Checking the True Picture for Alamo Group Inc. (ALG)

On Wednesday, shares of Alamo Group Inc. (NYSE:ALG) marked $112.18 per share versus a previous $113.09 closing price. With having a -0.80% loss, an insight into the fundamental values of Alamo Group Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. ALG showed a fall of -10.65% within its YTD performance, with highs and lows between $70.99 – $132.96 during the period of 52 weeks, compared to the simple moving average of 4.17% in the period of the last 200 days.

Dougherty & Company equity researchers changed the status of Alamo Group Inc. (NYSE: ALG) shares from “Neutral” to a “Buy” rating in the report published on May 1st, 2020. Other analysts, including Dougherty & Company, also published their reports on ALG shares. Dougherty & Company repeated the rating from the previous report, marking ALG under “Neutral” rating, in the report published on August 27th, 2019. Additionally, ALG shares got another “Buy” rating from Sidoti. On March 28th, 2016, Piper Jaffray Reiterated an Overweight rating and increased its price target from $69 to $68. On the other hand, Seaport Global Securities Downgrade the “Neutral” rating for ALG shares, as published in the report on November 6th, 2015. BofA/Merrill seems to be going bullish on the price of ALG shares, based on the price prediction for ALG. Another “Buy” rating came from Global Hunter Securities, providing a prediction for price target according to the report published in November 18th, 2014.

Alamo Group Inc. (ALG) Analysis

The present dividend yield for ALG owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Alamo Group Inc., the company needs to provide a healthy cash flow, currently at the value of 11.93. In addition, the growth of sales from quarter to quarter is recording -5.80%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Alamo Group Inc. (ALG) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 9.80% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 2.40 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while ALG is currently recording an average of 54.18K in volumes. The volatility of the stock on monthly basis is set at 3.44%, while the weekly volatility levels are marked at 3.25%with 3.08% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $129.44, indicating growth from the present price of $112.18, which can represent yet another valuable research and analysis points that can help you decide whether to invest in ALG or pass.

What to Look for When Analyzing Alamo Group Inc. Shares?

Alamo Group Inc. (ALG) is based in the USA and it represents one of the well-known company operating with Industrials sector. If you wish to compare ALG shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 23.90 for Alamo Group Inc., while the value 17.22 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 4.69 is supported by the yearly EPS growth of -10.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 3.00%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 95.50% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in ALG Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in ALG in the recent period. That is how Longview Asset Management LLC now has an increase position in ALG by 0.00% in the first quarter, owning 1.36 million shares of ALG stocks, with the value of $139.78 million after the purchase of an additional 0 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in ALG shares changed 1.06% in the first quarter, which means that the company now owns 644354 shares of company, all valued at $66.14 million after the acquisition of additional 6,752 shares during the last quarter.

Vaughan Nelson Investment Managem acquired a new position in Alamo Group Inc. during the first quarter, with the value of $35.05 million, and SSgA Funds Management, Inc. increased their stake in the company’s shares by 4.42% in the first quarter, now owning 12,611 shares valued at $30.61 million after the acquisition of the additional 298210 shares during the last quarter. At the present, 95.50% of ALG shares are in the ownership of institutional investors.