Adecoagro (NYSE:AGRO) Shares Down 3.5% - Here's What Happened

Key Points

• Adecoagro shares fell 3.5% to about $10.87 in thin trading, well below the company’s average daily volume.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, a $12.12 target price, and includes one Buy, four Hold, and two Sell ratings.
• The company’s latest quarter missed expectations, reporting $0.13 in EPS versus $0.54 expected and revenue of $538.5 million versus $602.0 million estimated.

Shares of Adecoagro S.A. (NYSE:AGRO - Get Free Report) were down 3.5% during trading on Tuesday . The company traded as low as $10.82 and last traded at $10.8660. 163,393 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 1,088,024 shares. The stock had previously closed at $11.26.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. JPMorgan Chase & Co. increased their price objective on shares of Adecoagro from $7.00 to $10.50 and gave the stock an "underweight" rating in a research note on Monday, June 15th. Weiss Ratings downgraded shares of Adecoagro from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, July 14th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Adecoagro presently has an average rating of "Reduce" and an average target price of $12.12.

Adecoagro Stock Down 3.1%

The company has a quick ratio of 0.89, a current ratio of 1.73 and a debt-to-equity ratio of 0.84. The firm has a 50 day moving average of $9.87 and a two-hundred day moving average of $11.29. The firm has a market capitalization of $1.56 billion, a price-to-earnings ratio of 33.03 and a beta of -0.04.

Adecoagro (NYSE:AGRO - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.41). Adecoagro had a net margin of 3.03% and a negative return on equity of 0.38%. The company had revenue of $538.50 million during the quarter, compared to analyst estimates of $602.01 million. As a group, sell-side analysts anticipate that Adecoagro S.A. will post 1.42 EPS for the current fiscal year.

Institutional Investors Weigh In On Adecoagro

Several hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. increased its holdings in Adecoagro by 48.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 86,739 shares of the company's stock worth $969,000 after purchasing an additional 28,275 shares in the last quarter. Jane Street Group LLC increased its position in Adecoagro by 20.5% in the 1st quarter. Jane Street Group LLC now owns 189,055 shares of the company's stock valued at $2,112,000 after acquiring an additional 32,169 shares during the period. Invesco Ltd. raised its stake in shares of Adecoagro by 86.5% during the second quarter. Invesco Ltd. now owns 458,693 shares of the company's stock valued at $4,192,000 after acquiring an additional 212,685 shares during the last quarter. Ameriprise Financial Inc. raised its stake in shares of Adecoagro by 32.3% during the second quarter. Ameriprise Financial Inc. now owns 370,391 shares of the company's stock valued at $3,385,000 after acquiring an additional 90,518 shares during the last quarter. Finally, Engineers Gate Manager LP lifted its holdings in shares of Adecoagro by 115.7% during the second quarter. Engineers Gate Manager LP now owns 191,927 shares of the company's stock worth $1,754,000 after purchasing an additional 102,955 shares during the period. Institutional investors and hedge funds own 45.25% of the company's stock.

About Adecoagro

Adecoagro NYSE: AGRO is a leading agricultural and renewable energy company with core operations in South America. Founded in 2002 by Argentine entrepreneur Alejandro Bulgheroni, the company has grown into a vertically integrated platform covering crop production, sugar and ethanol manufacturing, and dairy operations. Adecoagro’s business model spans the full value chain, from seed selection and planting through harvesting, processing and distribution of commodities.

The company manages over 700,000 hectares of farmland across Argentina, Brazil and Uruguay.

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