Diamond Hill Capital Management Inc. Acquires 118,752 Shares of Deere & Company $DE

Key Points

• Diamond Hill Capital Management boosted its Deere & Company stake by 28.1% in the fourth quarter, buying 118,752 additional shares and bringing its total holding to 541,571 shares valued at about $252.1 million.
• Deere reported better-than-expected Q2 results, with earnings per share of $6.55 and revenue of $13.37 billion, while also keeping its full-year profit outlook unchanged.
• Despite the earnings beat, investors remain focused on weak large-agriculture demand, as Production & Precision Ag sales and operating profit fell, signaling pressure in Deere’s core farm equipment business.

Diamond Hill Capital Management Inc. lifted its holdings in shares of Deere & Company (NYSE:DE - Free Report) by 28.1% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 541,571 shares of the industrial products company's stock after purchasing an additional 118,752 shares during the quarter. Deere & Company accounts for 1.3% of Diamond Hill Capital Management Inc.'s holdings, making the stock its 29th largest position. Diamond Hill Capital Management Inc. owned 0.20% of Deere & Company worth $252,139,000 as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in DE. Strategic Advocates LLC bought a new position in shares of Deere & Company during the third quarter worth approximately $25,000. Key Capital Management INC bought a new position in shares of Deere & Company during the fourth quarter worth approximately $27,000. Activest Wealth Management increased its holdings in shares of Deere & Company by 69.2% during the third quarter. Activest Wealth Management now owns 66 shares of the industrial products company's stock worth $30,000 after purchasing an additional 27 shares during the period. McIlrath & Eck LLC bought a new position in shares of Deere & Company during the fourth quarter worth approximately $30,000. Finally, Wealth Watch Advisors INC bought a new position in shares of Deere & Company during the third quarter worth approximately $32,000. 68.58% of the stock is owned by institutional investors.

Deere & Company News Roundup

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

• Positive Sentiment: Deere posted stronger-than-expected Q2 results, with EPS of $6.55 topping estimates and revenue rising 5.4% year over year to $13.37 billion, helped by solid demand in Small Ag & Turf and Construction & Forestry. Deere Shares Fall 4.4% Despite Earnings Beat and Stable Outlook
• Positive Sentiment: The company said it maintained its full-year profit outlook, signaling management confidence despite a tougher farm-cycle backdrop. Deere beats second-quarter profit estimate but maintains full-year forecast
• Neutral Sentiment: Deere’s construction and smaller-equipment businesses continued to offset weakness in core agricultural equipment, keeping overall sales growth positive. Deere Sales Rise as Construction Growth Offsets Agriculture Weakness
• Negative Sentiment: Investors are focusing on weak large-agriculture trends: Production & Precision Ag sales fell sharply and operating profit declined, suggesting the most cyclical part of Deere’s business is still under pressure. Deere shares tumble after weak large-ag outlook overshadows earnings beat
• Negative Sentiment: Management’s unchanged full-year framework and cautious commentary on farm budgets imply a slow recovery for big-ticket equipment demand, which is weighing on the stock. Deere Shares Tumble With Farmers Facing ‘Ongoing Challenges’

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. BMO Capital Markets raised their target price on shares of Deere & Company from $460.00 to $500.00 and gave the stock a "market perform" rating in a report on Friday, February 20th. Bank of America lifted their price objective on shares of Deere & Company from $502.00 to $672.00 and gave the company a "neutral" rating in a research note on Friday, February 20th. Wall Street Zen raised shares of Deere & Company from a "sell" rating to a "hold" rating in a research note on Saturday, February 7th. Raymond James Financial reissued an "outperform" rating and issued a $765.00 price objective on shares of Deere & Company in a research note on Monday, February 23rd. Finally, Argus lifted their price objective on shares of Deere & Company from $540.00 to $700.00 and gave the company a "buy" rating in a research note on Tuesday, March 3rd. Fifteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $655.45.

Deere & Company Stock Performance

Shares of Deere & Company stock opened at $530.84 on Friday. Deere & Company has a fifty-two week low of $433.00 and a fifty-two week high of $674.19. The company has a debt-to-equity ratio of 1.59, a current ratio of 2.21 and a quick ratio of 1.96. The firm has a market capitalization of $143.39 billion, a P/E ratio of 29.92, a P/E/G ratio of 1.96 and a beta of 0.96. The company's 50 day moving average price is $577.80 and its two-hundred day moving average price is $539.87.

Deere & Company (NYSE:DE - Get Free Report) last issued its earnings results on Thursday, May 21st. The industrial products company reported $6.55 earnings per share for the quarter, beating analysts' consensus estimates of $5.70 by $0.85. The firm had revenue of $11.78 billion for the quarter, compared to analyst estimates of $11.55 billion. Deere & Company had a net margin of 10.29% and a return on equity of 18.93%. The company's quarterly revenue was up 5.4% on a year-over-year basis. During the same quarter last year, the business posted $6.64 earnings per share. On average, equities analysts forecast that Deere & Company will post 18.01 earnings per share for the current fiscal year.

Deere & Company Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 8th. Stockholders of record on Tuesday, March 31st were issued a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Tuesday, March 31st. Deere & Company's payout ratio is 36.53%.

Deere & 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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