Deere & Company (NYSE:DE) Trading Down 7% - Time to Sell?

Key Points

• Deere shares fell about 7% in midday trading, dropping from a prior close of $560.46 to around $521, on lighter-than-normal volume.
• Recent earnings were better than expected, with fiscal Q2 EPS of $6.55 and revenue of $13.37 billion both topping estimates, and the company reaffirmed its full-year profit outlook of $4.5 billion to $5.0 billion.
• Key agriculture segments remain under pressure: Production & Precision Agriculture sales fell about 14% year over year and management expects U.S./Canada large-ag industry units to decline 15% to 20% in fiscal 2026, signaling a cautious outlook.

Deere & Company (NYSE:DE - Get Free Report)'s stock price dropped 7% during mid-day trading on Thursday . The company traded as low as $520.13 and last traded at $521.2420. Approximately 456,985 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 1,405,771 shares. The stock had previously closed at $560.46.

Key Stories Impacting Deere & Company

Here are the key news stories impacting Deere & Company this week:

• Positive Sentiment: Deere beat fiscal Q2 estimates with EPS of $6.55 versus expectations around $5.70-$5.81, and revenue of $13.37 billion also came in above forecasts, showing the company can still deliver solid earnings despite a tough ag backdrop.
• Positive Sentiment: Construction & Forestry and Small Ag & Turf helped offset farm weakness, with those segments supporting revenue growth even as core production agriculture remained soft.
• Positive Sentiment: Deere reaffirmed its full-year profit outlook at $4.5 billion to $5.0 billion, which suggests management is not seeing a major near-term collapse in profitability.
• Neutral Sentiment: Tariff-related recovery helped results, including a reported $272 million refund-related item, but that benefit may not recur and does not change the underlying demand picture.
• Neutral Sentiment: Broader macro pressure remains a concern, with headlines pointing to weak farmer economics, rising fertilizer costs tied to geopolitical tension, and a slow recovery in large-ag equipment demand.
• Negative Sentiment: Production & Precision Agriculture sales fell sharply, down about 14% year over year, while operating profit in that segment dropped roughly 39%, reinforcing worries that Deere’s most important cyclical business is still under strain.
• Negative Sentiment: Management’s outlook did not show a strong acceleration in large-ag recovery, with U.S./Canada large-ag industry units expected to fall 15% to 20% in fiscal 2026, keeping sentiment cautious.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DE. Argus upped their price objective on Deere & Company from $540.00 to $700.00 and gave the stock a "buy" rating in a research report on Tuesday, March 3rd. Robert W. Baird reduced their price objective on Deere & Company from $675.00 to $580.00 and set a "neutral" rating for the company in a research report on Thursday, April 2nd. Jefferies Financial Group raised Deere & Company from an "underperform" rating to a "hold" rating and set a $550.00 price objective for the company in a research report on Wednesday, April 8th. Morgan Stanley upped their price objective on Deere & Company from $560.00 to $730.00 and gave the stock an "overweight" rating in a research report on Monday, February 23rd. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $765.00 price objective on shares of Deere & Company in a research report on Monday, February 23rd. Fifteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Deere & Company currently has a consensus rating of "Moderate Buy" and a consensus price target of $655.45.

Deere & Company Stock Down 4.6%

The company has a market capitalization of $144.48 billion, a price-to-earnings ratio of 30.21, a PEG ratio of 1.95 and a beta of 0.96. The company has a debt-to-equity ratio of 1.59, a current ratio of 2.21 and a quick ratio of 1.96. The firm has a 50-day moving average price of $579.04 and a two-hundred day moving average price of $539.38.

Deere & Company (NYSE:DE - Get Free Report) last released its earnings results on Thursday, May 21st. The industrial products company reported $6.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.70 by $0.85. Deere & Company had a return on equity of 18.93% and a net margin of 10.29%.During the same quarter last year, the firm earned $6.64 EPS. The firm's quarterly revenue was up 5.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Deere & Company will post 18.01 earnings per share for the current fiscal year.

Deere & Company Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 8th. Investors of record on Tuesday, March 31st were issued a dividend of $1.62 per share. This represents a $6.48 annualized dividend and a yield of 1.2%. The ex-dividend date was Tuesday, March 31st. Deere & Company's dividend payout ratio is presently 36.53%.

Institutional Trading of Deere & Company

Several institutional investors and hedge funds have recently bought and sold shares of DE. Strategic Advocates LLC bought a new stake in Deere & Company during the third quarter worth about $25,000. Key Capital Management INC bought a new stake in Deere & Company in the fourth quarter valued at approximately $27,000. Timmons Wealth Management LLC bought a new stake in Deere & Company in the fourth quarter valued at approximately $29,000. Activest Wealth Management raised its stake in Deere & Company by 69.2% in the third quarter. Activest Wealth Management now owns 66 shares of the industrial products company's stock valued at $30,000 after buying an additional 27 shares during the period. Finally, McIlrath & Eck LLC bought a new stake in Deere & Company in the fourth quarter valued at approximately $30,000. Institutional investors own 68.58% of the company's stock.

Deere & Company Company Profile

Deere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company's principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.

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