(ALTG) Alta Equipment - Ratings and Ratios

Alta Equipment Group Inc. is a multifaceted equipment dealership with a strong presence in the US and Canadian markets, operating through three distinct segments: Material Handling, Construction Equipment, and Master Distribution. The company provides a comprehensive range of services, including sales, rentals, and after-sales support for a diverse array of specialized equipment, catering to various industries such as manufacturing, construction, and waste management. With a history dating back to 1984, Alta Equipment Group has established itself as a significant player in the equipment dealership sector, with a headquarters in Livonia, Michigan.

From a market perspective, Alta Equipment Groups business model is characterized by its ability to generate revenue through multiple channels, including equipment sales, rentals, and after-sales services. The companys diversified product portfolio and service offerings enable it to maintain a strong presence across various sectors, reducing its dependence on any single industry. However, the companys financial performance has been impacted by the challenging market conditions, as reflected in its negative Return on Equity (RoE) of -57.05%. This suggests that the company is currently facing significant challenges in generating profits.

Analyzing the , we can observe that the stock has been trading below its 200-day Simple Moving Average (SMA) of $6.32, indicating a downtrend. The current price of $5.37 is closer to the 52-week low of $3.95 than the 52-week high of $10.79, suggesting a bearish sentiment. However, the Average True Range (ATR) of 0.38, representing a 7.15% volatility, indicates that the stock is experiencing significant price movements. Considering the , the companys Market Capitalization of $152.02M and a Forward P/E ratio of 222.22 suggest that the stock may be undervalued, presenting a potential buying opportunity for investors with a long-term perspective.

Based on the and , a potential forecast for Alta Equipment Group Inc. could be that the stock may continue to experience volatility in the short term, with potential support around the $4.49 SMA20 level. However, if the company can address its profitability concerns and improve its RoE, the stock may experience a rebound, potentially targeting the $6.32 SMA200 level. Investors should closely monitor the companys financial performance and industry trends to make informed decisions. A potential trading strategy could involve buying the stock at current levels, with a stop-loss around $4.00, and a target price of $6.50, representing a potential upside of 21%. However, this strategy is subject to significant risks and requires careful consideration of individual risk tolerance and investment goals.