Agco Corp. (AGCO) Downgraded by Zacks Investment Research
Agco Corp. (NYSE:AGCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “AGCO expects weak global demand for farm equipment to hamper its 2016 sales and earnings. Industry demand for farm equipment is likely to weaken in all regions for full-year 2016 compared to 2015, resulting from lower commodity prices and reduced farm income levels. It marginally raised net sales outlook to $7.2 billion for full–year 2016, while maintaining its earnings per share guidance of around $2.30. Gross and operating margins will be below 2015 levels due to the effect of lower sales and production volumes along with a weaker sales mix. Moreover, foreign currency swings will hurt growth.”
Several other research firms have also weighed in on AGCO. Jefferies Group restated a “buy” rating on shares of Agco Corp. in a report on Friday, August 5th. Morgan Stanley set a $54.00 target price on Agco Corp. and gave the stock a “hold” rating in a report on Friday, August 5th. JPMorgan Chase & Co. lowered Agco Corp. from a “neutral” rating to an “underweight” rating and reduced their target price for the stock from $47.00 to $44.00 in a report on Monday, June 27th. Deutsche Bank AG initiated coverage on Agco Corp. in a report on Tuesday, September 6th. They issued a “hold” rating and a $54.00 target price for the company. Finally, Piper Jaffray Cos. reduced their target price on Agco Corp. from $47.00 to $44.00 and set a “neutral” rating for the company in a report on Thursday, August 25th. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating and one has given a buy rating to the company’s stock. Agco Corp. presently has a consensus rating of “Hold” and an average price target of $48.75.
Shares of Agco Corp. (NYSE:AGCO) traded down 0.59% during trading on Tuesday, reaching $49.00. The company had a trading volume of 290,057 shares. Agco Corp. has a 12 month low of $42.40 and a 12 month high of $56.00. The stock has a 50 day moving average price of $47.90 and a 200 day moving average price of $49.78. The firm has a market capitalization of $3.97 billion, a PE ratio of 22.02 and a beta of 1.32.
Agco Corp. (NYSE:AGCO) last announced its quarterly earnings results on Thursday, August 4th. The company reported $1.02 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.92 by $0.10. The business earned $2 billion during the quarter, compared to analyst estimates of $1.88 billion. Agco Corp. had a return on equity of 7.72% and a net margin of 2.58%. The firm’s revenue was down 3.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.25 EPS. On average, equities research analysts forecast that Agco Corp. will post $2.31 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Monday, August 15th were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.05%. The ex-dividend date of this dividend was Thursday, August 11th. Agco Corp.’s dividend payout ratio is presently 23.64%.
Hedge funds have recently made changes to their positions in the stock. Calvert Investment Management Inc. boosted its stake in shares of Agco Corp. by 2.7% in the second quarter. Calvert Investment Management Inc. now owns 5,702 shares of the company’s stock worth $269,000 after buying an additional 148 shares during the period. State Treasurer State of Michigan boosted its stake in shares of Agco Corp. by 0.7% in the second quarter. State Treasurer State of Michigan now owns 28,500 shares of the company’s stock worth $1,343,000 after buying an additional 200 shares during the period. CIBC World Markets Inc. boosted its stake in shares of Agco Corp. by 2.1% in the first quarter. CIBC World Markets Inc. now owns 10,086 shares of the company’s stock worth $501,000 after buying an additional 207 shares during the period. Systematic Financial Management LP boosted its stake in shares of Agco Corp. by 0.8% in the second quarter. Systematic Financial Management LP now owns 33,715 shares of the company’s stock worth $1,588,000 after buying an additional 255 shares during the period. Finally, Amalgamated Bank boosted its stake in shares of Agco Corp. by 3.6% in the second quarter. Amalgamated Bank now owns 9,477 shares of the company’s stock worth $455,000 after buying an additional 332 shares during the period. Hedge funds and other institutional investors own 88.67% of the company’s stock.
Agco Corp. Company Profile
AGCO Corporation is a manufacturer and distributor of agricultural equipment and related replacement parts around the world. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage, implements, and grain storage and protein production systems.
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