Davis Asset Management L.P. Acquires New Shares in Deere & Company $DE

Key Points

• Davis Asset Management initiated a Deere & Company stake in the second quarter, purchasing 1,943 shares valued at approximately $1.23 million. Institutional investors collectively own 68.58% of the company.
• Deere reported stronger-than-expected quarterly results, with earnings of $5.10 per share and revenue of $12.61 billion, up 6.2% year over year. Management also raised its fiscal 2026 net-income outlook to $4.75 billion-$5.00 billion.
• Construction and forestry demand is supporting growth, while agricultural equipment remains a constraint. Analysts generally maintain a positive view, with a consensus “Moderate Buy” rating and a $643.38 price target, though some cite valuation and a potentially gradual farm-market recovery as risks.

Davis Asset Management L.P. bought a new stake in shares of Deere & Company (NYSE:DE - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 1,943 shares of the industrial products company's stock, valued at approximately $1,232,000.

Other institutional investors have also recently made changes to their positions in the company. Brighton Jones LLC grew its position in shares of Deere & Company by 39.1% in the fourth quarter. Brighton Jones LLC now owns 4,548 shares of the industrial products company's stock valued at $1,927,000 after purchasing an additional 1,278 shares in the last quarter. Schnieders Capital Management LLC. lifted its holdings in Deere & Company by 7.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,076 shares of the industrial products company's stock worth $1,056,000 after purchasing an additional 150 shares in the last quarter. Jump Financial LLC purchased a new stake in Deere & Company during the 2nd quarter worth about $2,153,000. NewEdge Advisors LLC boosted its stake in Deere & Company by 6.0% in the 2nd quarter. NewEdge Advisors LLC now owns 18,758 shares of the industrial products company's stock worth $9,538,000 after purchasing an additional 1,067 shares during the period. Finally, Main Street Financial Solutions LLC boosted its stake in Deere & Company by 6.7% in the 2nd quarter. Main Street Financial Solutions LLC now owns 1,551 shares of the industrial products company's stock worth $789,000 after purchasing an additional 97 shares during the period. Hedge funds and other institutional investors own 68.58% of the company's stock.

Deere & Company News Summary

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

• Positive Sentiment: Q3 earnings and revenue beat expectations. Deere reported earnings of $5.10 per share, up from $4.75 a year earlier, on revenue of $12.61 billion, which rose about 6% year over year and exceeded analyst estimates. Deere Reports Third Quarter Net Income
• Positive Sentiment: Management raised its fiscal 2026 outlook. Deere increased its net-income forecast to $4.75 billion-$5.00 billion and expects $5.0 billion-$5.5 billion in equipment-operations cash flow, improving confidence in profitability and cash generation. Deere Raises FY2026 Outlook
• Positive Sentiment: Construction and forestry provided the key growth engine. Demand for bulldozers, excavators and other earth-moving equipment is largely booked through the rest of the year, supported by data-center and energy-infrastructure construction tied to artificial-intelligence investment. Deere Lifts Sales Guidance
• Positive Sentiment: The agricultural cycle may be nearing a bottom. Executives characterized fiscal 2026 as the likely trough for the agricultural equipment cycle and pointed to improving early order trends and potentially stronger demand in 2027. Deere also recognized $110 million in tariff refunds during the quarter. DE Q3 Earnings Call Highlights
• Neutral Sentiment: Analyst reactions were mixed but generally reflected higher estimates. Robert W. Baird raised its target to $640 and JPMorgan increased its target to $585, while both retained neutral ratings. Other analysts lifted targets as high as $685, indicating expectations have improved but also that valuation and limited near-term upside remain concerns. Deere Analysts Increase Forecasts
• Negative Sentiment: Agriculture remains a constraint. Production and precision agriculture demand is still weak, and Bank of America cautioned that any recovery may be gradual rather than a sharp cyclical rebound. The stock’s elevated valuation could make it vulnerable if farm-market improvement is delayed.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on DE. Oppenheimer upped their price target on Deere & Company from $680.00 to $685.00 and gave the company an "outperform" rating in a research report on Thursday. Royal Bank Of Canada reissued an "outperform" rating and issued a $752.00 price target on shares of Deere & Company in a report on Monday, June 1st. Truist Financial raised their price objective on shares of Deere & Company from $759.00 to $812.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Deere & Company in a research note on Tuesday. Finally, Bank of America decreased their target price on shares of Deere & Company from $672.00 to $607.50 and set a "neutral" rating on the stock in a report on Friday, May 22nd. Fourteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $643.38.

Deere & Company Price Performance

Deere & Company stock opened at $648.61 on Friday. Deere & Company has a 52 week low of $433.00 and a 52 week high of $674.19. The business has a 50-day simple moving average of $606.90 and a 200 day simple moving average of $590.75. The company has a quick ratio of 1.95, a current ratio of 2.10 and a debt-to-equity ratio of 1.45. The stock has a market cap of $175.09 billion, a price-to-earnings ratio of 36.03, a PEG ratio of 2.74 and a beta of 0.90.

Deere & Company (NYSE:DE - Get Free Report) last announced its earnings results on Thursday, August 20th. The industrial products company reported $5.10 earnings per share for the quarter, topping analysts' consensus estimates of $4.69 by $0.41. Deere & Company had a return on equity of 18.10% and a net margin of 10.16%.The business had revenue of $12.61 billion for the quarter, compared to analyst estimates of $10.81 billion. During the same period in the prior year, the company earned $4.75 EPS. The company's quarterly revenue was up 6.2% compared to the same quarter last year. On average, research analysts forecast that Deere & Company will post 18.23 earnings per share for the current fiscal year.

Deere & Company Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Stockholders of record on Tuesday, June 30th were issued a dividend of $1.62 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $6.48 annualized dividend and a dividend yield of 1.0%. Deere & Company's payout ratio is presently 36.00%.

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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