Why Allstate Stock Raced 5% Higher Today
Veteran insurance company Allstate (NYSE: ALL) hit a major stock-market milestone on Wednesday. The company shares surged by 5% to close at the highest level in their history. The soaring company also benefited from several positive analyst moves. Allstate's rise trounced that of the S&P 500 index, which rose by slightly under 0.4% on the day.
Investors were particularly excited by a major divestment announced by Allstate that morning. The company said it has signed a definitive agreement to sell its employer voluntary-benefits business for a cool $2 billion in cash. The buyer is peer insurance company StanCorp Financial.
The move is part of Allstate's efforts to exit its health and benefits operations. Following the sale, two divisions will remain under that umbrella -- individual and group health.
Source Fool.com
