Legato Capital Management LLC Trims Stock Position in Alamo Group, Inc. $ALG

Legato Capital Management LLC decreased its stake in Alamo Group, Inc. (NYSE:ALG) by 60.9% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,557 shares of the industrial products company’s stock after selling 7,088 shares during the quarter. Legato Capital Management LLC’s holdings in Alamo Group were worth $870,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Wasatch Advisors LP acquired a new position in Alamo Group in the second quarter valued at approximately $51,427,000. American Century Companies Inc. increased its holdings in shares of Alamo Group by 201.6% during the 2nd quarter. American Century Companies Inc. now owns 153,720 shares of the industrial products company’s stock valued at $33,569,000 after purchasing an additional 102,751 shares in the last quarter. Tributary Capital Management LLC lifted its stake 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 purchasing an additional 97,898 shares during the period. First Trust Advisors LP boosted its holdings in Alamo Group by 28.6% during the second quarter. First Trust Advisors LP now owns 384,190 shares of the industrial products company’s stock worth $83,899,000 after buying an additional 85,478 shares in the last quarter. Finally, River Road Asset Management LLC purchased a new stake in Alamo Group during the second quarter worth $10,222,000. 92.36% of the stock is owned by institutional investors and hedge funds.

Alamo Group News Summary

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

• Positive Sentiment: Closed acquisition and strong cash position — Alamo completed the purchase of Petersen Industries (grapple equipment for bulky-waste) in January and reported cash of ~$309.7M versus total debt of $205.7M, giving it a net cash position that supports M&A and operational flexibility. ALAMO GROUP ANNOUNCES FINANCIAL RESULTS
• Neutral Sentiment: Operational actions and full-year context — Management says 2025 was a transition year, highlighting manufacturing footprint optimization and a focus on long-term margin improvement; FY2025 sales were roughly flat vs. 2024 and adjusted EBITDA conversion to cash was strong. These are long-cycle positives but not immediate upside drivers. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 results missed consensus — Q4 adjusted EPS came in at $1.70 vs. the $2.06 consensus and revenue was $373.7M vs. ~$405M expected. The topline and EPS shortfalls are the primary reason investors sold the stock. Alamo Group posts disappointing Q4 results
• Negative Sentiment: Year-over-year contraction in quarterly earnings and margin pressure — EPS declined vs. prior year ($2.39 a year ago) and adjusted EBITDA margin for the quarter was 12.0% of sales, signaling margin compression that investors dislike in a capital goods company. Alamo Group Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Market reaction and technicals: heavier trading and downside vs. near-term moving averages — News outlets report the stock traded with higher volume after the print and moved below the 50-day average, amplifying the selloff as short-term technicals turned negative. Alamo Group earnings & market reaction

Alamo Group Stock Down 15.4%

ALG stock opened at $184.82 on Wednesday. Alamo Group, Inc. has a 52 week low of $156.29 and a 52 week high of $233.29. The company has a quick ratio of 2.72, a current ratio of 4.43 and a debt-to-equity ratio of 0.17. The firm has a 50-day simple moving average of $194.79 and a 200-day simple moving average of $188.85. The stock has a market capitalization of $2.24 billion, a P/E ratio of 21.52, a P/E/G ratio of 1.22 and a beta of 1.11.

Alamo Group (NYSE:ALG) last posted its quarterly earnings data on Monday, March 2nd. The industrial products company reported $1.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.06 by ($0.36). Alamo Group had a return on equity of 10.15% and a net margin of 6.47%.The firm had revenue of $373.65 million during the quarter, compared to analyst estimates of $405.18 million. Equities analysts forecast that Alamo Group, Inc. 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. Stockholders of record on Friday, January 16th were paid a $0.34 dividend. This is a boost from Alamo Group’s previous quarterly dividend of $0.30. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, January 16th. Alamo Group’s dividend payout ratio is presently 14.11%.

Analysts Set New Price Targets

A number of research firms have weighed in on ALG. CJS Securities raised shares of Alamo Group to a “strong-buy” rating in a report on Thursday, December 11th. Zacks Research raised shares of Alamo Group from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. DA Davidson cut their price target on Alamo Group from $225.00 to $190.00 and set a “neutral” rating for the company in a research note on Tuesday, November 11th. Wall Street Zen cut Alamo Group from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Alamo Group in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $225.00.

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.