Adecoagro S.A. (NYSE:AGRO) Declares Dividend of $0.12

Key Points

• Adecoagro declared a dividend of $0.1213 per share, payable on May 19 to shareholders of record on May 4 (ex-dividend date May 4).
• The dividend appears sustainable: Adecoagro has a payout ratio of 32.1% and analysts expect $1.16 in EPS next year, implying the company can cover its $0.35 annual dividend with an expected payout ratio near 30%.
• Shares opened at $13.23 and were down about 2.7%; the company has a $1.32 billion market cap, a negative trailing P/E, and a consensus analyst rating of "Hold" with a $11.53 target.

Adecoagro S.A. (NYSE:AGRO - Get Free Report) announced a dividend on Thursday, April 23rd. Investors of record on Monday, May 4th will be given a dividend of 0.1213 per share on Tuesday, May 19th. This represents a dividend yield of 183.0%. The ex-dividend date of this dividend is Monday, May 4th.

Adecoagro has a payout ratio of 32.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Adecoagro to earn $1.16 per share next year, which means the company should continue to be able to cover its $0.35 annual dividend with an expected future payout ratio of 30.2%.

Adecoagro Stock Down 2.7%

AGRO opened at $13.23 on Friday. The firm has a 50 day moving average price of $12.03 and a 200 day moving average price of $9.46. The company has a market cap of $1.32 billion, a PE ratio of -165.35, a price-to-earnings-growth ratio of 0.28 and a beta of 0.08. Adecoagro has a 1 year low of $6.89 and a 1 year high of $15.89. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.82 and a current ratio of 1.38.

Adecoagro (NYSE:AGRO - Get Free Report) last posted its earnings results on Saturday, February 14th. The company reported ($0.15) earnings per share (EPS) for the quarter. The business had revenue of $432.91 million for the quarter. Adecoagro had a negative return on equity of 1.17% and a negative net margin of 0.55%. Sell-side analysts expect that Adecoagro will post 1.38 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on AGRO. Citigroup downgraded shares of Adecoagro from a "buy" rating to a "neutral" rating and increased their target price for the stock from $13.00 to $15.00 in a research report on Tuesday, April 14th. Morgan Stanley raised shares of Adecoagro from an "underweight" rating to an "equal weight" rating and increased their price objective for the company from $9.50 to $13.00 in a research report on Tuesday, March 17th. UBS Group raised shares of Adecoagro from a "neutral" rating to a "buy" rating and increased their price objective for the company from $8.00 to $16.20 in a research report on Monday, March 30th. Zacks Research downgraded shares of Adecoagro from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 9th. Finally, Wall Street Zen raised shares of Adecoagro from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $11.53.

Adecoagro Company Profile

Adecoagro NYSE: AGRO is a leading agricultural and renewable energy company with core operations in South America. Founded in 2002 by Argentine entrepreneur Alejandro Bulgheroni, the company has grown into a vertically integrated platform covering crop production, sugar and ethanol manufacturing, and dairy operations. Adecoagro’s business model spans the full value chain, from seed selection and planting through harvesting, processing and distribution of commodities.

The company manages over 700,000 hectares of farmland across Argentina, Brazil and Uruguay.

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