Alamo Group (NYSE:ALG) Trading 8.5% Higher – Should You Buy?

Alamo Group Inc. (NYSE:ALG)’s stock price shot up 8.5% during mid-day trading on Friday . The company traded as high as $183.94 and last traded at $183.94. 8,387 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 73,973 shares. The stock had previously closed at $169.54.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on ALG shares. StockNews.com lowered Alamo Group from a “buy” rating to a “hold” rating in a report on Wednesday, July 17th. DA Davidson upped their price objective on Alamo Group from $209.00 to $219.00 and gave the stock a “buy” rating in a research note on Wednesday, August 28th. Finally, Robert W. Baird decreased their target price on shares of Alamo Group from $223.00 to $217.00 and set an “outperform” rating for the company in a research note on Friday, August 2nd.

Alamo Group Price Performance

The company has a quick ratio of 2.52, a current ratio of 4.37 and a debt-to-equity ratio of 0.28. The business has a fifty day moving average of $177.14 and a 200 day moving average of $182.34. The firm has a market cap of $2.25 billion, a P/E ratio of 16.05 and a beta of 1.06.

Alamo Group (NYSE:ALG) last posted its earnings results on Wednesday, July 31st. The industrial products company reported $2.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.44). The company had revenue of $416.30 million for the quarter. Alamo Group had a return on equity of 13.51% and a net margin of 7.56%. During the same period in the previous year, the company posted $3.03 EPS. On average, sell-side analysts anticipate that Alamo Group Inc. will post 10.23 earnings per share for the current year.

Alamo Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, October 28th. Stockholders of record on Tuesday, October 15th were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.56%. The ex-dividend date was Tuesday, October 15th. Alamo Group’s dividend payout ratio (DPR) is presently 9.85%.

Insiders Place Their Bets

In other Alamo Group news, EVP Richard Hodges Raborn sold 300 shares of Alamo Group stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $181.28, for a total transaction of $54,384.00. Following the transaction, the executive vice president now directly owns 11,061 shares of the company’s stock, valued at approximately $2,005,138.08. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, EVP Richard Hodges Raborn sold 300 shares of Alamo Group stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $181.28, for a total value of $54,384.00. Following the completion of the transaction, the executive vice president now directly owns 11,061 shares of the company’s stock, valued at approximately $2,005,138.08. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Edward Rizzuti sold 322 shares of the company’s stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $178.29, for a total value of $57,409.38. Following the sale, the executive vice president now owns 7,765 shares in the company, valued at approximately $1,384,421.85. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of ALG. Vanguard Group Inc. grew its holdings in Alamo Group by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 759,699 shares of the industrial products company’s stock worth $159,681,000 after purchasing an additional 7,121 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in shares of Alamo Group by 7.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 641,902 shares of the industrial products company’s stock valued at $115,626,000 after acquiring an additional 45,422 shares in the last quarter. Victory Capital Management Inc. raised its holdings in Alamo Group by 9.4% during the second quarter. Victory Capital Management Inc. now owns 386,638 shares of the industrial products company’s stock worth $66,888,000 after buying an additional 33,190 shares during the last quarter. Vaughan Nelson Investment Management L.P. lifted its position in Alamo Group by 16.3% in the 2nd quarter. Vaughan Nelson Investment Management L.P. now owns 372,938 shares of the industrial products company’s stock valued at $64,518,000 after acquiring an additional 52,250 shares in the last quarter. Finally, Westwood Holdings Group Inc. boosted its position in shares of Alamo Group by 17.1% during the second quarter. Westwood Holdings Group Inc. now owns 344,713 shares of the industrial products company’s stock valued at $59,635,000 after buying an additional 50,327 shares during the last quarter. Institutional investors and hedge funds own 92.36% of the company’s stock.

About Alamo Group

Alamo Group Inc designs, manufactures, distributes, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural uses worldwide. It operates through two segments, Vegetation Management and Industrial Equipment. Its Vegetation Management Division segment offers hydraulically-powered and tractor – and off-road chassis mounted mowers, other cutters and replacement parts for heavy-duty and intensive uses and heavy duty, tractor- and truck-mounted mowing and vegetation maintenance equipment, and replacement parts.