AGCO (NYSE:AGCO) Raised to "Strong-Buy" at Zacks Research

Key Points

• AGCO has been upgraded by Zacks Research from a "hold" to a "strong-buy" rating, indicating increased investor confidence.
• Several investment firms have raised their price targets for AGCO, with JPMorgan Chase increasing it to $137.00, signaling potential growth in stock value.
• AGCO reported better-than-expected earnings in its last quarter, with $1.35 EPS surpassing analyst estimates of $1.06, although revenue still experienced an 18.8% decline year-over-year.

Zacks Research upgraded shares of AGCO (NYSE:AGCO - Free Report) from a hold rating to a strong-buy rating in a research report report published on Monday, August 18th,Zacks.com reports. Zacks Research also issued estimates for AGCO's Q3 2025 earnings at $1.17 EPS, Q4 2025 earnings at $1.82 EPS, Q1 2026 earnings at $0.94 EPS, Q3 2026 earnings at $1.53 EPS and Q1 2027 earnings at $1.53 EPS.

AGCO has been the topic of several other reports. Morgan Stanley raised their target price on AGCO from $75.00 to $84.00 and gave the stock an "underweight" rating in a research note on Monday, May 12th. Oppenheimer lifted their price objective on AGCO from $108.00 to $115.00 and gave the company an "outperform" rating in a research report on Tuesday, July 15th. UBS Group reaffirmed a "neutral" rating and set a $119.00 price objective (up from $100.00) on shares of AGCO in a research report on Friday, August 8th. The Goldman Sachs Group lifted their price objective on AGCO from $91.00 to $107.00 and gave the company a "neutral" rating in a research report on Tuesday, May 27th. Finally, Citigroup reaffirmed a "neutral" rating and set a $110.00 price objective on shares of AGCO in a research report on Friday, May 30th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $109.63.

AGCO Trading Down 0.7%

Shares of NYSE AGCO traded down $0.7950 during trading hours on Monday, hitting $115.9550. The company's stock had a trading volume of 104,862 shares, compared to its average volume of 867,007. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.67 and a current ratio of 1.48. The stock has a market cap of $8.65 billion, a price-to-earnings ratio of 86.53, a P/E/G ratio of 1.84 and a beta of 1.21. AGCO has a 12 month low of $73.79 and a 12 month high of $121.16. The business has a 50-day simple moving average of $108.98 and a 200-day simple moving average of $99.65.

AGCO (NYSE:AGCO - Get Free Report) last posted its earnings results on Thursday, July 31st. The industrial products company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.29. The company had revenue of $2.64 billion for the quarter, compared to analysts' expectations of $2.52 billion. AGCO had a return on equity of 8.27% and a net margin of 0.98%.AGCO's quarterly revenue was down 18.8% on a year-over-year basis. During the same period last year, the firm earned $2.53 earnings per share. AGCO has set its FY 2025 guidance at 4.750-5.00 EPS. On average, analysts anticipate that AGCO will post 4.2 earnings per share for the current fiscal year.

AGCO Dividend Announcement

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 paid 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 currently 86.57%.

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

Insiders Place Their Bets

In other AGCO news, SVP Luis Fernando Sartini Felli sold 10,000 shares of the business's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $109.40, for a total transaction of $1,094,000.00. Following the completion of the sale, the senior vice president directly owned 16,189 shares in the company, valued at approximately $1,771,076.60. The trade was a 38.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 16.90% of the company's stock.

Institutional Investors Weigh In On AGCO

Hedge funds have recently added to or reduced their stakes in the stock. Teacher Retirement System of Texas purchased a new stake in AGCO during the 1st quarter valued at $1,212,000. GAMMA Investing LLC grew its position in shares of AGCO by 66.9% during the 1st quarter. GAMMA Investing LLC now owns 908 shares of the industrial products company's stock valued at $84,000 after acquiring an additional 364 shares during the period. Envestnet Asset Management Inc. grew its position in shares of AGCO by 9.0% during the 1st quarter. Envestnet Asset Management Inc. now owns 99,951 shares of the industrial products company's stock valued at $9,252,000 after acquiring an additional 8,293 shares during the period. Baker Ellis Asset Management LLC grew its position in shares of AGCO by 9.0% during the 1st quarter. Baker Ellis Asset Management LLC now owns 29,934 shares of the industrial products company's stock valued at $2,771,000 after acquiring an additional 2,480 shares during the period. Finally, UMB Bank n.a. grew its position in shares of AGCO by 140.7% during the 1st quarter. UMB Bank n.a. now owns 811 shares of the industrial products company's stock valued at $75,000 after acquiring an additional 474 shares during the period. 78.80% of the stock is currently owned by hedge funds and other institutional investors.

AGCO Company Profile

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.