Alamo Group (NYSE:ALG) Reaches New 12-Month Low - What's Next?

Key Points

• Alamo Group shares hit a new 52-week low of $143.00 during trading, well below the 50-day and 200-day moving averages of $160.15 and $169.45, respectively.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an $188 price target, despite mixed individual rating changes.
• The company beat quarterly expectations with adjusted EPS of $2.82 versus $2.74 expected and revenue of $450.73 million; it also paid a quarterly dividend of $0.34, yielding about 0.9%.

Alamo Group, Inc. (NYSE:ALG - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $143.00 and last traded at $143.4270, with a volume of 10,702 shares trading hands. The stock had previously closed at $144.29.

Analyst Ratings Changes

Several brokerages have recently issued reports on ALG. DA Davidson reiterated a "neutral" rating and issued a $188.00 price target on shares of Alamo Group in a research note on Wednesday, July 1st. Weiss Ratings downgraded shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $188.00.

Alamo Group Trading Up 1.3%

The company has a market cap of $1.78 billion, a P/E ratio of 17.46, a PEG ratio of 0.87 and a beta of 1.08. The company has a quick ratio of 2.48, a current ratio of 4.39 and a debt-to-equity ratio of 0.22. The firm's 50 day moving average is $160.15 and its two-hundred day moving average is $169.45.

Alamo Group (NYSE:ALG - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The industrial products company reported $2.82 EPS for the quarter, beating analysts' consensus estimates of $2.74 by $0.08. The firm had revenue of $450.73 million for the quarter, compared to analyst estimates of $437.48 million. Alamo Group had a return on equity of 9.83% and a net margin of 6.08%. As a group, equities research analysts anticipate that Alamo Group, Inc. will post 10.52 EPS for the current year.

Alamo Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Thursday, October 15th were issued a $0.34 dividend. The ex-dividend date was Thursday, October 15th. This represents a $1.36 annualized dividend and a yield of 0.9%. Alamo Group's payout ratio is presently 16.31%.

Insiders Place Their Bets

In other news, EVP Edward Rizzuti sold 2,537 shares of Alamo Group stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $174.68, for a total value of $443,163.16. Following the completion of the transaction, the executive vice president directly owned 5,605 shares of the company's stock, valued at approximately $979,081.40. This trade represents a 31.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.06% of the company's stock.

Institutional Trading of Alamo Group

Several large investors have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in shares of Alamo Group in the 2nd quarter worth $288,972,000. Dimensional Fund Advisors LP boosted its holdings in Alamo Group by 5.5% during the first quarter. Dimensional Fund Advisors LP now owns 527,399 shares of the industrial products company's stock worth $87,006,000 after purchasing an additional 27,597 shares during the last quarter. First Trust Advisors LP boosted its holdings in Alamo Group by 5.4% during the first quarter. First Trust Advisors LP now owns 469,289 shares of the industrial products company's stock worth $77,419,000 after purchasing an additional 24,184 shares during the last quarter. Copeland Capital Management LLC grew its position in Alamo Group by 189.3% in the 1st quarter. Copeland Capital Management LLC now owns 181,465 shares of the industrial products company's stock worth $29,936,000 after purchasing an additional 118,737 shares in the last quarter. Finally, Jupiter Topco LLC bought a new stake in Alamo Group in the 2nd quarter worth about $28,617,000. Institutional investors and hedge funds own 92.36% of the company's stock.

About Alamo Group

Alamo Group Inc NYSE: ALG manufactures equipment used in the maintenance of infrastructure, vegetation, and agricultural land. Its products are primarily sold to municipalities, government agencies, contractors, utility companies, transportation departments, and agricultural customers.

The company's product portfolio includes mowing and vegetation-management equipment, street sweepers, snow-removal equipment, vacuum trucks, excavators, agricultural implements, and other specialized machinery.

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