Zacks Investment Research Downgrades Deere & Company (DE) to Sell

Deere & Company (NYSE:DE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday, Zacks.com reports.

According to Zacks, “For fiscal 2019, Deere projects net sales growth of 7% year over year and net income of $3.6 billion. However, results will bear the brunt of higher costs for raw materials and logistics. Also, elevated expenses due to investments in precision agriculture as well as next-generation product development programs will likely impact margins. The implementation of tariffs and apprehensions regarding stretched out U.S-China trade talks weighed on farmers’ sentiment. Even though the United States Department of Agriculture (“USDA”) expects net farm income to rise 10% to $69.4 billion in 2019, it lagged the 10-year U.S. net farm income average by a wide margin. This weak forecast, along with lower commodity prices, signals continued constrained demand for agricultural equipment in North America, which will likely impact Deere’s results. Also, drought in Europe, weak growth in Argentina and elevated expenses remain concerns.”

Other equities research analysts also recently issued research reports about the company. Argus upped their price objective on Deere & Company to $175.00 and gave the company a “buy” rating in a report on Wednesday, February 20th. DZ Bank downgraded Deere & Company from a “buy” rating to a “hold” rating in a report on Tuesday, February 19th. OTR Global upgraded Deere & Company to a “positive” rating in a report on Friday, January 18th. Credit Suisse Group dropped their price objective on Deere & Company from $211.00 to $209.00 and set an “outperform” rating for the company in a report on Tuesday, February 19th. Finally, Bank of America downgraded Deere & Company from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $173.00 to $170.00 in a report on Wednesday, February 13th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and thirteen have given a buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $176.73.

Shares of DE stock traded down $0.19 on Wednesday, reaching $164.37. 19,750 shares of the stock were exchanged, compared to its average volume of 1,468,486. The company has a market cap of $52.41 billion, a P/E ratio of 17.50, a PEG ratio of 1.71 and a beta of 0.90. Deere & Company has a one year low of $128.32 and a one year high of $167.82. The company has a quick ratio of 1.68, a current ratio of 1.98 and a debt-to-equity ratio of 2.46.

Deere & Company (NYSE:DE) last released its earnings results on Friday, February 15th. The industrial products company reported $1.54 earnings per share for the quarter, missing analysts’ consensus estimates of $1.76 by ($0.22). The firm had revenue of $6.94 billion for the quarter, compared to the consensus estimate of $6.83 billion. Deere & Company had a return on equity of 28.83% and a net margin of 8.85%. The company’s revenue was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.31 EPS. As a group, equities research analysts anticipate that Deere & Company will post 11.17 earnings per share for the current fiscal year.

In other Deere & Company news, insider John C. May II sold 11,661 shares of the stock in a transaction dated Thursday, January 17th. The stock was sold at an average price of $160.21, for a total value of $1,868,208.81. Following the completion of the sale, the insider now directly owns 55,743 shares in the company, valued at $8,930,586.03. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.71% of the stock is owned by corporate insiders.

Several institutional investors have recently made changes to their positions in DE. Culbertson A N & Co. Inc. boosted its position in shares of Deere & Company by 2.2% during the first quarter. Culbertson A N & Co. Inc. now owns 20,870 shares of the industrial products company’s stock worth $3,336,000 after buying an additional 440 shares during the period. Prime Capital Investment Advisors LLC boosted its position in shares of Deere & Company by 52.8% during the first quarter. Prime Capital Investment Advisors LLC now owns 29,050 shares of the industrial products company’s stock worth $4,643,000 after buying an additional 10,041 shares during the period. Meeder Asset Management Inc. acquired a new position in shares of Deere & Company during the first quarter worth about $368,000. BTIM Corp. boosted its position in shares of Deere & Company by 5.1% during the first quarter. BTIM Corp. now owns 189,366 shares of the industrial products company’s stock worth $30,268,000 after buying an additional 9,251 shares during the period. Finally, Cambridge Advisors Inc. acquired a new position in shares of Deere & Company during the first quarter worth about $204,000. Institutional investors own 68.25% of the company’s stock.

Deere & Company Company Profile

Deere & Company manufactures and distributes various equipment worldwide. The company operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agriculture and Turf segment offers agriculture and turf equipment, and related parts, including large, medium, and utility tractors; tractor loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; harvesting front-end equipment; sugarcane loaders and pull-behind scrapers; and tillage, seeding, and application equipment.

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