Alamo Group, Inc. (NYSE:ALG) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate Alamo Group “Moderate Buy” overall: Of five analysts, three recommend holding the stock, one recommends buying it, and one gives it a strong-buy rating. The average 12-month price target is $188, compared with the reported opening price of $162.57.
• Alamo Group exceeded quarterly expectations, reporting $2.82 in EPS versus the $2.74 consensus and revenue of $450.73 million versus $437.48 million expected. Analysts project full-year EPS of $10.52.
• The company declared a quarterly dividend of $0.34, equivalent to $1.36 annually and a 0.8% yield. Institutional investors own 92.36% of outstanding shares, while an executive recently sold 2,715 shares.

Shares of Alamo Group, Inc. (NYSE:ALG - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the five analysts that are presently covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation, one has given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $188.00.

ALG has been the subject of several research analyst reports. DA Davidson reaffirmed a "neutral" rating and issued a $188.00 price objective on shares of Alamo Group in a report on Wednesday, July 1st. Weiss Ratings lowered shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday.

Alamo Group Price Performance

ALG opened at $162.57 on Tuesday. The firm has a market cap of $1.98 billion, a PE ratio of 19.49, a P/E/G ratio of 0.96 and a beta of 1.08. The stock has a 50-day moving average price of $164.85 and a 200-day moving average price of $163.41. Alamo Group has a 1 year low of $145.76 and a 1 year high of $219.88. The company has a debt-to-equity ratio of 0.22, a current ratio of 4.39 and a quick ratio of 2.48.

Alamo Group (NYSE:ALG - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The industrial products company reported $2.82 EPS for the quarter, beating the consensus estimate of $2.74 by $0.08. The company 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 predict that Alamo Group will post 10.52 earnings per share for the current fiscal year.

Alamo Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Stockholders of record on Thursday, October 15th will be paid a $0.34 dividend. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.8%. Alamo Group's dividend payout ratio is 16.31%.

Insider Activity at Alamo Group

In other Alamo Group news, EVP Edward Rizzuti sold 2,715 shares of the firm's stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $164.41, for a total transaction of $446,373.15. Following the completion of the transaction, the executive vice president owned 8,142 shares in the company, valued at $1,338,626.22. This trade represents a 25.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 1.06% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alamo Group

Hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC purchased a new stake in Alamo Group in the second quarter worth $25,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Alamo Group during the second quarter valued at $25,000. Global Retirement Partners LLC purchased a new stake in shares of Alamo Group during the second quarter valued at $35,000. Nykredit A S bought a new position in shares of Alamo Group in the second quarter worth about $99,000. Finally, Quantbot Technologies LP bought a new position in shares of Alamo Group in the second quarter worth about $178,000. Hedge funds and other institutional investors own 92.36% of the company's stock.

About Alamo Group

Alamo Group Inc NYSE: ALG is an industrial equipment manufacturer that designs, produces and services equipment used in vegetation management, infrastructure maintenance and agricultural applications. The company serves municipalities, government agencies, contractors, utility companies, agricultural operators and other commercial customers.

Its product portfolio includes mowing and brush-cutting equipment, roadside and right-of-way maintenance machinery, tree-care equipment, excavators, street sweepers, snow-removal equipment and agricultural implements.

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