Ag Growth International (TSE:AFN) Shares Up 17.9% - Here's Why

Key Points

• Ag Growth International shares jumped 17.9% to C$10.28, reaching as high as C$11.00, while trading volume rose 111% above the average session level.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from nine analysts, although the consensus price target is C$21.89. Several brokerages recently cut their price targets and ratings.
• The company reported a quarterly loss of C$2.06 per share, negative net margins and a debt-to-equity ratio of 541.43%, highlighting significant financial pressure. Director Gary Keith Anderson nevertheless bought nearly 21,865 shares worth about C$300,000.

Ag Growth International Inc. (TSE:AFN - Get Free Report)'s share price was up 17.9% during trading on Wednesday. The stock traded as high as C$11.00 and last traded at C$10.28. Approximately 313,568 shares changed hands during trading, an increase of 111% from the average session volume of 148,339 shares. The stock had previously closed at C$8.72.

Analyst Ratings Changes

A number of brokerages have weighed in on AFN. ATB Cormark Capital Markets reduced their price target on Ag Growth International from C$18.00 to C$11.00 and set a "sector perform" rating for the company in a research report on Thursday, October 1st. National Bank Financial lowered their price objective on Ag Growth International from C$19.00 to C$11.00 and set a "sector perform" rating on the stock in a report on Thursday, October 15th. Desjardins cut their price objective on Ag Growth International from C$25.00 to C$20.00 and set a "buy" rating on the stock in a research note on Friday, July 31st. TD Securities lowered Ag Growth International from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Finally, Royal Bank Of Canada decreased their target price on Ag Growth International from C$30.00 to C$20.00 and set an "outperform" rating for the company in a research report on Friday, July 31st. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of C$21.89.

Ag Growth International Stock Up 16.6%

The stock has a market cap of C$192.01 million, a P/E ratio of -1.63, a P/E/G ratio of 1.30 and a beta of 1.56. The company has a current ratio of 1.30, a quick ratio of 0.84 and a debt-to-equity ratio of 541.43. The firm's fifty day moving average is C$10.75 and its 200 day moving average is C$19.58.

Ag Growth International (TSE:AFN - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported C($2.06) earnings per share (EPS) for the quarter. The firm had revenue of C$323.18 million for the quarter. Ag Growth International had a negative net margin of 8.43% and a negative return on equity of 48.31%. As a group, equities research analysts forecast that Ag Growth International Inc. will post 6.58 EPS for the current year.

Insiders Place Their Bets

In other Ag Growth International news, Director Gary Keith Anderson bought 21,865 shares of the stock in a transaction on Friday, July 31st. The shares were purchased at an average price of C$13.72 per share, with a total value of C$299,987.80. Following the acquisition, the director directly owned 106,990 shares of the company's stock, valued at C$1,467,902.80. This represents a 25.69% increase in their position. 1.06% of the stock is currently owned by insiders.

About Ag Growth International

Ag Growth International Inc is a leading manufacturer and supplier of equipment and solutions for the agriculture, fertilizer, feed, food and commercial sectors. With manufacturing facilities and operations on six continents, AGI provides complete systems and services that support producers and processors throughout the agricultural value chain.

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