ALTG stock touches 52-week low at $4.4 amid market challenges

In a turbulent market environment, ALTG (Alta Equipment Group (NYSE:ALTG) Inc.) stock has reached a 52-week low, dipping to $4.4. According to InvestingPro data, the company carries a substantial debt burden of $1.2 billion, with a concerning debt-to-equity ratio of 15.6x. This price level reflects significant pressure on the company’s valuation, as investors respond to a complex blend of industry-specific headwinds and broader economic concerns. The equipment rental and sales company, with annual revenue of $1.88 billion, has faced a challenging year, with B Riley Principal A reporting a stark 1-year change, showing a decline of -64.91%. This substantial drop underscores the difficulties ALTG has encountered in maintaining its market position and investor confidence during a period marked by heightened volatility and shifting market dynamics. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available through their comprehensive Pro Research Report, which covers what really matters for over 1,400 US stocks.

In other recent news, Alta Equipment Group reported its fourth-quarter financial results for 2024, revealing a 4.5% year-over-year decline in revenue to $498.1 million, with full-year revenue remaining flat at $1.88 billion. The company also announced a decrease in adjusted EBITDA to $168.3 million for 2024, down from $201 million in 2023. DA Davidson adjusted its price target for Alta Equipment Group, lowering it to $9.00 from $11.00, while maintaining a Buy rating, reflecting the company’s recent financial performance and market conditions. The firm noted Alta’s manageable balance sheet leverage and emphasized the importance of debt reduction. Alta Equipment Group’s EBITDA guidance for 2025 is projected to be between $175 million and $190 million, suggesting modest growth amidst current market challenges. Despite mixed results in various sectors, the company anticipates a normalization of equipment supply by mid-2025. Alta’s strategic focus includes cost optimization and fleet electrification to enhance profitability. The company’s diversified business model and strategic initiatives aim to navigate ongoing market volatility.

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