Alamo Group (NYSE:ALG) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of Alamo Group (NYSE:ALG) from a hold rating to a strong sell rating in a report released on Thursday,Zacks.com reports.

Several other research analysts also recently weighed in on ALG. DA Davidson lowered their price objective on shares of Alamo Group from $225.00 to $190.00 and set a “neutral” rating on the stock in a report on Tuesday, November 11th. CJS Securities raised shares of Alamo Group to a “strong-buy” rating in a research report on Thursday, December 11th. Wall Street Zen cut shares of Alamo Group from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Alamo Group in a report on Monday, December 29th. One equities research 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 issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $225.00.

Alamo Group Stock Performance

ALG stock opened at $168.34 on Thursday. The business’s 50-day moving average price is $194.76 and its two-hundred day moving average price is $188.05. Alamo Group has a 1-year low of $156.29 and a 1-year high of $233.29. The company has a current ratio of 4.57, a quick ratio of 2.72 and a debt-to-equity ratio of 0.17. The firm has a market cap of $2.04 billion, a PE ratio of 19.60, a P/E/G ratio of 1.01 and a beta of 1.11.

Alamo Group (NYSE:ALG) last announced its quarterly earnings data 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 analyst estimates of $405.18 million. As a group, research analysts forecast that Alamo Group will post 9.53 earnings per share for the current year.

Alamo Group Increases Dividend

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

Institutional Trading of Alamo Group

A number of hedge funds have recently bought and sold shares of the business. Wasatch Advisors LP bought a new position in Alamo Group in the 2nd quarter valued at $51,427,000. Vaughan Nelson Investment Management L.P. bought a new position in Alamo Group during the fourth quarter valued at about $39,213,000. Goldman Sachs Group Inc. raised its position in 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 worth $26,404,000 after acquiring an additional 110,941 shares during the period. American Century Companies Inc. boosted its stake 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 valued at $33,569,000 after acquiring an additional 102,751 shares during the last quarter. Finally, Tributary Capital Management LLC boosted its stake in 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 valued at $38,895,000 after acquiring an additional 97,898 shares during the last quarter. 92.36% of the stock is currently owned by institutional investors.

Trending Headlines about Alamo Group

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.