4%+23.1%
Sep 2021Dec 20211611.3%-0.6%+26.9%
Jan 2022Nov 20224423.4%+3.7%+22.1%
Jan 2023Feb 202342.5%+1.4%+26.2%
Mar 2023Mar 202311.2%+0.5%+26.3%
Jun 2023Dec 2023248.6%+13.4%+29.3%
Average23+-2.0%

Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.

Data as of Friday close, 2025-12-08