Alamo Group (NYSE:ALG) Shares Gap Up – Should You Buy?

Alamo Group, Inc. (NYSE:ALG) shares gapped up before the market opened on Tuesday . The stock had previously closed at $170.43, but opened at $180.52. Alamo Group shares last traded at $179.3460, with a volume of 7,967 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Wall Street Zen lowered shares of Alamo Group from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Alamo Group in a research report on Monday, December 29th. CJS Securities raised Alamo Group to a “strong-buy” rating in a research report on Thursday, December 11th. Zacks Research downgraded Alamo Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, November 13th. Finally, DA Davidson lowered their price target on Alamo Group from $225.00 to $190.00 and set a “neutral” rating for the company in a research note on Tuesday, November 11th. Two analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Alamo Group currently has a consensus rating of “Moderate Buy” and an average target price of $222.33.

Alamo Group Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 4.43 and a quick ratio of 2.72. The stock’s 50 day moving average price is $169.22 and its two-hundred day moving average price is $195.06. The firm has a market capitalization of $2.19 billion, a price-to-earnings ratio of 18.72, a PEG ratio of 0.95 and a beta of 1.12.

Alamo Group (NYSE:ALG) last posted its earnings results on Thursday, November 6th. The industrial products company reported $2.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.61 by ($0.27). The firm had revenue of $420.04 million during the quarter, compared to analyst estimates of $407.55 million. Alamo Group had a net margin of 7.20% and a return on equity of 11.11%. On average, equities research analysts anticipate that Alamo Group, Inc. will post 9.53 EPS for the current year.

Alamo Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 29th. Stockholders of record on Friday, January 16th will be paid a $0.34 dividend. The ex-dividend date is Friday, January 16th. This is a boost from Alamo Group’s previous quarterly dividend of $0.30. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.8%. Alamo Group’s dividend payout ratio is presently 12.45%.

Insiders Place Their Bets

In other Alamo Group news, CEO Robert Paul Hureau bought 304 shares of the stock in a transaction on Wednesday, November 26th. The shares were purchased at an average price of $163.48 per share, with a total value of $49,697.92. Following the acquisition, the chief executive officer directly owned 12,046 shares of the company’s stock, valued at $1,969,280.08. This represents a 2.59% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In the last ninety days, insiders purchased 1,058 shares of company stock worth $175,209. 1.18% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alamo Group

Several hedge funds and other institutional investors have recently modified their holdings of ALG. State of Alaska Department of Revenue lifted its holdings in shares of Alamo Group by 7.7% during the 2nd quarter. State of Alaska Department of Revenue now owns 6,188 shares of the industrial products company’s stock worth $1,350,000 after acquiring an additional 441 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH increased its stake in Alamo Group by 8.3% in the second quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 8,292 shares of the industrial products company’s stock valued at $1,811,000 after acquiring an additional 635 shares during the period. Jump Financial LLC raised its position in Alamo Group by 203.0% in the second quarter. Jump Financial LLC now owns 25,508 shares of the industrial products company’s stock worth $5,570,000 after purchasing an additional 17,089 shares in the last quarter. American Century Companies Inc. raised its position in Alamo Group by 201.6% in the second quarter. American Century Companies Inc. now owns 153,720 shares of the industrial products company’s stock worth $33,569,000 after purchasing an additional 102,751 shares in the last quarter. Finally, Vest Financial LLC lifted its stake in Alamo Group by 65.4% during the second quarter. Vest Financial LLC now owns 22,526 shares of the industrial products company’s stock worth $4,919,000 after purchasing an additional 8,910 shares during the period. Institutional investors and hedge funds own 92.36% of the company’s stock.

Alamo Group Company Profile

Alamo Group, Inc engages in the design, manufacture and marketing of equipment for vegetation management, roadside maintenance, agricultural harvesting and industrial applications. The company offers a broad portfolio of products, including boom mowers, flail mowers, rotary cutters, snow removal equipment, slurry seal machines, railcar movers and tow tractors. These offerings are distributed under a variety of brand names and through a network of independent dealerships and distributors, meeting the needs of municipalities, highway departments, agricultural producers and industrial operators.

The company operates through two primary segments: Agricultural and Industrial.