AGCO Corporation (NYSE:AGCO) Shares Bought by Davis Selected Advisers

Key Points

• Davis Selected Advisers has increased its stake in AGCO Corporation by 1.8%, owning approximately 2.72% of the company's stock valued at around $187.6 million.
• AGCO recently announced a quarterly dividend of $0.29 per share and a share buyback program authorizing up to $1 billion in repurchases, indicating management's belief that the stock is undervalued.
• AGCO reported earnings of $1.35 per share for the last quarter, surpassing estimates, with revenue of $2.64 billion, though it was down 18.8% compared to the previous year.

Davis Selected Advisers lifted its position in shares of AGCO Corporation (NYSE:AGCO - Free Report) by 1.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,027,266 shares of the industrial products company's stock after purchasing an additional 35,909 shares during the period. AGCO comprises approximately 1.1% of Davis Selected Advisers' portfolio, making the stock its 24th largest position. Davis Selected Advisers owned approximately 2.72% of AGCO worth $187,664,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its position in shares of AGCO by 128.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,504,328 shares of the industrial products company's stock worth $608,026,000 after purchasing an additional 3,654,350 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of AGCO by 9.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,984,081 shares of the industrial products company's stock worth $278,951,000 after purchasing an additional 258,054 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of AGCO by 534.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,901,790 shares of the industrial products company's stock worth $271,259,000 after purchasing an additional 2,444,615 shares during the last quarter. Fuller & Thaler Asset Management Inc. lifted its position in shares of AGCO by 1.5% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,744,133 shares of the industrial products company's stock worth $256,522,000 after purchasing an additional 39,966 shares during the last quarter. Finally, Invesco Ltd. lifted its position in shares of AGCO by 68.7% during the 4th quarter. Invesco Ltd. now owns 2,360,301 shares of the industrial products company's stock worth $220,641,000 after purchasing an additional 961,081 shares during the last quarter. 78.80% of the stock is owned by hedge funds and other institutional investors.

AGCO Stock Performance

NYSE AGCO traded down $2.04 during trading on Friday, reaching $109.72. The company's stock had a trading volume of 633,791 shares, compared to its average volume of 907,724. 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 firm has a market cap of $8.19 billion, a price-to-earnings ratio of 81.88, a P/E/G ratio of 1.76 and a beta of 1.21. AGCO Corporation has a twelve month low of $73.79 and a twelve month high of $121.16. The business's fifty day moving average price is $106.60 and its 200-day moving average price is $99.06.

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

AGCO declared that its Board of Directors has initiated a share repurchase program on Wednesday, July 9th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the industrial products company to purchase up to 12.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

AGCO Dividend Announcement

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

Insider Activity

In other news, SVP Kelvin Eugene Bennett sold 250 shares of the business's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $106.18, for a total transaction of $26,545.00. Following the transaction, the senior vice president directly owned 17,380 shares in the company, valued at $1,845,408.40. The trade was a 1.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 16.60% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AGCO. Oppenheimer lifted their price objective on shares of AGCO from $108.00 to $115.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 15th. UBS Group reissued a "neutral" rating and issued a $119.00 price target (up from $100.00) on shares of AGCO in a research report on Friday. Citigroup reissued a "neutral" rating and issued a $110.00 price target on shares of AGCO in a research report on Friday, May 30th. JPMorgan Chase & Co. boosted their price target on shares of AGCO from $130.00 to $137.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Morgan Stanley boosted their price target on shares of AGCO from $75.00 to $84.00 and gave the company an "underweight" rating in a research report on Monday, May 12th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat, AGCO presently has an average rating of "Hold" and an average price target of $108.11.

AGCO 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.