Alberta Investment Management Corp Reduces Stock Holdings in AGCO Corporation (NYSE:AGCO)

Key Points

• Alberta Investment Management Corp reduced its stake in AGCO Corporation by 49.6%, leaving it with 24,700 shares valued at approximately $2.29 million.
• Analysts have increased their price targets for AGCO, with Goldman Sachs raising their target from $91 to $107, and JPMorgan Chase setting it at $137, while maintaining an overall mixed set of ratings on the stock.
• AGCO announced a $1 billion share buyback program and a quarterly dividend of $0.29, indicating confidence in its stock value amidst recent market fluctuations.

Alberta Investment Management Corp cut its holdings in AGCO Corporation (NYSE:AGCO - Free Report) by 49.6% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 24,700 shares of the industrial products company's stock after selling 24,320 shares during the quarter. Alberta Investment Management Corp's holdings in AGCO were worth $2,286,000 as of its most recent SEC filing.

A number of other large investors have also bought and sold shares of the business. US Bancorp DE grew its holdings in shares of AGCO by 17.7% in the 1st quarter. US Bancorp DE now owns 2,186 shares of the industrial products company's stock valued at $202,000 after acquiring an additional 328 shares in the last quarter. Natixis Advisors LLC grew its stake in shares of AGCO by 1.7% in the first quarter. Natixis Advisors LLC now owns 40,825 shares of the industrial products company's stock valued at $3,779,000 after buying an additional 698 shares in the last quarter. Baader Bank Aktiengesellschaft bought a new stake in AGCO during the first quarter worth $310,000. LPL Financial LLC grew its position in shares of AGCO by 28.4% in the 1st quarter. LPL Financial LLC now owns 27,999 shares of the industrial products company's stock valued at $2,406,000 after acquiring an additional 6,187 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in AGCO by 13.5% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 17,807 shares of the industrial products company's stock valued at $1,648,000 after purchasing an additional 2,115 shares during the last quarter. 78.80% of the stock is owned by institutional investors.

AGCO Trading Down 1.6%

Shares of NYSE:AGCO traded down $1.83 on Thursday, reaching $111.25. 415,916 shares of the company traded hands, compared to its average volume of 880,888. The stock has a market capitalization of $8.30 billion, a P/E ratio of 83.09, a price-to-earnings-growth ratio of 1.78 and a beta of 1.21. AGCO Corporation has a 52 week low of $73.79 and a 52 week high of $121.16. The business's 50-day simple moving average is $106.16 and its 200 day simple moving average is $98.97. The company has a current ratio of 1.48, a quick ratio of 0.67 and a debt-to-equity ratio of 0.66.

AGCO (NYSE:AGCO - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The industrial products company reported $1.35 earnings per share for the quarter, topping 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 analyst estimates of $2.52 billion. During the same period last year, the company earned $2.53 EPS. The business's quarterly revenue was down 18.8% compared to the same quarter last year. As a group, equities analysts anticipate that AGCO Corporation will post 4.2 EPS for the current fiscal year.

AGCO announced that its board has initiated a stock repurchase program on Wednesday, July 9th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the industrial products company to reacquire up to 12.2% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

AGCO Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be given a $0.29 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.16 annualized dividend and a yield of 1.0%. AGCO's dividend payout ratio is 86.57%.

Insider Transactions at AGCO

In other news, SVP Kelvin Eugene Bennett sold 250 shares of the firm'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 sale, the senior vice president owned 17,380 shares of the company's stock, valued at $1,845,408.40. This trade represents a 1.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 16.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. JPMorgan Chase & Co. lifted their target price on AGCO from $130.00 to $137.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Oppenheimer boosted their price objective on shares of AGCO from $108.00 to $115.00 and gave the company an "outperform" rating in a report on Tuesday, July 15th. UBS Group set a $106.00 price target on shares of AGCO in a research report on Tuesday, April 22nd. The Goldman Sachs Group raised their price target on shares of AGCO from $91.00 to $107.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. Finally, Citigroup reaffirmed a "neutral" rating and issued a $110.00 price objective on shares of AGCO in a research note on Friday, May 30th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $106.67.

About AGCO

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.