Westwood Holdings Group Inc. Cuts Stake in AGCO Corporation (NYSE:AGCO)

Key Points

• Westwood Holdings Group Inc. reduced its stake in AGCO Corporation by 12.9%, owning 127,792 shares valued at approximately $11,830,000 after selling 18,921 shares.
• AGCO reported $1.35 earnings per share for the last quarter, exceeding expectations of $1.06, with revenue of $2.64 billion, despite an 18.8% year-over-year decline.
• The company announced a $1 billion share buyback program, indicating that AGCO's leadership believes its stock is undervalued.

Westwood Holdings Group Inc. trimmed its holdings in shares of AGCO Corporation (NYSE:AGCO - Free Report) by 12.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 127,792 shares of the industrial products company's stock after selling 18,921 shares during the period. Westwood Holdings Group Inc. owned about 0.17% of AGCO worth $11,830,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of AGCO. GeoWealth Management LLC purchased a new position in AGCO in the 4th quarter valued at approximately $27,000. Citizens National Bank Trust Department increased its stake in AGCO by 400.0% in the 1st quarter. Citizens National Bank Trust Department now owns 300 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 240 shares in the last quarter. Abound Wealth Management purchased a new position in AGCO during the first quarter worth $56,000. UMB Bank n.a. increased its position in AGCO by 140.7% during the first quarter. UMB Bank n.a. now owns 811 shares of the industrial products company's stock worth $75,000 after buying an additional 474 shares in the last quarter. Finally, GAMMA Investing LLC increased its position in AGCO by 66.9% during the first quarter. GAMMA Investing LLC now owns 908 shares of the industrial products company's stock worth $84,000 after buying an additional 364 shares in the last quarter. 78.80% of the stock is owned by hedge funds and other institutional investors.

AGCO Trading Down 1.8%

AGCO stock traded down $2.04 during midday trading on Friday, reaching $109.72. The stock had a trading volume of 633,791 shares, compared to its average volume of 907,724. AGCO Corporation has a twelve month low of $73.79 and a twelve month high of $121.16. The stock has a market capitalization of $8.19 billion, a PE ratio of 81.88, a price-to-earnings-growth ratio of 1.79 and a beta of 1.21. 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's 50-day simple moving average is $106.60 and its 200 day simple moving average is $99.09.

AGCO (NYSE:AGCO - Get Free Report) last issued its earnings results on Thursday, July 31st. The industrial products company reported $1.35 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.29. AGCO had a return on equity of 8.27% and a net margin of 0.98%. The firm had revenue of $2.64 billion for the quarter, compared to analysts' expectations of $2.52 billion. During the same quarter last year, the firm earned $2.53 earnings per share. The firm's revenue for the quarter was down 18.8% compared to the same quarter last year. Analysts expect that AGCO Corporation will post 4.2 EPS for the current year.

AGCO declared that its board has approved a stock repurchase plan on Wednesday, July 9th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the industrial products company to repurchase up to 12.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

AGCO Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be issued a $0.29 dividend. The ex-dividend date is Friday, August 15th. This represents a $1.16 dividend on an annualized basis and a yield of 1.1%. AGCO's dividend payout ratio (DPR) is presently 86.57%.

Insiders Place Their Bets

In related news, SVP Kelvin Eugene Bennett sold 250 shares of AGCO stock in a transaction on Tuesday, May 13th. The stock was sold at an average price of $106.18, for a total value of $26,545.00. Following the transaction, the senior vice president owned 17,380 shares in the company, valued at approximately $1,845,408.40. This trade represents a 1.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 16.60% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. The Goldman Sachs Group raised their price target on AGCO from $91.00 to $107.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. Citigroup reissued a "neutral" rating and set a $110.00 price target on shares of AGCO in a research report on Friday, May 30th. Wall Street Zen raised AGCO from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. JPMorgan Chase & Co. raised their price target on AGCO from $130.00 to $137.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Oppenheimer raised their price target on AGCO from $108.00 to $115.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 15th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat.com, AGCO has an average rating of "Hold" and an average target price of $108.11.

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.