Alamo Group (NYSE:ALG) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Alamo Group from “hold” to “strong sell.” Despite the downgrade, analysts’ overall consensus rating remains “Hold,” with an average price target of $188.
• Alamo Group missed quarterly expectations, reporting EPS of $2.06 versus the $2.62 consensus and revenue of $403.14 million versus estimates of $437.11 million. Sidoti also cut its earnings estimates for multiple upcoming quarters and fiscal years.
• Shares were down 2.0% and opened at $133.81, near the stock’s 52-week low of $133.32.

Alamo Group (NYSE:ALG - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Thursday, Zacks reports.

Separately, Weiss Ratings lowered shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $188.00.

Alamo Group Stock Down 2.0%

Shares of NYSE ALG opened at $133.81 on Thursday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.48 and a current ratio of 4.39. The company has a market capitalization of $1.63 billion, a P/E ratio of 16.71, a price-to-earnings-growth ratio of 0.91 and a beta of 1.08. Alamo Group has a 52-week low of $133.32 and a 52-week high of $219.88. The company's 50 day moving average price is $157.49 and its 200-day moving average price is $167.86.

Alamo Group (NYSE:ALG - Get Free Report) last released its earnings results on Monday, November 2nd. The industrial products company reported $2.06 EPS for the quarter, missing analysts' consensus estimates of $2.62 by ($0.56). Alamo Group had a return on equity of 9.47% and a net margin of 4.72%. The company had revenue of $403.14 million during the quarter, compared to analyst estimates of $437.11 million. Equities analysts forecast that Alamo Group will post 9.90 earnings per share for the current year.

Insider Activity

In other Alamo Group news, EVP Edward Rizzuti sold 2,537 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $174.68, for a total transaction of $443,163.16. Following the transaction, the executive vice president directly owned 5,605 shares of the company's stock, valued at $979,081.40. This represents a 31.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 1.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alamo Group

Several large investors have recently added to or reduced their stakes in the stock. Fifth Third Bancorp raised its stake in shares of Alamo Group by 51.4% during the 3rd quarter. Fifth Third Bancorp now owns 19,083 shares of the industrial products company's stock worth $2,954,000 after buying an additional 6,482 shares in the last quarter. Maryland State Retirement & Pension System boosted its holdings in shares of Alamo Group by 50.2% during the 3rd quarter. Maryland State Retirement & Pension System now owns 2,358 shares of the industrial products company's stock valued at $365,000 after buying an additional 788 shares in the last quarter. Fulcrum Asset Management LLP bought a new position in shares of Alamo Group during the third quarter valued at approximately $58,000. Parallel Advisors LLC grew its holdings in shares of Alamo Group by 378.9% during the third quarter. Parallel Advisors LLC now owns 728 shares of the industrial products company's stock worth $113,000 after buying an additional 576 shares in the last quarter. Finally, Commonwealth Equity Services LLC purchased a new position in shares of Alamo Group during the 3rd quarter worth approximately $1,162,000. 92.36% of the stock is owned by institutional investors.

Alamo Group News Roundup

Here are the key news stories impacting Alamo Group this week:

• Negative Sentiment: Sidoti cut its FY2026 EPS estimate to $9.58 from $10.44 and its FY2027 estimate to $10.53 from $11.93, indicating a weaker earnings outlook. Alamo Group analyst estimate reports
• Negative Sentiment: The firm also reduced estimates for multiple quarters: Q4 2026 to $2.14 from $2.43; Q1 2027 to $2.46 from $2.71; Q2 2027 to $2.92 from $3.31; Q3 2027 to $2.65 from $3.11; and Q4 2027 to $2.50 from $2.80. The repeated downgrades suggest softer expected earnings momentum.
• Neutral Sentiment: Sidoti’s FY2028 EPS estimate is $11.19, above the stated current-year consensus of $10.52, pointing to potential longer-term earnings growth, though it does not offset the nearer-term estimate reductions.

About Alamo Group

Alamo Group Inc NYSE: ALG manufactures equipment used in the maintenance of infrastructure, vegetation, and agricultural land. Its products are primarily sold to municipalities, government agencies, contractors, utility companies, transportation departments, and agricultural customers.

The company's product portfolio includes mowing and vegetation-management equipment, street sweepers, snow-removal equipment, vacuum trucks, excavators, agricultural implements, and other specialized machinery.

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