Alamo Group's 15min chart triggers Bollinger Bands expanding downward, bearish Marubozu.

Alamo Group's 15-minute chart has triggered a downward expansion of Bollinger Bands, accompanied by a bearish Marubozu candlestick pattern at 12:00 PM on August 14, 2025. This suggests that the market trend is currently being driven by a strong selling pressure, indicating that sellers are in control of the market. As a result, it is likely that bearish momentum will continue.

Alamo Group Inc (NYSE:ALG) reported its second-quarter earnings on August 7, 2025, showcasing a mix of positive and negative results. The company's Industrial Equipment division achieved record net sales of $240.7 million, representing a 17.6% organic growth compared to the second quarter of 2024. Net income for the second quarter increased by almost 10% year-over-year, driven by stronger operating results. Interest expense decreased by $2.4 million compared to the same period in 2024, due to significantly lower debt levels. The company completed a strategic acquisition of Ringomatic, which is expected to accelerate growth in the equipment rental business [1].

However, the Vegetation Management division reported a 15.7% reduction in net sales compared to the second quarter of 2024. The division's operating margin declined by 50 basis points to 7.1% of net sales. Sales of governmental mowers declined in Europe compared to the second quarter of 2024. The company faces ongoing headwinds in the agricultural sector, with commodity pricing still not favorable. Labor constraints are becoming a concern again, similar to the situation during the pandemic [1].

Technical analysis of Alamo Group's 15-minute chart indicates that the stock price may be overvalued. The Relative Strength Index (RSI) has reached an overbought level, suggesting that the stock price has risen too rapidly and may be unsupported by fundamentals. Additionally, a bearish Marubozu candlestick pattern is present, indicating that sellers are in control of the market and that bearish momentum is likely to continue [2].

On August 14, 2025, at 12:00 PM, Alamo Group's 15-minute chart triggered a downward expansion of Bollinger Bands, accompanied by the bearish Marubozu candlestick pattern. This suggests that the market trend is currently being driven by strong selling pressure, indicating that sellers are in control of the market. As a result, it is likely that bearish momentum will continue [2].

Analysts at Baird have upgraded Alamo Group Inc to Outperform, citing early signs of stabilization in key end markets and meaningful earnings growth potential into 2026. The analyst highlighted improving conditions in the vegetation and industrial segments, including a rebound in hay and alfalfa prices and a slowdown in dealer destocking [2].

In conclusion, while Alamo Group Inc reported mixed results in its second-quarter earnings, the company's strategic acquisitions and cost-cutting measures are positioning it for future growth. However, the current technical indicators suggest that the stock price may be overvalued and that bearish momentum could continue. Investors should closely monitor the company's progress and the broader market conditions.

References:
[1] https://finance.yahoo.com/news/alamo-group-inc-alg-q2-150207625.html
[2] https://www.ainvest.com/news/alamo-group-15min-chart-rsi-overbought-bearish-marubozu-signal-2508/