AGCO (NYSE:AGCO) Reaches New 52-Week High on Earnings Beat

Key Points

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AGCO Corporation (NYSE:AGCO - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $118.53 and last traded at $117.92, with a volume of 297393 shares changing hands. The stock had previously closed at $106.64.

The industrial products company reported $1.35 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.29. The business had revenue of $2.64 billion during the quarter, compared to analysts' expectations of $2.52 billion. AGCO had a net margin of 0.98% and a return on equity of 8.27%. The company's quarterly revenue was down 18.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.53 earnings per share.

AGCO Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be given a dividend of $0.29 per share. The ex-dividend date is Friday, August 15th. This represents a $1.16 dividend on an annualized basis and a yield of 1.0%. AGCO's payout ratio is presently -14.87%.

AGCO declared that its board has authorized a share repurchase program on Wednesday, July 9th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the industrial products company to repurchase up to 12.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

AGCO has been the topic of a number of recent research reports. JPMorgan Chase & Co. boosted their price target on shares of AGCO from $130.00 to $137.00 and gave the stock an "overweight" rating in a research report on Friday. UBS Group set a $106.00 price target on shares of AGCO in a research report on Tuesday, April 22nd. The Goldman Sachs Group boosted their target price on shares of AGCO from $91.00 to $107.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Oppenheimer boosted their target price on shares of AGCO from $108.00 to $115.00 and gave the company an "outperform" rating in a report on Tuesday, July 15th. Finally, Citigroup reissued a "neutral" rating and issued a $110.00 price target on shares of AGCO in a research note on Friday, May 30th. One analyst has rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, AGCO has an average rating of "Hold" and a consensus price target of $106.67.

Insider Activity at AGCO

In other AGCO news, SVP Kelvin Eugene Bennett sold 250 shares of the stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $106.18, for a total value of $26,545.00. Following the sale, the senior vice president directly owned 17,380 shares of the company's stock, valued at approximately $1,845,408.40. This represents a 1.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 16.60% of the company's stock.

Institutional Investors Weigh In On AGCO

Large investors have recently modified their holdings of the company. Teacher Retirement System of Texas purchased a new stake in AGCO in the first quarter valued at $1,212,000. GAMMA Investing LLC boosted its stake in AGCO by 66.9% during the 1st quarter. GAMMA Investing LLC now owns 908 shares of the industrial products company's stock worth $84,000 after purchasing an additional 364 shares during the period. LPL Financial LLC boosted its stake in AGCO by 4.9% during the 4th quarter. LPL Financial LLC now owns 21,812 shares of the industrial products company's stock worth $2,135,000 after purchasing an additional 1,016 shares during the period. O Shaughnessy Asset Management LLC boosted its stake in AGCO by 2.4% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 6,207 shares of the industrial products company's stock worth $580,000 after purchasing an additional 144 shares during the period. Finally, Envestnet Asset Management Inc. boosted its stake in AGCO by 9.0% during the 1st quarter. Envestnet Asset Management Inc. now owns 99,951 shares of the industrial products company's stock worth $9,252,000 after purchasing an additional 8,293 shares during the period. 78.80% of the stock is owned by hedge funds and other institutional investors.

AGCO Stock Performance

The stock has a market cap of $8.46 billion, a price-to-earnings ratio of 84.64, a PEG ratio of 1.85 and a beta of 1.21. The stock's 50 day moving average is $105.41 and its two-hundred day moving average is $98.69. The company has a current ratio of 1.48, a quick ratio of 0.67 and a debt-to-equity ratio of 0.66.

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.