Alamo Group (NYSE:ALG) Sets New 1-Year Low - Here's Why

Key Points

• Alamo Group shares hit a new 52-week low, trading as low as $145.30 and closing around $144.99, down 0.9% on the session.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $188.00; the company also exceeded quarterly earnings and revenue expectations.
• Alamo Group declared a quarterly dividend of $0.34 per share, equivalent to an annualized $1.36 payout and a 0.9% yield.

Alamo Group, Inc. (NYSE:ALG - Get Free Report)'s share price reached a new 52-week low during trading on Friday. The company traded as low as $145.30 and last traded at $144.99, with a volume of 28,746 shares changing hands. The stock had previously closed at $147.23.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on ALG shares. DA Davidson reissued 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 cut shares of Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Alamo Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $188.00.

Alamo Group Trading Down 0.9%

The firm has a market capitalization of $1.78 billion, a price-to-earnings ratio of 17.51, a PEG ratio of 0.88 and a beta of 1.08. The company has a fifty day moving average price of $161.75 and a two-hundred day moving average price of $162.11. The company has a current ratio of 4.39, a quick ratio of 2.48 and a debt-to-equity ratio of 0.22.

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

Alamo Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Thursday, October 15th will be given a dividend of $0.34 per share. The ex-dividend date is Thursday, October 15th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.9%. Alamo Group's dividend payout ratio (DPR) is currently 16.31%.

Insider Activity

In other news, EVP Edward Rizzuti sold 2,537 shares of the company's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $174.68, for a total transaction of $443,163.16. Following the sale, the executive vice president owned 5,605 shares of the company's stock, valued at approximately $979,081.40. This represents a 31.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.06% of the company's stock.

Institutional Investors Weigh In On Alamo Group

Institutional investors have recently modified their holdings of the company. Fifth Third Wealth Advisors LLC acquired a new position in shares of Alamo Group in the 3rd quarter valued at $544,000. Axxcess Wealth Management LLC acquired a new stake in Alamo Group during the 3rd quarter worth $227,000. Quadrant Capital Group LLC lifted its position in Alamo Group by 9.6% in the third quarter. Quadrant Capital Group LLC now owns 2,410 shares of the industrial products company's stock valued at $374,000 after acquiring an additional 211 shares during the last quarter. Fortitude Family Office LLC boosted its stake in Alamo Group by 9,760.0% in the third quarter. Fortitude Family Office LLC now owns 493 shares of the industrial products company's stock valued at $76,000 after acquiring an additional 488 shares in the last quarter. Finally, GAMMA Investing LLC boosted its stake in Alamo Group by 183.3% in the third quarter. GAMMA Investing LLC now owns 170 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 110 shares in the last quarter. 92.36% of the stock is owned by hedge funds and other institutional investors.

Alamo Group Company Profile

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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