Deere & Company (NYSE: DE) witnessed a significant decline in its stock price on September 18, 2023, following a disappointing earnings announcement. The shares, which closed at $498.13 the previous day, opened at $477.13, reflecting a gap down before the market opened. As of the latest trading session, the stock was priced at $481.98, with a trading volume of over 1 million shares.
The industrial products company reported earnings of $3.93 per share for the quarter, missing the consensus estimate of $3.96 by $0.03. Despite this setback, Deere & Company posted a net margin of 11.72% and a return on equity of 21.97%. The firm’s revenue for the quarter reached $12.39 billion, significantly exceeding the market expectation of $9.77 billion. In comparison, the company had earned $4.55 per share during the same quarter the previous year, indicating a year-over-year revenue increase of 14.1%.
Market Analyst Reactions
Following the earnings report, several financial institutions adjusted their outlook on Deere & Company. Oppenheimer revised its price target from $566.00 to $512.00, maintaining an “outperform” rating. Evercore ISI similarly lowered its price target from $491.00 to $487.00. Wells Fargo & Company initiated coverage on the stock with an “overweight” rating, setting a price target of $543.00. Meanwhile, Citigroup reduced its outlook from $525.00 to $515.00, designating a “neutral” rating. DA Davidson also cut its price target from $595.00 to $580.00, while giving a “buy” rating.
Overall, analysts have shown a mixed sentiment towards the stock, with one analyst rating it as a Strong Buy, thirteen assigning a Buy rating, ten giving it a Hold rating, and one a Sell rating. Data from MarketBeat indicates that the average rating stands at “Moderate Buy,” with a consensus price target of $519.85.
Institutional Investors Adjust Holdings
Recent changes in institutional investor holdings have also impacted Deere & Company. Mid American Wealth Advisory Group Inc. acquired a new stake during the second quarter valued at approximately $25,000. Activest Wealth Management increased its holdings by 2,750% in the first quarter, now owning 57 shares valued at $27,000. Moreover, Howard Hughes Medical Institute purchased new shares worth around $27,000, while Wealth Watch Advisors INC and Marshall & Sullivan Inc. also acquired stakes valued at $32,000 and $38,000, respectively. As it stands, institutional investors hold 68.58% of the stock.
Deere & Company’s stock has recently traded down by 2.3%. The company reports a 50-day moving average of $467.28 and a 200-day moving average of $491.09. With a market capitalization of $131.55 billion, the firm maintains a price-to-earnings ratio of 25.30, a PEG ratio of 3.05, and a beta of 1.04. Current liquidity ratios include a quick ratio of 1.98 and a current ratio of 2.19, with a debt-to-equity ratio of 1.76.
Deere & Company, known for its manufacturing and distribution of equipment used in agriculture, construction, forestry, and turf care, operates through various segments including Agriculture and Turf, Construction and Forestry, and Financial Services.
