AGCO Corporation (NYSE:AGCO) Receives Average Rating of "Hold" from Analysts

Key Points

• AGCO Corporation has received a consensus rating of "Hold" from nine research firms, with one sell rating, five hold ratings, and three buy ratings.
• Recent price targets for AGCO shares have varied, with JPMorgan Chase raising it to $137.00, while Goldman Sachs and UBS also updated their targets.
• The company recently announced a $1.00 billion stock buyback plan, indicating confidence from its leadership in undervalued shares.

AGCO Corporation (NYSE:AGCO - Get Free Report) has been assigned a consensus recommendation of "Hold" from the nine research firms that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and three have assigned a buy rating to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $109.6250.

AGCO has been the subject of several research analyst reports. JPMorgan Chase & Co. upped their target price on AGCO from $130.00 to $137.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. The Goldman Sachs Group upped their target price on AGCO from $91.00 to $107.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 27th. Morgan Stanley increased their price objective on AGCO from $75.00 to $84.00 and gave the company an "underweight" rating in a research note on Monday, May 12th. UBS Group reissued a "neutral" rating and issued a $119.00 price objective (up from $100.00) on shares of AGCO in a research note on Friday, August 8th. Finally, Citigroup reissued a "neutral" rating and issued a $110.00 price objective on shares of AGCO in a research note on Friday, May 30th.

AGCO Price Performance

Shares of NYSE AGCO opened at $112.20 on Monday. The business's 50 day moving average price is $107.82 and its 200 day moving average price is $99.24. The firm has a market cap of $8.37 billion, a P/E ratio of 83.73, a P/E/G ratio of 1.76 and a beta of 1.21. AGCO has a 52 week low of $73.79 and a 52 week high of $121.16. The company has a quick ratio of 0.67, a current ratio of 1.48 and a debt-to-equity ratio of 0.66.

AGCO (NYSE:AGCO - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The industrial products company reported $1.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.29. AGCO had a return on equity of 8.27% and a net margin of 0.98%. The company had revenue of $2.64 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same period in the previous year, the company posted $2.53 earnings per share. AGCO's revenue for the quarter was down 18.8% on a year-over-year basis. On average, sell-side analysts expect that AGCO will post 4.2 earnings per share for the current year.

AGCO Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 15th will be issued a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, August 15th. AGCO's dividend payout ratio is presently 86.57%.

AGCO announced that its Board of Directors has initiated a stock buyback plan on Wednesday, July 9th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the industrial products company to repurchase up to 12.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at AGCO

In other news, SVP Luis Fernando Sartini Felli sold 10,000 shares of the stock in a transaction on Monday, August 11th. The stock was sold at an average price of $109.40, for a total transaction of $1,094,000.00. Following the completion of the transaction, the senior vice president directly owned 16,189 shares in the company, valued at approximately $1,771,076.60. This represents a 38.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 16.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AGCO

Hedge funds have recently modified their holdings of the business. GeoWealth Management LLC purchased a new position in AGCO during the 4th quarter valued at about $27,000. Citizens National Bank Trust Department boosted its holdings in AGCO by 400.0% during the 1st quarter. Citizens National Bank Trust Department now owns 300 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 240 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in AGCO by 951.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 284 shares of the industrial products company's stock valued at $29,000 after acquiring an additional 257 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in AGCO during the 1st quarter valued at about $32,000. Finally, Geneos Wealth Management Inc. boosted its stake in shares of AGCO by 109.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 364 shares of the industrial products company's stock valued at $34,000 after buying an additional 190 shares during the period. 78.80% of the stock is currently owned by hedge funds and other institutional investors.

About AGCO

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses.

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