Alamo Group (NYSE:ALG) Shares Gap Down on Disappointing Earnings

Alamo Group, Inc. (NYSE:ALG)’s share price gapped down prior to trading 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 EPS 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 the consensus estimate of $437.11 million. Alamo Group had a net margin of 6.08% and a return on equity of 9.83%.

Alamo Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 28th. Investors of record on Thursday, October 15th were paid a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Thursday, October 15th. Alamo Group’s dividend payout ratio is presently 16.31%.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered 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 issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $188.00.

Insiders Place Their Bets

In other Alamo Group news, EVP Edward Rizzuti sold 2,537 shares of the business’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $174.68, for a total transaction 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 $979,081.40. The trade was a 31.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alamo Group

Several large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Alamo Group during the second quarter valued at approximately $288,972,000. Dimensional Fund Advisors LP grew its holdings in Alamo Group by 5.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 527,399 shares of the industrial products company’s stock worth $87,006,000 after buying an additional 27,597 shares in the last quarter. First Trust Advisors LP grew its holdings in Alamo Group by 5.4% in the 1st quarter. First Trust Advisors LP now owns 469,289 shares of the industrial products company’s stock worth $77,419,000 after buying an additional 24,184 shares in the last quarter. Copeland Capital Management LLC increased 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 valued at $29,936,000 after acquiring an additional 118,737 shares during the period. Finally, Jupiter Topco LLC acquired a new stake in Alamo Group in the 2nd quarter valued at approximately $28,617,000. Institutional investors and hedge funds own 92.36% of the company’s stock.

Alamo Group Stock Down 1.7%

The firm has a 50 day simple moving average of $159.34 and a two-hundred day simple moving average of $168.87. The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.48 and a current ratio of 4.39. The stock 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.

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.