Alamo Group (NYSE:ALG) Posts Earnings Results, Beats Estimates By $0.36 EPS

Key Points

• EPS beat: Alamo Group reported Q1 EPS of $2.56, beating estimates by $0.36, with revenue of $417.15 million versus the $398.02 million consensus; return on equity was 10.04% and net margin 6.47%.
• Market reaction and valuation: Shares fell about 2.1% to $167.76 midday despite the beat; the company has a market cap of $2.03 billion and a P/E of 19.53.
• Dividend and insider activity: Alamo declared a quarterly dividend of $0.34 (annualized $1.36, yield ~0.8%), while insiders showed mixed activity—an EVP sold 600 shares and the CEO purchased 460 shares—and institutions own roughly 92.36% of the stock.

Alamo Group (NYSE:ALG - Get Free Report) announced its quarterly earnings data on Monday. The industrial products company reported $2.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.20 by $0.36, FiscalAI reports. The company had revenue of $417.15 million during the quarter, compared to the consensus estimate of $398.02 million. Alamo Group had a return on equity of 10.04% and a net margin of 6.47%.

Alamo Group Trading Down 2.1%

NYSE:ALG traded down $3.59 during midday trading on Monday, hitting $167.76. 132,969 shares of the company traded hands, compared to its average volume of 139,858. The firm's fifty day moving average is $176.78 and its 200-day moving average is $179.33. Alamo Group has a 12-month low of $156.29 and a 12-month high of $233.29. The firm has a market capitalization of $2.03 billion, a P/E ratio of 19.53, a P/E/G ratio of 1.04 and a beta of 1.17. The company has a current ratio of 4.57, a quick ratio of 2.82 and a debt-to-equity ratio of 0.17.

Alamo Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 29th. Investors of record on Wednesday, April 15th were issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 0.8%. The ex-dividend date was Wednesday, April 15th. Alamo Group's dividend payout ratio is presently 15.83%.

Insider Activity at Alamo Group

In related news, EVP Edward Rizzuti sold 600 shares of the stock in a transaction on Tuesday, March 24th. The stock was sold at an average price of $170.93, for a total transaction of $102,558.00. Following the sale, the executive vice president owned 10,857 shares in the company, valued at approximately $1,855,787.01. This represents a 5.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Robert Paul Hureau purchased 460 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The shares were bought at an average price of $164.40 per share, for a total transaction of $75,624.00. Following the acquisition, the chief executive officer directly owned 12,506 shares in the company, valued at $2,055,986.40. This trade represents a 3.82% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.06% of the stock is currently owned by insiders.

Institutional Trading of Alamo Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Natixis Advisors LLC raised its holdings in Alamo Group by 0.4% during the 3rd quarter. Natixis Advisors LLC now owns 15,926 shares of the industrial products company's stock valued at $3,040,000 after buying an additional 61 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Alamo Group by 0.5% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 24,970 shares of the industrial products company's stock valued at $4,192,000 after buying an additional 117 shares during the period. Advisors Asset Management Inc. raised its holdings in Alamo Group by 7.5% during the 4th quarter. Advisors Asset Management Inc. now owns 1,935 shares of the industrial products company's stock valued at $325,000 after buying an additional 135 shares during the period. Captrust Financial Advisors raised its holdings in Alamo Group by 4.5% during the 2nd quarter. Captrust Financial Advisors now owns 3,215 shares of the industrial products company's stock valued at $702,000 after buying an additional 138 shares during the period. Finally, California State Teachers Retirement System increased its stake in Alamo Group by 1.5% in the second quarter. California State Teachers Retirement System now owns 9,484 shares of the industrial products company's stock worth $2,071,000 after purchasing an additional 140 shares during the period. Hedge funds and other institutional investors own 92.36% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ALG. William Blair began coverage on Alamo Group in a research note on Monday, March 16th. They set an "outperform" rating for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Alamo Group in a research note on Friday, March 27th. Zacks Research downgraded Alamo Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 5th. Finally, DA Davidson reiterated a "neutral" rating and set a $190.00 price objective on shares of Alamo Group in a research note on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $225.00.

About Alamo Group

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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