Alamo Group's (ALG) Neutral Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed a Neutral rating on Alamo Group with a $190 price target, implying roughly a 13.1% upside from the current share price.
• Alamo Group missed Q1 estimates, reporting $1.70 EPS versus $2.06 expected and revenue of $373.65M versus $405.18M, with shares trading around $168.01.
• MarketBeat's consensus is a Moderate Buy with a $225 average target; institutional investors own about 92.36% of shares and the CEO recently bought stock, signaling insider confidence.

Alamo Group (NYSE:ALG - Get Free Report)'s stock had its "neutral" rating reiterated by analysts at DA Davidson in a report released on Wednesday,Benzinga reports. They currently have a $190.00 price target on the industrial products company's stock. DA Davidson's target price would suggest a potential upside of 13.09% from the stock's current price.

ALG has been the subject of several other reports. William Blair began coverage on Alamo Group in a research note on Monday, March 16th. They set an "outperform" rating for the company. Zacks Research downgraded Alamo Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, March 5th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Alamo Group in a research note on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Alamo Group currently has an average rating of "Moderate Buy" and a consensus price target of $225.00.

Alamo Group Stock Performance

Shares of Alamo Group stock traded down $0.76 on Wednesday, hitting $168.01. The stock had a trading volume of 164,437 shares, compared to its average volume of 138,673. Alamo Group has a 52-week low of $156.29 and a 52-week high of $233.29. The company has a current ratio of 4.57, a quick ratio of 2.82 and a debt-to-equity ratio of 0.17. The stock has a market cap of $2.04 billion, a price-to-earnings ratio of 19.57, a P/E/G ratio of 1.04 and a beta of 1.20. The company's 50 day moving average price is $178.21 and its 200 day moving average price is $179.50.

Alamo Group (NYSE:ALG - Get Free Report) last posted its quarterly earnings data on Monday, March 2nd. The industrial products company reported $1.70 EPS for the quarter, missing the consensus estimate of $2.06 by ($0.36). The company had revenue of $373.65 million for the quarter, compared to analysts' expectations of $405.18 million. Alamo Group had a net margin of 6.47% and a return on equity of 10.04%. On average, research analysts anticipate that Alamo Group will post 10.32 EPS for the current year.

Insiders Place Their Bets

In other Alamo Group news, Director Nina C. Grooms sold 499 shares of the business's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $175.19, for a total transaction of $87,419.81. Following the transaction, the director owned 2,844 shares in the company, valued at approximately $498,240.36. The trade was a 14.93% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Robert Paul Hureau bought 460 shares of the company's stock in a transaction on Monday, March 9th. The shares were acquired at an average price of $164.40 per share, for a total transaction of $75,624.00. Following the transaction, 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. The disclosure for this purchase is available in the SEC filing. 1.06% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alamo Group

A number of institutional investors and hedge funds have recently modified their holdings of ALG. Wasatch Advisors LP acquired a new stake in shares of Alamo Group in the 2nd quarter worth approximately $51,427,000. Vaughan Nelson Investment Management L.P. acquired a new stake in Alamo Group during the 4th quarter valued at $39,213,000. Goldman Sachs Group Inc. grew its holdings in Alamo Group by 239.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 157,291 shares of the industrial products company's stock valued at $26,404,000 after buying an additional 110,941 shares during the last quarter. Tributary Capital Management LLC grew its holdings in Alamo Group by 92.5% during the 3rd quarter. Tributary Capital Management LLC now owns 203,742 shares of the industrial products company's stock valued at $38,895,000 after buying an additional 97,898 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. grew its holdings in Alamo Group by 72.0% during the 4th 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 buying an additional 96,369 shares during 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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