Alamo Group (NYSE:ALG) Sees Large Volume Increase Following Earnings Beat

Key Points

• Earnings beat: Alamo Group reported Q earnings of $2.56 per share vs. $2.20 expected and revenue of $417.15M vs. $398.02M, and trading volume jumped ~150% to 354,301 shares after the report.
• Dividend announced: The company paid a quarterly dividend of $0.34 (annualized $1.36), yielding about 0.8% with a dividend payout ratio of 15.83%.
• Analyst and insider activity: MarketBeat shows a consensus "Moderate Buy" with an average price target of $225, while insiders recently traded (CEO bought 460 shares, an EVP sold 600), and insiders own about 1.06% of shares.

Shares of Alamo Group, Inc. (NYSE:ALG - Get Free Report) saw an uptick in trading volume on Tuesday after the company announced better than expected quarterly earnings. 354,301 shares traded hands during mid-day trading, an increase of 150% from the previous session's volume of 141,935 shares.The stock last traded at $171.4560 and had previously closed at $167.39.

The industrial products company reported $2.56 earnings per share for the quarter, topping the consensus estimate of $2.20 by $0.36. The business 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 Announces Dividend

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

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

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

Institutional Investors Weigh In On Alamo Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Natixis Advisors LLC boosted its holdings in shares of Alamo Group by 0.4% in the 3rd quarter. Natixis Advisors LLC now owns 15,926 shares of the industrial products company's stock worth $3,040,000 after purchasing an additional 61 shares during the period. Hudson Edge Investment Partners Inc. boosted its stake in Alamo Group by 1.5% during the third quarter. Hudson Edge Investment Partners Inc. now owns 4,372 shares of the industrial products company's stock worth $835,000 after buying an additional 65 shares during the period. PNC Financial Services Group Inc. increased its position in Alamo Group by 4.6% during the third quarter. PNC Financial Services Group Inc. now owns 1,649 shares of the industrial products company's stock valued at $315,000 after acquiring an additional 73 shares during the last quarter. Amalgamated Bank raised its stake in shares of Alamo Group by 3.2% in the third quarter. Amalgamated Bank now owns 3,054 shares of the industrial products company's stock valued at $583,000 after acquiring an additional 94 shares during the period. Finally, Oregon Public Employees Retirement Fund lifted its holdings in shares of Alamo Group by 4.2% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 2,472 shares of the industrial products company's stock worth $472,000 after acquiring an additional 100 shares during the last quarter. 92.36% of the stock is currently owned by hedge funds and other institutional investors.

Alamo Group Stock Performance

The stock has a market capitalization of $2.08 billion, a PE ratio of 19.94, a PEG ratio of 1.04 and a beta of 1.17. The business's 50 day moving average is $176.78 and its 200 day moving average is $179.33. 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 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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