Alta Equipment Group declares quarterly dividend

LIVONIA, Mich. - Alta Equipment Group Inc. (NYSE: NYSE:ALTG), a provider of material handling and construction equipment, has announced a quarterly dividend of $0.057 per share. Shareholders of record by November 15, 2024, will be eligible for the dividend, which is payable on November 29, 2024.

The company operates an extensive network of equipment dealerships across North America, offering sales, rentals, parts, and service support for a wide range of specialized equipment. This includes lift trucks, earthmoving machinery, environmental processing equipment, and more. Alta Equipment Group has been in the dealership business for 40 years and boasts over 85 locations spanning multiple U.S. states and Canadian provinces.

This dividend declaration follows Alta's tradition of providing returns to its shareholders and reflects the company's financial policies. The declared dividend is part of the company's commitment to delivering value to its investors, as it continues to serve a diverse customer base with its comprehensive product portfolio.

Alta Equipment Group's business model as a one-stop-shop for equipment needs is supported by its broad and industry-leading product offerings. The company emphasizes the strength of its branch network and the variety of equipment it provides, which caters to different sectors including construction, material handling, and environmental processing.

This dividend announcement is based on a press release statement from Alta Equipment Group. The company's performance and market activities can be followed by investors and interested parties through official financial disclosures and updates provided by Alta.

In other recent news, Alta Equipment Group has reported a rise in revenues to $488.1 million and an increase in adjusted EBITDA to $50.3 million in its second-quarter results of 2024. Despite challenges in the Construction Equipment sector, the company has seen profitable growth in its Material Handling segment, and record revenues in product support. Additionally, Alta has announced a partnership with Harbinger, marking its entry into the medium duty electric truck market.

DA Davidson, however, has lowered its price target for Alta Equipment Group from $20.00 to $12.00, while maintaining a Buy rating. The revised outlook is due to anticipated challenges in the demand and pricing for new and used equipment within the Construction Equipment sector, and a reduction in large machine purchases in the Material Handling division. Yet, the firm notes that Alta's product support revenue and margins are healthy, contributing positively as the fleet ages and demand continues to be robust.

Alta remains optimistic about growth opportunities, forecasting an adjusted EBITDA of $190 to $200 million for the full year. Despite a decline in the North American lift truck market, Alta has managed to increase its market share. These recent developments underscore the company's resilience amid market challenges and its strategic moves to explore new markets.

InvestingPro Insights

Alta Equipment Group's recent dividend announcement comes amid a challenging financial landscape for the company. According to InvestingPro data, Alta's market capitalization stands at $218.41 million, with a dividend yield of 3.45% as of the latest available information. This yield may be attractive to income-focused investors, especially considering the company's commitment to shareholder returns.

However, InvestingPro Tips highlight some concerns that investors should be aware of. The company is not profitable over the last twelve months, with a negative P/E ratio of -15.21. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. Additionally, the stock price has experienced significant volatility, with a 42.59% decline over the past six months.

On a more positive note, Alta Equipment Group has shown revenue growth of 11.3% over the last twelve months, reaching $1.92 billion. This growth suggests that the company's extensive network and diverse product offerings continue to generate sales despite challenging market conditions.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Alta Equipment Group, providing a deeper understanding of the company's financial health and market position.

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