DA Davidson Has Lowered Expectations for Alamo Group (NYSE:ALG) Stock Price

Key Points

• DA Davidson trimmed its price target on Alamo Group from $190 to $188 and kept a neutral rating, implying about 22% upside from the prior close.
• Despite the analyst caution, Alamo Group beat earnings expectations in its latest quarterly report, posting $2.56 EPS versus $2.20 expected and revenue of $417.15 million versus $398.02 million forecast.
• The stock fell 5.9% on Monday to $154.10, near its 52-week low, even as institutional ownership remains high at 92.36%.

Alamo Group (NYSE:ALG - Get Free Report) had its price target lowered by stock analysts at DA Davidson from $190.00 to $188.00 in a research note issued on Monday,Benzinga reports. The firm currently has a "neutral" rating on the industrial products company's stock. DA Davidson's price objective would indicate a potential upside of 22.00% from the company's previous close.

Several other research analysts have also commented on ALG. Weiss Ratings restated a "hold (c)" rating on shares of Alamo Group in a research report on Friday, March 27th. William Blair began coverage on Alamo Group in a research note on Monday, March 16th. They set an "outperform" rating on the stock. Finally, Zacks Research raised Alamo Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Alamo Group has an average rating of "Moderate Buy" and a consensus target price of $224.00.

Alamo Group Trading Down 5.9%

ALG traded down $9.66 during trading hours on Monday, reaching $154.10. The company's stock had a trading volume of 132,271 shares, compared to its average volume of 149,108. The stock has a market cap of $1.88 billion, a PE ratio of 18.48, a P/E/G ratio of 0.96 and a beta of 1.17. Alamo Group has a fifty-two week low of $153.85 and a fifty-two week high of $233.29. The company has a debt-to-equity ratio of 0.23, a current ratio of 4.32 and a quick ratio of 2.45. The business's 50-day moving average is $174.04 and its 200-day moving average is $179.02.

Alamo Group (NYSE:ALG - Get Free Report) last posted its earnings results on Monday, May 4th. The industrial products company reported $2.56 EPS for the quarter, beating analysts' consensus estimates of $2.20 by $0.36. The company had revenue of $417.15 million for the quarter, compared to the consensus estimate of $398.02 million. Alamo Group had a return on equity of 9.71% and a net margin of 6.21%. As a group, equities research analysts predict that Alamo Group will post 10.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Nina C. Grooms sold 499 shares of the company'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 value of $87,419.81. Following the completion of the transaction, the director directly owned 2,844 shares of the company's stock, valued at $498,240.36. This represents a 14.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Robert Paul Hureau bought 460 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were acquired at an average price of $164.40 per share, with a total value of $75,624.00. Following the purchase, the chief executive officer directly owned 12,506 shares of the company's stock, valued at approximately $2,055,986.40. This trade 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

A number of institutional investors have recently modified their holdings of ALG. Global Retirement Partners LLC raised its position in Alamo Group by 136.2% during the 4th quarter. Global Retirement Partners LLC now owns 307 shares of the industrial products company's stock worth $52,000 after buying an additional 177 shares during the last quarter. Jones Financial Companies Lllp lifted its position in Alamo Group by 3,140.0% in the first quarter. Jones Financial Companies Lllp now owns 324 shares of the industrial products company's stock valued at $58,000 after purchasing an additional 314 shares during the period. MAI Capital Management purchased a new stake in Alamo Group in the 3rd quarter valued at approximately $73,000. Kestra Advisory Services LLC purchased a new stake in Alamo Group in the 4th quarter valued at approximately $76,000. Finally, State of Wyoming raised its stake in shares of Alamo Group by 76.5% during the 4th quarter. State of Wyoming now owns 473 shares of the industrial products company's stock worth $79,000 after buying an additional 205 shares in 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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