Deere & Company (NYSE:DE) Shares Gap Down - What's Next?

Key Points

• Deere & Company shares experienced a significant decline, gapping down from a previous close of $513.54 to open at $485.00, and last traded at $480.29 with a trading volume of over 1.14 million shares.
• The company's recent earnings report showed earnings per share of $4.75, surpassing analyst expectations, although revenue was down 9.0% year-over-year.
• Analysts have mixed ratings on Deere & Company, with one "sell," eleven "hold," and eight "buy" ratings, while the average price target is $523.93.

Deere & Company (NYSE:DE - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $513.54, but opened at $485.00. Deere & Company shares last traded at $480.29, with a volume of 1,141,399 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on DE shares. Wall Street Zen lowered Deere & Company from a "hold" rating to a "sell" rating in a report on Friday, May 30th. DA Davidson reaffirmed a "buy" rating and issued a $542.00 price target on shares of Deere & Company in a report on Friday, May 16th. Bank of America raised their price target on Deere & Company from $495.00 to $556.00 and gave the stock a "neutral" rating in a report on Friday, May 16th. Oppenheimer raised their price target on Deere & Company from $555.00 to $560.00 and gave the stock an "outperform" rating in a report on Tuesday, July 15th. Finally, Raymond James Financial raised their price target on Deere & Company from $530.00 to $560.00 and gave the stock an "outperform" rating in a report on Friday, May 16th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $523.93.

Deere & Company Stock Down 8.2%

The stock has a 50-day simple moving average of $512.41 and a two-hundred day simple moving average of $489.86. The company has a quick ratio of 1.89, a current ratio of 2.11 and a debt-to-equity ratio of 1.76. The firm has a market cap of $127.69 billion, a PE ratio of 22.78, a P/E/G ratio of 3.21 and a beta of 1.06.

Deere & Company (NYSE:DE - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The industrial products company reported $4.75 earnings per share for the quarter, beating analysts' consensus estimates of $4.62 by $0.13. Deere & Company had a return on equity of 24.39% and a net margin of 12.40%. The business had revenue of $10.36 billion for the quarter, compared to the consensus estimate of $10.33 billion. During the same quarter last year, the business posted $6.29 earnings per share. The company's revenue for the quarter was down 9.0% on a year-over-year basis. Analysts expect that Deere & Company will post 19.32 earnings per share for the current year.

Deere & Company Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 8th. Stockholders of record on Monday, June 30th were issued a $1.62 dividend. The ex-dividend date was Monday, June 30th. This represents a $6.48 annualized dividend and a dividend yield of 1.4%. Deere & Company's payout ratio is currently 31.35%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Mid American Wealth Advisory Group Inc. purchased a new position in shares of Deere & Company in the second quarter worth about $25,000. Activest Wealth Management increased its holdings in shares of Deere & Company by 2,750.0% in the first quarter. Activest Wealth Management now owns 57 shares of the industrial products company's stock worth $27,000 after buying an additional 55 shares during the period. Howard Hughes Medical Institute purchased a new position in shares of Deere & Company in the second quarter worth about $27,000. Hughes Financial Services LLC bought a new stake in shares of Deere & Company in the first quarter worth about $29,000. Finally, Cornerstone Planning Group LLC grew its stake in shares of Deere & Company by 116.1% in the first quarter. Cornerstone Planning Group LLC now owns 67 shares of the industrial products company's stock worth $31,000 after purchasing an additional 36 shares during the last quarter. Hedge funds and other institutional investors own 68.58% of the company's stock.

Deere & Company Company Profile

Deere & Co engages in the manufacture and distribution of equipment used in agriculture, construction, forestry, and turf care. It operates through the following segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agriculture and Turf segment focuses on the distribution and manufacture of a full line of agriculture and turf equipment and related service parts.

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