Alamo Group Shares Surpass Analyst Target Price of $194.00
Recently, shares of Alamo Group, Inc. (Symbol: ALG) have outperformed the average analyst 12-month price target of $194.00, trading at $199.76 per share. When a stock meets its analyst-set target, the analyst typically has two options: downgrade the stock’s valuation or adjust the target price upward. Analysts may also consider recent developments in the company’s fundamentals that could have driven the stock price higher. If the company’s outlook is improving, raising the target price could be logical.
Analyst Target Diversity and Impact
Within Zacks’ coverage universe, there are three analysts contributing to Alamo Group’s average target price. However, this average only represents a mathematical mean. Some analysts have lower price targets, with one setting a target at $177.00, while another analyst aims as high as $210.00. The standard deviation within this set is $16.522.
Why Average Targets Matter
The reason for focusing on the average target price of ALG is to harness collective insights, aggregating contributions from various analysts rather than relying on a single expert’s perspective. Now that ALG has passed the average target price of $194.00 per share, investors face an important decision. They must assess if the stock is heading towards an even higher target or if the current valuation is too stretched, prompting a review of their positions.
Current Analyst Ratings for Alamo Group
| Recent ALG Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 2 | 2 | 2 | 4 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 1 | 1 | 1 | 0 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.67 | 1.67 | 1.67 | 1.0 |
The average rating shown above ranges from 1 to 5, with 1 representing a Strong Buy and 5 indicating a Strong Sell. This analysis is based on information from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
