Vanguard Group Inc. Raises Holdings in Alamo Group, Inc. $ALG

Key Points

• Vanguard Group increased its stake in Alamo Group by 1.6% in the fourth quarter, bringing its holdings to 798,234 shares valued at about $134 million. Institutional investors collectively own 92.36% of the company.
• Alamo Group shares were down 5.4% and traded near $154.89, close to the stock’s 52-week low. Despite the pullback, the company has a solid balance sheet with a debt-to-equity ratio of 0.23 and strong liquidity metrics.
• The company beat earnings expectations in its latest quarter, reporting $2.56 EPS on revenue of $417.15 million. Alamo also paid a quarterly dividend of $0.34 per share, while analysts currently rate the stock Moderate Buy with an average price target of $224.

Vanguard Group Inc. lifted its holdings in Alamo Group, Inc. (NYSE:ALG - Free Report) by 1.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 798,234 shares of the industrial products company's stock after buying an additional 12,499 shares during the quarter. Vanguard Group Inc. owned 6.59% of Alamo Group worth $134,000,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Jones Financial Companies Lllp lifted its holdings 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 acquiring an additional 314 shares during the period. MAI Capital Management acquired a new position in shares of Alamo Group during the 3rd quarter worth $73,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new position in shares of Alamo Group in the 2nd quarter valued at about $87,000. Globeflex Capital L P acquired a new stake in shares of Alamo Group in the second quarter valued at about $100,000. Finally, Tower Research Capital LLC TRC grew its position in Alamo Group by 152.4% during the second quarter. Tower Research Capital LLC TRC now owns 858 shares of the industrial products company's stock worth $187,000 after buying an additional 518 shares during the period. Institutional investors and hedge funds own 92.36% of the company's stock.

Alamo Group Trading Down 5.4%

NYSE ALG opened at $154.89 on Tuesday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 2.45 and a current ratio of 4.32. The firm has a market capitalization of $1.89 billion, a price-to-earnings ratio of 18.53, a PEG ratio of 0.96 and a beta of 1.17. The company's 50 day moving average price is $171.82 and its 200 day moving average price is $178.66. Alamo Group, Inc. has a one year low of $153.01 and a one year high of $233.29.

Alamo Group (NYSE:ALG - Get Free Report) last released its quarterly earnings data on Monday, May 4th. The industrial products company reported $2.56 EPS for the quarter, beating the consensus estimate of $2.20 by $0.36. The company had revenue of $417.15 million for the quarter, compared to analyst estimates of $398.02 million. Alamo Group had a return on equity of 9.71% and a net margin of 6.21%. On average, sell-side analysts predict that Alamo Group, Inc. will post 10.63 EPS for the current year.

Alamo Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 29th. Investors of record on Wednesday, April 15th were paid a dividend of $0.34 per share. The ex-dividend date was Wednesday, April 15th. This represents a $1.36 annualized dividend and a yield of 0.9%. Alamo Group's dividend payout ratio (DPR) is 16.27%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Alamo Group in a research note on Friday, March 27th. Zacks Research raised Alamo Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 5th. William Blair started coverage on Alamo Group in a research report on Monday, March 16th. They set an "outperform" rating for the company. Finally, DA Davidson reduced their price objective on Alamo Group from $190.00 to $188.00 and set a "neutral" rating on the stock in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $224.00.

Insiders Place Their Bets

In other Alamo Group news, CEO Robert Paul Hureau bought 460 shares of the stock in a transaction on Monday, March 9th. The stock was purchased at an average price of $164.40 per share, for a total transaction of $75,624.00. Following the completion of the purchase, the chief executive officer directly owned 12,506 shares in the company, valued at approximately $2,055,986.40. This trade represents a 3.82% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Nina C. Grooms sold 499 shares of Alamo Group stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $175.19, for a total transaction 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 trade represents a 14.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.06% of the stock is currently owned by corporate insiders.

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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