Alamo Group, Inc. (NYSE:ALG) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Alamo Group has a consensus analyst rating of “Moderate Buy” from six brokerages, with an average 12-month price target of $224. Recent analyst actions were mixed, including a target cut from DA Davidson and an upgrade from Zacks Research.
• The company beat quarterly earnings expectations, reporting $2.56 EPS versus the $2.20 estimate and revenue of $417.15 million versus the $398.02 million expected. Analysts now forecast full-year EPS of 10.61.
• Alamo Group also raised its dividend with a recent quarterly payout of $0.34 per share, or $1.36 annually, for a 0.9% yield. The stock has also seen notable institutional buying, with hedge funds and asset managers owning the vast majority of shares.

Alamo Group, Inc. (NYSE:ALG - Get Free Report) has earned an average recommendation of "Moderate Buy" from the six brokerages that are presently covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $224.00.

A number of research analysts have recently issued reports on ALG shares. DA Davidson cut their target price on shares of Alamo Group from $190.00 to $188.00 and set a "neutral" rating for the company in a research note on Monday, May 11th. Zacks Research upgraded shares of Alamo Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 5th. Weiss Ratings cut shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, May 26th. Finally, William Blair started coverage on shares of Alamo Group in a research note on Monday, March 16th. They issued an "outperform" rating for the company.

Alamo Group Stock Up 2.0%

Shares of ALG opened at $152.84 on Wednesday. The stock has a market cap of $1.86 billion, a price-to-earnings ratio of 18.28, a P/E/G ratio of 0.88 and a beta of 1.11. The company has a quick ratio of 2.45, a current ratio of 4.32 and a debt-to-equity ratio of 0.23. Alamo Group has a 12 month low of $145.76 and a 12 month high of $233.29. The company has a 50-day moving average price of $163.97 and a two-hundred day moving average price of $175.87.

Alamo Group (NYSE:ALG - Get Free Report) last posted its earnings results on Monday, May 4th. The industrial products company reported $2.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.20 by $0.36. Alamo Group had a net margin of 6.21% and a return on equity of 9.71%. The company had revenue of $417.15 million during the quarter, compared to analysts' expectations of $398.02 million. Equities analysts predict that Alamo Group will post 10.61 EPS for the current fiscal year.

Alamo Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 15th were paid a $0.34 dividend. The ex-dividend date was Wednesday, April 15th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.9%. Alamo Group's payout ratio is 16.27%.

Insider Activity at Alamo Group

In related news, CEO Robert Paul Hureau purchased 460 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was acquired at an average price of $164.40 per share, with a total value of $75,624.00. Following the completion of the acquisition, the chief executive officer directly owned 12,506 shares in the company, valued at approximately $2,055,986.40. This trade represents a 3.82% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Nina C. Grooms sold 499 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $175.19, for a total transaction of $87,419.81. Following the completion of the sale, the director directly owned 2,844 shares of the company's stock, valued at approximately $498,240.36. This represents a 14.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.06% of the stock is currently owned by company insiders.

Institutional Trading of Alamo Group

A number of hedge funds and other institutional investors have recently modified their holdings of ALG. Wasatch Advisors LP acquired a new stake in shares of Alamo Group in the second quarter valued at approximately $51,427,000. Vaughan Nelson Investment Management L.P. acquired a new stake in shares of Alamo Group in the fourth quarter valued at approximately $39,213,000. Copeland Capital Management LLC increased its holdings in shares of Alamo Group by 189.3% in the first quarter. Copeland Capital Management LLC now owns 181,465 shares of the industrial products company's stock valued at $29,936,000 after purchasing an additional 118,737 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Alamo Group by 239.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 157,291 shares of the industrial products company's stock valued at $26,404,000 after purchasing an additional 110,941 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. increased its holdings in shares of Alamo Group by 72.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 230,180 shares of the industrial products company's stock valued at $38,641,000 after purchasing an additional 96,369 shares in the last quarter. Institutional investors and hedge funds own 92.36% of the company's stock.

Alamo Group Company Profile

Alamo Group, Inc engages in the design, manufacture and marketing of equipment for vegetation management, roadside maintenance, agricultural harvesting and industrial applications. The company offers a broad portfolio of products, including boom mowers, flail mowers, rotary cutters, snow removal equipment, slurry seal machines, railcar movers and tow tractors. These offerings are distributed under a variety of brand names and through a network of independent dealerships and distributors, meeting the needs of municipalities, highway departments, agricultural producers and industrial operators.

The company operates through two primary segments: Agricultural and Industrial.

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