Wall Street Analysts Adjust Ratings for Deere & Company Stock

Deere & Company (NYSE: DE) has experienced a significant shift in investment ratings, with Wall Street Zen downgrading its recommendation from a hold to a sell in a report released on Friday. This decision reflects a broader trend among analysts, as several firms have recently adjusted their target prices and ratings for the agricultural machinery giant.

On the same day, the Royal Bank of Canada reduced its target price for Deere from $542.00 to $541.00, maintaining an “outperform” rating. In a separate report issued on October 20, Zacks Research lowered its rating from a hold to a “strong sell.” Conversely, Truist Financial raised its price objective slightly from $609.00 to $612.00 and reaffirmed a “buy” rating for the stock.

Additionally, Wolfe Research adjusted its target price for Deere’s shares from $550.00 to $520.00 while also maintaining an “outperform” rating. On September 25, Daiwa Capital Markets lowered its price target from $565.00 to $530.00, yet continued to endorse an “outperform” rating. Overall, the stock has received a mix of ratings, with one analyst issuing a strong buy recommendation, fourteen endorsing a buy, nine issuing holds, and one advising a sell.

As per data from MarketBeat, Deere currently holds an average rating of “Moderate Buy” with a consensus price target of $519.45.

Financial Performance and Insider Activity

Deere & Company recently reported its quarterly earnings on November 26. The industrial equipment manufacturer posted earnings per share (EPS) of $3.93, falling short of the consensus estimate of $3.96 by $0.03. The company achieved a return on equity of 21.97% and a net margin of 11.72%. Revenue for the quarter reached $12.39 billion, significantly exceeding the expected $9.77 billion. This marks a 14.1% increase in revenue compared to the same quarter last year, when the firm reported EPS of $4.55. Analysts predict that Deere will post an EPS of 19.32 for the current fiscal year.

In related news, CEO John C. May II sold 11,106 shares of Deere stock on November 25 for an average price of $500.08, totaling approximately $5.55 million. Following this transaction, May holds 112,453 shares, valued at around $56.24 million, representing an 8.99% reduction in his holdings. This transaction was disclosed through a filing with the Securities and Exchange Commission, available on the SEC’s website. Currently, insiders own 0.29% of the company’s stock.

Institutional Investment Trends

Recent modifications by institutional investors have also influenced Deere’s stock dynamics. Vanguard Group Inc. increased its holdings in Deere by 1.4% in the second quarter, now owning 22,372,671 shares valued at approximately $11.38 billion. State Street Corp. also boosted its stake by 0.6%, owning 10,386,268 shares worth around $5.30 billion following an acquisition of 64,262 shares.

Price T. Rowe Associates Inc. raised its holdings by 4.3% during the first quarter, now in possession of 6,876,013 shares valued at $3.23 billion after acquiring an additional 286,253 shares. Furthermore, Capital World Investors increased its position by 5.5% in the third quarter, now holding 6,233,740 shares worth approximately $2.85 billion.

Currently, institutional and hedge fund investors control 68.58% of Deere’s stock, indicating a strong interest in the company as it navigates a complex market landscape.

Deere & Company, recognized for its manufacturing and distribution of agricultural, construction, forestry, and turf care equipment, operates through segments that include Agriculture and Turf, Construction and Forestry, and Financial Services. The company’s adaptability in a competitive market continues to attract attention from analysts and investors alike.