Adecoagro S.A. (NYSE:AGRO) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Adecoagro received a consensus “Reduce” rating from eight analysts: two sell ratings, five holds and one buy. The average 12-month price target is $11.62.
• The company’s latest quarterly results missed expectations, with earnings per share of $0.13 versus the $0.54 consensus estimate and revenue of $538.5 million versus $602.01 million expected.
• AGRO opened at $10.42, below its 50-day and 200-day moving averages of $10.70 and $11.69, respectively. Institutional investors own 45.25% of the company, with several funds increasing or initiating positions recently.

Adecoagro S.A. (NYSE:AGRO - Get Free Report) has received a consensus recommendation of "Reduce" from the eight analysts that are currently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $11.62.

A number of research firms have recently weighed in on AGRO. Santander initiated coverage on Adecoagro in a research note on Monday, September 14th. They set a "neutral" rating for the company. UBS Group decreased their target price on shares of Adecoagro from $15.20 to $13.20 and set a "buy" rating on the stock in a research note on Thursday, August 27th. Weiss Ratings cut shares of Adecoagro from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, July 14th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Adecoagro from $7.00 to $10.50 and gave the company an "underweight" rating in a research note on Monday, June 15th.

Adecoagro Price Performance

AGRO stock opened at $10.42 on Friday. The firm has a market cap of $1.49 billion, a P/E ratio of 31.56 and a beta of -0.01. The firm's fifty day moving average is $10.70 and its 200 day moving average is $11.69. Adecoagro has a 52 week low of $6.89 and a 52 week high of $15.89. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.89 and a current ratio of 1.73.

Adecoagro (NYSE:AGRO - Get Free Report) last posted its quarterly earnings results on Saturday, August 8th. The company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.41). The business had revenue of $538.50 million during the quarter, compared to the consensus estimate of $602.01 million. Adecoagro had a negative return on equity of 0.38% and a net margin of 3.03%. Research analysts predict that Adecoagro will post 1.42 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd purchased a new position in shares of Adecoagro during the second quarter valued at approximately $438,000. Amundi raised its holdings in shares of Adecoagro by 718.5% during the second quarter. Amundi now owns 782,432 shares of the company's stock valued at $7,472,000 after acquiring an additional 686,835 shares in the last quarter. HighTower Advisors LLC purchased a new stake in Adecoagro in the second quarter worth $168,000. Van ECK Associates Corp lifted its stake in Adecoagro by 57.9% in the second quarter. Van ECK Associates Corp now owns 12,882 shares of the company's stock worth $123,000 after acquiring an additional 4,723 shares during the period. Finally, Comprehensive Money Management Services LLC bought a new stake in Adecoagro in the second quarter valued at $705,000. Institutional investors own 45.25% of the company's stock.

About Adecoagro

Adecoagro SA is an agribusiness company that produces agricultural, dairy and renewable-energy products in South America. Its operations are primarily located in Argentina, Brazil and Uruguay, where it manages farmland and related processing facilities.

The company cultivates crops such as soybeans, corn, wheat, rice, peanuts and cotton. Adecoagro also operates dairy businesses and produces sugar, ethanol and electricity from sugarcane, with cogeneration facilities that use biomass to generate renewable power.

Founded in 2002, Adecoagro has developed an integrated model that combines farming, food processing and renewable-energy production.

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