Is Alamo Group, Inc. (NYSE:ALG) a good investment?
At the moment, there are a multitude of methods shareholders can use to analyze Mr. Market. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top fund managers can outperform their index-focused peers by a superb margin (see just how much). Just as useful, bullish insider trading sentiment is another way to look at the world of equities. Obviously, there are lots of reasons for an upper level exec to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this tactic if you know where to look (learn more here). What’s more, it’s important to examine the latest info surrounding Alamo Group, Inc. (NYSE:ALG).
How are hedge funds trading Alamo Group, Inc. (NYSE:ALG)?
At the end of the second quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -22% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes meaningfully.
When using filings from the hedgies we track, Longview Asset Management, managed by James A. Star, holds the most valuable position in Alamo Group, Inc. (NYSE:ALG). Longview Asset Management has a $69.4 million position in the stock, comprising 2.2% of its 13F portfolio. On Longview Asset Management’s heels is Royce & Associates, managed by Chuck Royce, which held a $50.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Martin Whitman’s Third Avenue Management, Jim Simons’s Renaissance Technologies and Joel Greenblatt’s Gotham Asset Management.
Judging by the fact that Alamo Group, Inc. (NYSE:ALG) has faced bearish sentiment from the top-tier hedge fund industry, it’s safe to say that there was a specific group of hedgies that elected to cut their entire stakes at the end of the second quarter. Interestingly, Israel Englander’s Millennium Management cut the biggest investment of the 450+ funds we track, comprising about $0.9 million in stock, and Neil Chriss of Hutchin Hill Capital was right behind this move, as the fund cut about $0.3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 2 funds at the end of the second quarter.
What have insiders been doing with Alamo Group, Inc. (NYSE:ALG)?
Bullish insider trading is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time frame, Alamo Group, Inc. (NYSE:ALG) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here). We’ll also take a look at the relationship between both of these indicators in other stocks similar to Alamo Group, Inc. (NYSE:ALG). These stocks are Lindsay Corporation (NYSE:LNN), Astec Industries, Inc. (NASDAQ:ASTE), Cascade Corporation (NYSE:CASC), NACCO Industries, Inc. (NYSE:NC), and Columbus McKinnon Corp. (NASDAQ:CMCO). This group of stocks belong to the farm & construction machinery industry and their market caps are closest to ALG’s market cap.