Insider Activity Report: Alamo Group (ALG)

Eric Etchart, a director at Alamo Group (ALG) recently bought 500 shares. The buy increased his stake by 5 percent, and came to a total purchase price of $88,295.

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  • This marks the first buy at the company since March 2022, when another director bought 500 shares. Since then, there have been about 10 sales, including sales from the company’s CFO and CEO. However, some of those sales were driven by the exercise of stock options.

    Overall, company insiders own 2.4 percent of shares.

    The mower and tractor manufacturer is up 37 percent over the past year, more than doubling the return of the S&P 500.

    Revenues rose 11 percent last year, and earnings grew by nearly 30 percent.

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  • Shares trade at 17 times earnings, a slight discount to the overall market, suggesting there could be more upside ahead. Plus, vegetation management tends to be a recession-resistant industry, so the company can likely perform steady even in an economic downturn.

    Action to take: The company is well positioned for further upside, given its reasonable growth and valuation here. Investors can buy shares and grab a 0.5 percent dividend yield at today’s prices.

    For traders, the current upside in shares is likely to continue. The December $200 calls, last going for about $1.75, could see mid-to-high double-digit returns from here, even if shares don’t move in-the-money.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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