Alamo Group (NYSE:ALG) Posts Quarterly Earnings Results, Misses Expectations By $0.12 EPS

Key Points

• Alamo Group reported a quarterly EPS of $2.57, missing analysts' estimates by $0.12, although their revenue of $419.07 million surpassed expectations.
• The company declared a quarterly dividend of $0.30 per share, resulting in an annualized dividend of $1.20 and a yield of 0.5%.
• Recent analyst ratings have been mixed, with Baird R W upgrading the stock to a "strong-buy", while others have maintained a cautious stance with price targets ranging from $209.00 to $260.00.

Alamo Group (NYSE:ALG - Get Free Report) posted its quarterly earnings data on Wednesday. The industrial products company reported $2.57 EPS for the quarter, missing the consensus estimate of $2.69 by ($0.12), Zacks reports. Alamo Group had a net margin of 7.41% and a return on equity of 11.45%. The business had revenue of $419.07 million during the quarter, compared to analysts' expectations of $406.75 million.

Alamo Group Price Performance

Shares of Alamo Group stock traded down $0.52 on Monday, hitting $222.06. The company's stock had a trading volume of 124,853 shares, compared to its average volume of 113,498. Alamo Group has a 52-week low of $157.07 and a 52-week high of $230.15. The company has a quick ratio of 2.76, a current ratio of 4.56 and a debt-to-equity ratio of 0.18. The firm has a fifty day moving average price of $217.66 and a 200-day moving average price of $194.76. The company has a market capitalization of $2.69 billion, a P/E ratio of 22.61, a price-to-earnings-growth ratio of 1.16 and a beta of 1.10.

Alamo Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 29th. Investors of record on Wednesday, July 16th were given a $0.30 dividend. The ex-dividend date was Wednesday, July 16th. This represents a $1.20 annualized dividend and a dividend yield of 0.5%. Alamo Group's payout ratio is currently 12.22%.

Insider Activity

In related news, CEO Jeffery Allen Leonard sold 3,500 shares of the business's stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $201.52, for a total value of $705,320.00. Following the completion of the transaction, the chief executive officer owned 40,913 shares of the company's stock, valued at approximately $8,244,787.76. The trade was a 7.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Richard Hodges Raborn sold 500 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $201.84, for a total transaction of $100,920.00. Following the transaction, the executive vice president directly owned 12,948 shares of the company's stock, valued at approximately $2,613,424.32. This represents a 3.72% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.18% of the company's stock.

Institutional Trading of Alamo Group

A number of institutional investors and hedge funds have recently bought and sold shares of ALG. Jones Financial Companies Lllp boosted its holdings in Alamo Group by 3,140.0% in the 1st quarter. Jones Financial Companies Lllp now owns 324 shares of the industrial products company's stock worth $58,000 after acquiring an additional 314 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Alamo Group by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 6,084 shares of the industrial products company's stock valued at $1,084,000 after buying an additional 251 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Alamo Group by 12.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 36,162 shares of the industrial products company's stock valued at $6,444,000 after buying an additional 4,062 shares during the last quarter. Finally, Millennium Management LLC boosted its stake in shares of Alamo Group by 164.7% during the 1st quarter. Millennium Management LLC now owns 63,588 shares of the industrial products company's stock valued at $11,332,000 after buying an additional 39,564 shares during the last quarter. Institutional investors and hedge funds own 92.36% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on ALG shares. Baird R W raised shares of Alamo Group from a "hold" rating to a "strong-buy" rating in a report on Monday, August 4th. Robert W. Baird raised shares of Alamo Group from a "neutral" rating to an "outperform" rating and raised their target price for the company from $209.00 to $260.00 in a report on Monday, August 4th. DA Davidson reaffirmed a "neutral" rating and issued a $225.00 target price on shares of Alamo Group in a report on Tuesday, July 22nd. Finally, Wall Street Zen cut shares of Alamo Group from a "buy" rating to a "hold" rating in a report on Saturday, July 26th.

About Alamo Group

Alamo Group Inc designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment. Its Vegetation Management Division segment offers hydraulically-powered and tractor - and off-road chassis mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts.