Alamo Group, Inc. (NYSE:ALG) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Alamo Group, with three hold ratings, one buy, and one strong buy. The average 12-month price target is $188, above the reported share price of $167.01.
• Alamo Group exceeded quarterly expectations, reporting earnings per share of $2.82 versus the $2.74 consensus and revenue of $450.73 million versus estimates of $437.48 million.
• Institutional investors and hedge funds own 92.36% of the company, while an executive recently sold 2,715 shares. The company also pays a quarterly dividend of $0.34 per share, yielding approximately 0.8% annually.

Shares of Alamo Group, Inc. (NYSE:ALG - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the five brokerages that are covering the stock, Marketbeat.com reports. Three analysts have rated the stock with a hold recommendation, one has assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $188.00.

A number of equities research analysts have weighed in on ALG shares. DA Davidson reaffirmed a "neutral" rating and set a $188.00 price objective on shares of Alamo Group in a report on Wednesday, July 1st. Weiss Ratings raised Alamo Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, September 4th.

Insider Activity

In other news, EVP Edward Rizzuti sold 2,715 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $164.41, for a total value of $446,373.15. Following the sale, the executive vice president owned 8,142 shares of the company's stock, valued at approximately $1,338,626.22. This represents a 25.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.06% of the company's stock.

Hedge Funds Weigh In On Alamo Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. NewEdge Advisors LLC acquired a new stake in shares of Alamo Group during the second quarter worth approximately $25,000. Integrated Wealth Concepts LLC acquired a new position in shares of Alamo Group in the 2nd quarter worth approximately $25,000. Global Retirement Partners LLC bought a new stake in Alamo Group during the 2nd quarter worth approximately $35,000. Jones Financial Companies Lllp grew its position in Alamo Group by 3,140.0% during the 1st quarter. Jones Financial Companies Lllp now owns 324 shares of the industrial products company's stock worth $58,000 after acquiring an additional 314 shares during the last quarter. Finally, Kestra Advisory Services LLC acquired a new stake in Alamo Group during the 4th quarter valued at $76,000. 92.36% of the stock is currently owned by institutional investors and hedge funds.

Alamo Group Stock Performance

Shares of NYSE ALG opened at $167.01 on Friday. The business has a fifty day simple moving average of $165.15 and a 200 day simple moving average of $166.29. The company has a current ratio of 4.39, a quick ratio of 2.48 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $2.03 billion, a price-to-earnings ratio of 20.03, a PEG ratio of 1.02 and a beta of 1.09. Alamo Group has a one year low of $145.76 and a one year high of $219.88.

Alamo Group (NYSE:ALG - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The industrial products company reported $2.82 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.08. The firm had revenue of $450.73 million for the quarter, compared to the consensus estimate of $437.48 million. Alamo Group had a net margin of 6.08% and a return on equity of 9.83%. Sell-side analysts expect that Alamo Group will post 10.56 EPS for the current year.

Alamo Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 29th. Shareholders of record on Thursday, July 16th were issued a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, July 16th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.8%. Alamo Group's dividend payout ratio (DPR) is presently 16.31%.

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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