Stockbridge Partners LLC Invests $359.95 Million in Deere & Company $DE

Key Points

• Stockbridge Partners initiated a $359.95 million Deere stake by purchasing 567,456 shares, representing 7.6% of the fund’s portfolio and 0.21% of Deere’s outstanding stock.
• Deere’s fiscal third-quarter results exceeded expectations, with EPS of $5.10 and revenue of $12.61 billion, up 6.2% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $653.48, with several firms recently raising their targets.
• Investors continue to weigh recovery prospects against risks, including weakness in the agricultural cycle, Deere’s elevated valuation and potential labor tensions after UAW members rejected a proposed contract extension.

Stockbridge Partners LLC bought a new stake in shares of Deere & Company (NYSE:DE - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 567,456 shares of the industrial products company's stock, valued at approximately $359,954,000. Deere & Company accounts for about 7.6% of Stockbridge Partners LLC's holdings, making the stock its 5th largest holding. Stockbridge Partners LLC owned 0.21% of Deere & Company as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Peak Asset Management LLC bought a new stake in Deere & Company in the second quarter valued at $710,000. Fiduciary Financial Advisors bought a new position in Deere & Company in the 2nd quarter worth $329,000. L2 Asset Management LLC bought a new stake in shares of Deere & Company during the 2nd quarter valued at about $1,463,000. Cetera Trust Company N.A bought a new position in Deere & Company in the second quarter worth about $197,000. Finally, Partners Capital Investment Group LLP purchased a new stake in Deere & Company in the second quarter worth about $5,149,000. Hedge funds and other institutional investors own 68.58% of the company's stock.

Wall Street Analysts Forecast Growth

DE has been the topic of a number of research analyst reports. DA Davidson upped their target price on Deere & Company from $685.00 to $760.00 and gave the stock a "buy" rating in a report on Monday. Barclays raised their target price on Deere & Company from $640.00 to $675.00 and gave the company an "overweight" rating in a research note on Monday. Robert W. Baird upped their price target on Deere & Company from $525.00 to $640.00 and gave the stock a "neutral" rating in a research note on Friday. Royal Bank Of Canada reiterated an "outperform" rating and issued a $752.00 price objective on shares of Deere & Company in a report on Monday. Finally, UBS Group lowered their price objective on Deere & Company from $732.00 to $728.00 and set a "buy" rating for the company in a research report on Friday. Fourteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $653.48.

Key Stories Impacting Deere & Company

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

• Positive Sentiment: Analysts raised their outlook. DA Davidson lifted its price target to $760 from $685 and maintained a “buy” rating, while RBC reaffirmed its “outperform” rating with a $752 target. Analysts cited Deere’s better-than-expected fiscal third quarter, improving equipment orders and prospects for an agriculture-sector recovery. DA Davidson analyst action Deere poised for recovery
• Positive Sentiment: Construction and Forestry is providing meaningful growth support. Higher volumes, pricing gains, demand for construction equipment and increased adoption of Deere’s technology are strengthening the segment and could help offset continued weakness or cyclicality in agriculture. Construction and Forestry growth outlook
• Positive Sentiment: Recent earnings exceeded expectations. Deere reported fiscal third-quarter EPS of $5.10 versus the $4.69 consensus, while revenue of $12.61 billion surpassed the $10.81 billion estimate and increased 6.2% year over year. The beat has reinforced the view that Deere is positioned for a recovery, although agriculture remained comparatively weaker. Deere earnings and farm cycle
• Neutral Sentiment: Valuation and the farm cycle remain investor considerations. Deere’s recent rally reflects stronger earnings and recovery expectations, but investors are weighing whether the stock has moved ahead of the underlying agricultural-equipment cycle.
• Negative Sentiment: UAW members rejected Deere’s proposed two-year contract extension. The vote sets up potentially contentious negotiations ahead of the 2027 contract expiration. UAW President Shawn Fain criticized the proposal as an attempt to bypass the normal bargaining process, raising the risk of higher labor costs, operational disruption or an eventual strike. UAW rejects Deere contract extension

Deere & Company Price Performance

Shares of NYSE DE opened at $648.46 on Tuesday. Deere & Company has a fifty-two week low of $433.00 and a fifty-two week high of $674.19. The company has a 50 day simple moving average of $608.35 and a two-hundred day simple moving average of $591.88. The company has a market capitalization of $175.04 billion, a price-to-earnings ratio of 36.03, a P/E/G ratio of 2.74 and a beta of 0.90. The company has a debt-to-equity ratio of 1.45, a quick ratio of 1.89 and a current ratio of 2.10.

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

Deere & Company Announces Dividend

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

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.

Want to see what other hedge funds are holding DE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Deere & Company (NYSE:DE - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source