What Are The Long Term Prospects of This Small Cap Stock-PLOW

Acrobull UK Advisory Services Ltd.

October 30

2024

Name	Ticker	Sector/Industry	Market Cap	Risk Factor
Douglas Dynamics, Inc.	PLOW-NYSE	Consumer Cyclical	$530.469 Million	Medium

Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment in North America. It operates through two segments, Work Truck Attachments and Work Truck Solutions.

Recent Highlights

Average Earnings- The company has reported earnings and they came out to be average with the company barely meeting expectations.

However, long term aspects of the company remain strong and we expect the company to report better financial results given the sector it operates in. Customers looking for long term stock may choose to invest in it.

Third Quarter 2024 Financial Highlights

The third quarter of 2024 had net sales of $129.4 million, down from $144.1 million during the same period the previous year. The drop is a result of lower volumes at Attachments due to the previous snow seasons' poor snowfall, which was somewhat mitigated by price realization at Solutions.

The third quarter gross profit for 2024 was $30.9 million, whereas the third quarter gross profit for 2023 was $32.1 million. Higher price realization and the effects of the 2024 Cost Savings Program caused the gross profit margin to rise 160 basis points to 23.9% in the third quarter of 2024 from 22.3% in the same period in 2023.

The company announced a $64.2 million sale and leaseback deal for seven assets on September 11, 2024. The revenues were mostly utilized to settle term loan debt, and the net gain was $42.3 million.

Stock Observation- The company stock earnings have been average, however long term aspects of the stock remain positive. The RSI level for the stock is at 24 which shows oversold conditions. However

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$22.97 USD
Acrobull Recommendation	Buy $21.90 USD
Target Price	$25.15 USD
RSI Level	14 Day RSI 24
Total Shares Outstanding	23.09 Million
Shares held by Insiders Risk Factor Stop Loss	2.88% Medium 5%