Alamo Group (NYSE:ALG) Downgraded to Strong Sell Rating by Zacks Research

Alamo Group (NYSE:ALG) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday,Zacks.com reports.

ALG has been the subject of several other research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Alamo Group in a research report on Monday, December 29th. DA Davidson reduced their target price on Alamo Group from $225.00 to $190.00 and set a “neutral” rating for the company in a report on Tuesday, November 11th. Wall Street Zen downgraded Alamo Group from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Finally, CJS Securities upgraded Alamo Group to a “strong-buy” rating in a report on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Alamo Group currently has a consensus rating of “Hold” and an average price target of $225.00.

Alamo Group Price Performance

ALG opened at $168.34 on Thursday. Alamo Group has a 1 year low of $156.29 and a 1 year high of $233.29. The company has a debt-to-equity ratio of 0.17, a current ratio of 4.57 and a quick ratio of 2.72. The company has a market capitalization of $2.04 billion, a price-to-earnings ratio of 19.60, a P/E/G ratio of 1.04 and a beta of 1.11. The firm’s fifty day moving average price is $194.76 and its two-hundred day moving average price is $188.28.

Alamo Group (NYSE:ALG) last announced its earnings results on Monday, March 2nd. The industrial products company reported $1.70 EPS for the quarter, missing the consensus estimate of $2.06 by ($0.36). Alamo Group had a net margin of 6.47% and a return on equity of 10.04%. The firm had revenue of $373.65 million during the quarter, compared to analysts’ expectations of $405.18 million. As a group, analysts anticipate that Alamo Group will post 9.53 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Alamo Group

Institutional investors and hedge funds have recently modified their holdings of the company. Wasatch Advisors LP bought a new position in shares of Alamo Group in the second quarter valued at approximately $51,427,000. Vaughan Nelson Investment Management L.P. bought a new stake in Alamo Group during the 4th quarter worth approximately $39,213,000. Goldman Sachs Group Inc. lifted its stake in Alamo Group by 239.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 157,291 shares of the industrial products company’s stock worth $26,404,000 after purchasing an additional 110,941 shares in the last quarter. American Century Companies Inc. lifted its stake in Alamo Group by 201.6% in the 2nd 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, Tributary Capital Management LLC boosted its holdings in Alamo Group by 92.5% in the 3rd quarter. Tributary Capital Management LLC now owns 203,742 shares of the industrial products company’s stock valued at $38,895,000 after purchasing an additional 97,898 shares during the period. 92.36% of the stock is owned by hedge funds and other institutional investors.

Alamo Group News Roundup

Here are the key news stories impacting Alamo Group this week:

• Positive Sentiment: Balance sheet and liquidity remain healthy — Alamo reports a low debt/equity (~0.17) and strong current and quick ratios (current ~4.57, quick ~2.72), which supports cash flow stability and reduces refinancing risk during near‑term earnings volatility.
• Neutral Sentiment: Street expectations and valuation context — Consensus expectations still show multi‑year earnings in the mid/high single digits per share (consensus ~9.53 EPS for the current year) and the stock trades around a mid‑teens P/E (~19.6), so investors will be watching whether management can restore growth to match those multiples. MarketBeat ALG page
• Negative Sentiment: Q4 results missed expectations — Alamo reported Q4 EPS of $1.70 vs. analysts’ ~$2.06 estimate and revenue of $373.7M vs. ~$405.2M consensus, prompting the initial selloff as results implied softer demand/margin pressure. Earnings Summary Earnings Call Transcript
• Negative Sentiment: Analyst cuts followed — Sidoti trimmed numerous quarterly and full‑year EPS forecasts across 2026–2027 (multiple Qs and FY2026/FY2027 reductions), lowering near‑term earnings expectations and increasing pressure on the share price. Sidoti estimate changes (via MarketBeat)
• Negative Sentiment: Market reaction and headlines — Coverage highlighted the disappointing quarter and drove additional selling interest; short‑term momentum is negative until there’s evidence of revenue recovery or margin improvement. Article on price reaction

About Alamo Group

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.