Mitsubishi UFJ Asset Management Co. Ltd. Increases Stock Holdings in AGCO Corporation (NYSE:AGCO)

Key Points

• Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in AGCO Corporation by 65.6%, holding 86,019 shares valued at approximately $7.96 million at the end of the first quarter.
• AGCO reported earnings per share of $1.35 for the last quarter, surpassing the consensus estimate of $1.06, despite a revenue decline of 18.8% year-over-year.
• The company initiated a $1 billion share repurchase program, allowing it to buy back up to 12.2% of its shares, indicating the board's belief that the stock is undervalued.

Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of AGCO Corporation (NYSE:AGCO - Free Report) by 65.6% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 86,019 shares of the industrial products company's stock after buying an additional 34,072 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.12% of AGCO worth $7,963,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in AGCO. GeoWealth Management LLC bought a new stake in AGCO in the fourth quarter worth $27,000. Citizens National Bank Trust Department boosted its holdings in AGCO by 400.0% in the first quarter. Citizens National Bank Trust Department now owns 300 shares of the industrial products company's stock worth $28,000 after acquiring an additional 240 shares in the last quarter. Abound Wealth Management bought a new stake in AGCO in the first quarter worth $56,000. UMB Bank n.a. boosted its holdings in AGCO by 140.7% in the first quarter. UMB Bank n.a. now owns 811 shares of the industrial products company's stock worth $75,000 after acquiring an additional 474 shares in the last quarter. Finally, GAMMA Investing LLC boosted its holdings in AGCO by 66.9% in the first quarter. GAMMA Investing LLC now owns 908 shares of the industrial products company's stock worth $84,000 after acquiring an additional 364 shares in the last quarter. 78.80% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, SVP Luis Fernando Sartini Felli sold 10,000 shares of the company's stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $109.40, for a total value of $1,094,000.00. Following the completion of the sale, the senior vice president owned 16,189 shares of the company's stock, valued at approximately $1,771,076.60. This represents a 38.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 16.60% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

AGCO has been the topic of a number of research analyst reports. The Goldman Sachs Group upped their price target on AGCO from $91.00 to $107.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Wall Street Zen upgraded AGCO from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Citigroup reiterated a "neutral" rating and set a $110.00 target price on shares of AGCO in a research report on Friday, May 30th. Oppenheimer increased their target price on AGCO from $108.00 to $115.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 15th. Finally, Morgan Stanley increased their target price on AGCO from $75.00 to $84.00 and gave the stock an "underweight" rating in a research report on Monday, May 12th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $109.63.

AGCO Price Performance

AGCO stock traded up $1.78 during midday trading on Friday, reaching $112.87. 398,536 shares of the stock traded hands, compared to its average volume of 880,388. The stock has a market cap of $8.42 billion, a P/E ratio of 84.28, a PEG ratio of 1.81 and a beta of 1.21. AGCO Corporation has a 12 month low of $73.79 and a 12 month high of $121.16. The stock's fifty day moving average is $107.60 and its 200-day moving average is $99.28. The company has a quick ratio of 0.67, a current ratio of 1.48 and a debt-to-equity ratio of 0.66.

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

AGCO declared that its Board of Directors has initiated a share buyback 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 stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

AGCO Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 15th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, August 15th. AGCO's dividend payout ratio (DPR) is presently 86.57%.

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.