Alamo Group, Inc. (NYSE:ALG) Short Interest Update

Alamo Group, Inc. (NYSE:ALG) was the recipient of a significant decrease in short interest in March. As of March 13th, there was short interest totaling 494,209 shares, a decrease of 12.8% from the February 26th total of 567,031 shares. Based on an average daily trading volume, of 207,200 shares, the days-to-cover ratio is presently 2.4 days. Currently, 4.1% of the company’s stock are sold short.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Alamo Group in a research note on Friday. CJS Securities upgraded Alamo Group to a “strong-buy” rating in a report on Thursday, December 11th. Zacks Research cut shares of Alamo Group from a “hold” rating to a “strong sell” rating in a report on Thursday, March 5th. William Blair began coverage on shares of Alamo Group in a research report on Monday, March 16th. They issued an “outperform” rating on the stock. Finally, DA Davidson reaffirmed a “neutral” rating and issued a $190.00 price target on shares of Alamo Group in a report on Monday, March 9th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $225.00.

Alamo Group Price Performance

Shares of NYSE:ALG opened at $164.68 on Tuesday. The company has a current ratio of 4.57, a quick ratio of 2.82 and a debt-to-equity ratio of 0.17. Alamo Group has a 1 year low of $156.29 and a 1 year high of $233.29. The business has a fifty day simple moving average of $190.25 and a 200 day simple moving average of $182.89. The firm has a market cap of $2.00 billion, a price-to-earnings ratio of 19.17, a P/E/G ratio of 1.01 and a beta of 1.10.

Alamo Group (NYSE:ALG) last issued its earnings results on Monday, March 2nd. The industrial products company reported $1.70 EPS for the quarter, missing analysts’ consensus estimates 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, sell-side analysts predict that Alamo Group will post 9.53 earnings per share for the current fiscal year.

Alamo Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 29th. Investors of record on Friday, January 16th were paid a $0.34 dividend. This represents a $1.36 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, January 16th. This is a positive change from Alamo Group’s previous quarterly dividend of $0.30. Alamo Group’s dividend payout ratio (DPR) is presently 15.83%.

Insider Activity

In other Alamo Group news, 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 value of $87,419.81. Following the transaction, the director owned 2,844 shares of the company’s stock, valued at $498,240.36. This trade represents a 14.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Edward Rizzuti sold 600 shares of the business’s stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $170.93, for a total value of $102,558.00. Following the transaction, the executive vice president owned 10,857 shares of the company’s stock, valued at $1,855,787.01. This represents a 5.24% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.06% of the company’s stock.

Hedge Funds Weigh In On Alamo Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wasatch Advisors LP acquired a new stake in shares of Alamo Group in the second quarter worth $51,427,000. Vaughan Nelson Investment Management L.P. acquired a new stake in shares of Alamo Group in the fourth quarter valued at about $39,213,000. Goldman Sachs Group Inc. grew its position in shares of Alamo Group by 239.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 157,291 shares of the industrial products company’s stock valued at $26,404,000 after purchasing an additional 110,941 shares during the last quarter. Tributary Capital Management LLC increased its stake in shares of Alamo Group by 92.5% in the third quarter. Tributary Capital Management LLC now owns 203,742 shares of the industrial products company’s stock worth $38,895,000 after purchasing an additional 97,898 shares during the period. Finally, T. Rowe Price Investment Management Inc. increased its stake in shares of Alamo Group by 72.0% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 230,180 shares of the industrial products company’s stock worth $38,641,000 after purchasing an additional 96,369 shares during the period. Institutional investors own 92.36% of the company’s stock.

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.