Teacher Retirement System of Texas Grows Stock Position in Alamo Group, Inc. $ALG

Key Points

• Teacher Retirement System of Texas raised its stake in Alamo Group by 56.5% to 40,289 shares (an additional 14,545 shares) worth about $6.76 million, while other institutions (e.g., Wasatch, Vaughan Nelson, Allspring) increased or opened large positions, leaving institutional ownership at roughly 92.36%.
• Alamo Group missed quarterly expectations, reporting EPS of $1.70 versus the $2.06 consensus and revenue of $373.65 million versus $405.18 million; the company has a $2.09 billion market cap, a P/E of 20.05, and announced a quarterly dividend of $0.34 (annualized yield ~0.8%).
• Insiders have modestly sold shares (EVP sold 600 shares at ~$170.93; a director sold 499 shares), insiders own about 1.06% of the stock, and analysts' views are mixed but the consensus rating is a “Moderate Buy” with a $225 average price target.

Teacher Retirement System of Texas raised its position in Alamo Group, Inc. (NYSE:ALG - Free Report) by 56.5% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 40,289 shares of the industrial products company's stock after purchasing an additional 14,545 shares during the quarter. Teacher Retirement System of Texas owned 0.33% of Alamo Group worth $6,763,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of ALG. Wasatch Advisors LP purchased a new position in shares of Alamo Group in the 2nd quarter worth about $51,427,000. Vaughan Nelson Investment Management L.P. purchased a new position in shares of Alamo Group in the 4th quarter worth about $39,213,000. Tributary Capital Management LLC raised its holdings in shares of Alamo Group by 92.5% in the 3rd quarter. Tributary Capital Management LLC now owns 203,742 shares of the industrial products company's stock worth $38,895,000 after purchasing an additional 97,898 shares during the period. American Century Companies Inc. raised its holdings in shares of Alamo Group by 49.9% in the 3rd quarter. American Century Companies Inc. now owns 230,351 shares of the industrial products company's stock worth $43,974,000 after purchasing an additional 76,631 shares during the period. Finally, Allspring Global Investments Holdings LLC raised its holdings in shares of Alamo Group by 9.4% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 666,327 shares of the industrial products company's stock worth $113,562,000 after purchasing an additional 57,456 shares during the period. 92.36% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Alamo Group news, EVP Edward Rizzuti sold 600 shares of the firm's stock in a transaction that occurred on Tuesday, March 24th. The stock was sold at an average price of $170.93, for a total transaction of $102,558.00. Following the completion of the sale, the executive vice president owned 10,857 shares in the company, valued at $1,855,787.01. This trade represents a 5.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Nina C. Grooms sold 499 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $175.19, for a total value of $87,419.81. Following the sale, the director owned 2,844 shares of the company's stock, valued at approximately $498,240.36. This trade represents a 14.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.06% of the company's stock.

Alamo Group Price Performance

ALG stock opened at $172.23 on Monday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.82 and a current ratio of 4.57. Alamo Group, Inc. has a 1 year low of $156.29 and a 1 year high of $233.29. The firm has a market cap of $2.09 billion, a P/E ratio of 20.05, a price-to-earnings-growth ratio of 1.04 and a beta of 1.20. The stock has a 50-day simple moving average of $179.78 and a 200-day simple moving average of $179.68.

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

Alamo Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Stockholders of record on Wednesday, April 15th will be paid a $0.34 dividend. The ex-dividend date is Wednesday, April 15th. 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 15.83%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on ALG. William Blair began coverage on Alamo Group in a report on Monday, March 16th. They issued an "outperform" rating on the stock. DA Davidson restated a "neutral" rating and issued a $190.00 price objective on shares of Alamo Group in a report on Monday, March 9th. Zacks Research downgraded Alamo Group from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Alamo Group in a report on Friday, March 27th. One investment 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $225.00.

About Alamo Group

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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