Alamo Group (NYSE:ALG) Sees Large Volume Increase Following Earnings Beat

Shares of Alamo Group, Inc. (NYSE:ALG) saw strong trading volume on Tuesday following a stronger than expected earnings report. 354,301 shares were traded during mid-day trading, an increase of 150% from the previous session’s volume of 141,935 shares.The stock last traded at $171.4560 and had previously closed at $167.39.

The industrial products company reported $2.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.20 by $0.36. Alamo Group had a return on equity of 10.04% and a net margin of 6.47%.The business had revenue of $417.15 million during the quarter, compared to analyst estimates of $398.02 million.

Alamo Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 29th. Shareholders of record on Wednesday, April 15th were paid a $0.34 dividend. The ex-dividend date was Wednesday, April 15th. This represents a $1.36 dividend on an annualized basis and a yield of 0.8%. Alamo Group’s dividend payout ratio (DPR) is presently 15.83%.

Wall Street Analysts Forecast Growth

ALG has been the subject of a number of recent analyst reports. Zacks Research lowered shares of Alamo Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, March 5th. William Blair started coverage on shares of Alamo Group in a research note on Monday, March 16th. They issued an “outperform” rating on the stock. Weiss Ratings restated a “hold (c)” rating on shares of Alamo Group in a research note on Friday, March 27th. Finally, DA Davidson reaffirmed a “neutral” rating and set a $190.00 price target on shares of Alamo Group in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Alamo Group has a consensus rating of “Moderate Buy” and an average target price of $225.00.

Insider Activity at Alamo Group

In other Alamo Group news, CEO Robert Paul Hureau bought 460 shares of the company’s stock in a transaction on Monday, March 9th. The shares were bought at an average cost of $164.40 per share, for a total transaction of $75,624.00. Following the acquisition, the chief executive officer directly owned 12,506 shares in the company, valued at approximately $2,055,986.40. The trade was a 3.82% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Nina C. Grooms sold 499 shares of the firm’s stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $175.19, for a total transaction of $87,419.81. Following the transaction, the director directly owned 2,844 shares in the company, valued at $498,240.36. This trade represents a 14.93% decrease in their position. The SEC filing for this sale provides additional information. 1.06% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alamo Group

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Wasatch Advisors LP purchased a new position in Alamo Group during 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 valued at $39,213,000. Goldman Sachs Group Inc. boosted its position in Alamo Group by 239.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 157,291 shares of the industrial products company’s stock valued at $26,404,000 after acquiring an additional 110,941 shares in the last quarter. Tributary Capital Management LLC increased its holdings in shares of 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 acquiring an additional 97,898 shares during the period. Finally, T. Rowe Price Investment Management Inc. increased its holdings in shares of Alamo Group by 72.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 230,180 shares of the industrial products company’s stock valued at $38,641,000 after acquiring an additional 96,369 shares during the period. 92.36% of the stock is currently owned by institutional investors.

Alamo Group Trading Up 2.3%

The company has a current ratio of 4.57, a quick ratio of 2.82 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $2.08 billion, a P/E ratio of 19.94, a price-to-earnings-growth ratio of 1.04 and a beta of 1.17. The company has a 50-day moving average price of $176.78 and a 200 day moving average price of $179.33.

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.