Alamo Group (NYSE:ALG) Shares Gap Down Following Weak Earnings

Key Points

• Alamo Group shares opened sharply lower after the company reported quarterly earnings of $2.06 per share, missing analyst expectations of $2.62, while revenue of $403.14 million also fell short of the $437.11 million consensus.
• The company maintained its quarterly dividend at $0.34 per share, equivalent to $1.36 annually and a 0.9% yield, with a payout ratio of 16.31%.
• Analyst sentiment remains cautiously positive, with an average “Moderate Buy” rating and a $188 price target, although Weiss Ratings downgraded the stock and an executive recently reduced his holdings by 31.16%.

Alamo Group, Inc. (NYSE:ALG - Get Free Report) shares gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $147.76, but opened at $133.32. Alamo Group shares last traded at $150.3850, with a volume of 11,295 shares traded.

The industrial products company reported $2.06 earnings per share for the quarter, missing the consensus estimate of $2.62 by ($0.56). The company had revenue of $403.14 million for the quarter, compared to analysts' expectations of $437.11 million. Alamo Group had a return on equity of 9.83% and a net margin of 6.08%.

Alamo Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 28th. Stockholders of record on Thursday, October 15th were given a $0.34 dividend. The ex-dividend date of this dividend was Thursday, October 15th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.9%. Alamo Group's payout ratio is currently 16.31%.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded Alamo Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Alamo Group presently has an average rating of "Moderate Buy" and an average price target of $188.00.

Insiders Place Their Bets

In other Alamo Group news, EVP Edward Rizzuti sold 2,537 shares of Alamo Group stock in a transaction that occurred 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 directly owned 5,605 shares in the company, valued at $979,081.40. The trade was a 31.16% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Alamo Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Alamo Group in the second quarter worth $288,972,000. Jupiter Topco LLC bought a new position in shares of Alamo Group in the 2nd quarter worth about $28,617,000. Copeland Capital Management LLC boosted its holdings in shares of 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 valued at $29,936,000 after buying an additional 118,737 shares during the period. Bank of America Corp DE acquired a new position in shares of Alamo Group in the 2nd quarter valued at about $17,437,000. Finally, Neumeier Poma Investment Counsel LLC acquired a new position in shares of Alamo Group in the 2nd quarter valued at about $13,404,290. Institutional investors own 92.36% of the company's stock.

Alamo Group Trading Down 1.7%

The company has a current ratio of 4.39, a quick ratio of 2.48 and a debt-to-equity ratio of 0.22. The business's 50-day moving average is $159.34 and its two-hundred day moving average is $168.87. The firm has a market cap of $1.83 billion, a P/E ratio of 18.00, a P/E/G ratio of 0.86 and a beta of 1.08.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.