Deere & Company (NYSE:DE) Shares Gap Down on Disappointing Earnings

Deere & Company (NYSE:DE – Get Rating)’s stock price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $367.99, but opened at $344.36. Deere & Company shares last traded at $358.00, with a volume of 20,978 shares trading hands.

The industrial products company reported $6.16 earnings per share for the quarter, missing the consensus estimate of $6.61 by ($0.45). Deere & Company had a return on equity of 33.58% and a net margin of 12.99%. The business had revenue of $13 billion during the quarter, compared to analysts’ expectations of $12.84 billion. During the same period in the prior year, the business posted $5.32 earnings per share. The business’s quarterly revenue was up 24.8% on a year-over-year basis.

Deere & Company Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 8th. Stockholders of record on Thursday, June 30th were given a $1.13 dividend. The ex-dividend date was Wednesday, June 29th. This is a positive change from Deere & Company’s previous quarterly dividend of $1.05. This represents a $4.52 dividend on an annualized basis and a dividend yield of 1.22%. Deere & Company’s dividend payout ratio is 23.58%.

Analyst Ratings Changes

A number of equities analysts have weighed in on DE shares. Evercore ISI raised Deere & Company from an “in-line” rating to an “outperform” rating and boosted their price objective for the stock from $401.00 to $416.00 in a research note on Thursday, August 11th. Morgan Stanley dropped their price objective on shares of Deere & Company from $452.00 to $416.00 and set an “overweight” rating for the company in a report on Monday, July 18th. Credit Suisse Group set a $393.00 target price on shares of Deere & Company in a research note on Tuesday, July 19th. Cowen dropped their price target on shares of Deere & Company from $396.00 to $342.00 in a research note on Thursday, July 7th. Finally, The Goldman Sachs Group reduced their price target on shares of Deere & Company from $480.00 to $420.00 and set a “buy” rating on the stock in a research report on Monday, May 23rd. Seven investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $398.00.

Insider Transactions at Deere & Company

In other Deere & Company news, insider John H. Stone sold 17,145 shares of the firm’s stock in a transaction that occurred on Thursday, May 26th. The shares were sold at an average price of $4,321.07, for a total value of $74,084,745.15. Following the completion of the transaction, the insider now owns 21,087 shares of the company’s stock, valued at approximately $91,118,403.09. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DE. Northwest Investment Counselors LLC increased its holdings in Deere & Company by 151.5% in the second quarter. Northwest Investment Counselors LLC now owns 83 shares of the industrial products company’s stock valued at $25,000 after buying an additional 50 shares during the last quarter. Sound Income Strategies LLC purchased a new stake in Deere & Company during the second quarter worth approximately $27,000. Worth Asset Management LLC acquired a new position in Deere & Company in the first quarter valued at approximately $28,000. Nauset Wealth Management. LLC purchased a new position in Deere & Company in the first quarter valued at approximately $29,000. Finally, Heritage Financial Services LLC acquired a new stake in Deere & Company during the second quarter worth approximately $29,000. 67.35% of the stock is currently owned by hedge funds and other institutional investors.

Deere & Company Stock Up 0.5 %

The firm’s 50-day moving average price is $324.00 and its two-hundred day moving average price is $364.01. The company has a debt-to-equity ratio of 1.72, a quick ratio of 1.76 and a current ratio of 2.07. The firm has a market cap of $112.98 billion, a PE ratio of 19.28, a P/E/G ratio of 1.24 and a beta of 1.10.

Deere & Company Company Profile

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Deere & Company manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers.

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