Alamo Group (NYSE:ALG) Sets New 1-Year Low - Time to Sell?

Key Points

• Alamo Group shares hit a new 52-week low on Monday, falling to as low as $145.76 before last trading at $148.74, down from the prior close of $151.98.
• Despite the weak share price, the company beat earnings and revenue estimates in its latest quarter, reporting EPS of $2.56 versus $2.20 expected and revenue of $417.15 million versus $398.02 million forecast.
• Wall Street sentiment remains mixed but generally constructive: analysts currently rate the stock a Moderate Buy on average, with a consensus price target of $224, while the firm also recently paid a quarterly dividend of $0.34 per share.

Alamo Group, Inc. (NYSE:ALG - Get Free Report) shares reached a new 52-week low during trading on Monday . The stock traded as low as $145.76 and last traded at $148.74, with a volume of 947 shares. The stock had previously closed at $151.98.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on ALG. Zacks Research upgraded Alamo Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 5th. William Blair began coverage on Alamo Group in a report on Monday, March 16th. They issued an "outperform" rating on the stock. DA Davidson cut their price target on Alamo Group from $190.00 to $188.00 and set a "neutral" rating on the stock in a report on Monday, May 11th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Alamo Group in a report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have assigned a Hold 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 $224.00.

Alamo Group Trading Up 0.7%

The company has a debt-to-equity ratio of 0.23, a quick ratio of 2.45 and a current ratio of 4.32. The company has a 50 day simple moving average of $167.98 and a two-hundred day simple moving average of $177.64. The firm has a market cap of $1.80 billion, a PE ratio of 17.69, a P/E/G ratio of 0.87 and a beta of 1.17.

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

Alamo Group Announces Dividend

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

Insiders Place Their Bets

In other Alamo Group news, EVP Edward Rizzuti sold 600 shares of the business's stock in a transaction that occurred 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 completion of the sale, the executive vice president directly owned 10,857 shares in the company, valued at approximately $1,855,787.01. The trade was a 5.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Robert Paul Hureau acquired 460 shares of the business's stock in a transaction on Monday, March 9th. The shares were purchased at an average price of $164.40 per share, with a total value of $75,624.00. Following the completion of the purchase, the chief executive officer owned 12,506 shares in the company, valued at $2,055,986.40. This represents a 3.82% increase in their position. The SEC filing for this purchase provides additional information. 1.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Quantinno Capital Management LP lifted its stake in Alamo Group by 18.9% during the first quarter. Quantinno Capital Management LP now owns 5,113 shares of the industrial products company's stock worth $844,000 after purchasing an additional 814 shares in the last quarter. Dean Capital Management increased its position in shares of Alamo Group by 159.0% during the first quarter. Dean Capital Management now owns 16,747 shares of the industrial products company's stock worth $2,763,000 after acquiring an additional 10,282 shares during the period. Punch & Associates Investment Management Inc. increased its position in shares of Alamo Group by 1.4% during the first quarter. Punch & Associates Investment Management Inc. now owns 70,937 shares of the industrial products company's stock worth $11,702,000 after acquiring an additional 1,013 shares during the period. Renaissance Technologies LLC increased its position in shares of Alamo Group by 583.3% during the first quarter. Renaissance Technologies LLC now owns 16,400 shares of the industrial products company's stock worth $2,706,000 after acquiring an additional 14,000 shares during the period. Finally, Inceptionr LLC purchased a new stake in shares of Alamo Group during the first quarter worth $668,000. 92.36% of the stock is currently owned by institutional investors and hedge funds.

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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