Adecoagro (NYSE:AGRO) Shares Down 13% - Here's What Happened

Key Points

• Adecoagro shares fell 13% to $7.87 in Thursday’s mid-day trading, with volume 63% below its average.
• The company’s latest reported quarter missed expectations: earnings were $0.13 per share versus $0.54 expected, while revenue was $538.5 million versus $602.01 million forecast.
• Analysts’ consensus rating is “Reduce”, with a $11.62 average price target; ratings include one Buy, five Holds, and two Sells.

Adecoagro S.A. (NYSE:AGRO - Get Free Report) shares dropped 13% during mid-day trading on Thursday. The stock traded as low as $7.95 and last traded at $7.87. 362,231 shares were traded during mid-day trading, a decline of 63% from the average session volume of 975,625 shares. The stock had previously closed at $9.05.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on AGRO. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Adecoagro in a research report on Monday, October 12th. UBS Group decreased their price objective on Adecoagro from $15.20 to $13.20 and set a "buy" rating for the company in a report on Thursday, August 27th. Finally, Santander assumed coverage on Adecoagro in a research note on Monday, September 14th. They issued a "neutral" rating on the stock. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $11.62.

Adecoagro Stock Performance

The company's fifty day moving average is $10.43 and its 200 day moving average is $10.99. The company has a market capitalization of $1.16 billion, a P/E ratio of 24.59 and a beta of 0.01. The company has a current ratio of 1.73, a quick ratio of 0.89 and a debt-to-equity ratio of 0.84.

Adecoagro (NYSE:AGRO - Get Free Report) last released its quarterly earnings data on Saturday, August 8th. The company reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.41). The business had revenue of $538.50 million during the quarter, compared to analysts' expectations of $602.01 million. Adecoagro had a net margin of 3.03% and a negative return on equity of 0.38%. As a group, equities analysts anticipate that Adecoagro S.A. will post 1.11 earnings per share for the current year.

Adecoagro Announces Dividend

The business also recently declared a dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be given a $0.1213 dividend. The ex-dividend date is Thursday, November 5th. This represents a dividend yield of 267.0%. Adecoagro's payout ratio is 72.73%.

Institutional Trading of Adecoagro

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Van ECK Associates Corp lifted its holdings in Adecoagro by 57.9% during the 2nd quarter. Van ECK Associates Corp now owns 12,882 shares of the company's stock worth $123,000 after purchasing an additional 4,723 shares in the last quarter. Lazard Asset Management LLC grew its holdings in Adecoagro by 4.4% during the 1st quarter. Lazard Asset Management LLC now owns 197,265 shares of the company's stock valued at $2,963,000 after buying an additional 8,341 shares in the last quarter. D.A. Davidson & CO. bought a new stake in shares of Adecoagro during the third quarter valued at about $105,000. Hsbc Holdings PLC bought a new stake in shares of Adecoagro during the second quarter valued at about $162,000. Finally, HighTower Advisors LLC purchased a new position in Adecoagro during the second quarter valued at approximately $168,000. 45.25% of the stock is currently owned by institutional investors.

About Adecoagro

Adecoagro is a South American agribusiness company that produces food and renewable energy. Its operations span farming, dairy, rice, and sugar and ethanol production. The company grows crops such as soybeans, corn, and wheat, and produces rice and milk. In Brazil, it processes sugarcane into sugar, ethanol, and renewable electricity. Adecoagro operates in Argentina, Brazil, and Uruguay. Founded in 2002, it combines agricultural production with processing and energy generation across its regional operations.

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