Gabelli Funds Reduces Stake in Deere & Company Amid Market Changes

Gabelli Funds LLC has reduced its investment in Deere & Company (NYSE: DE) by 3.4% during the second quarter of 2023, according to a recent 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 259,022 shares of the agricultural and industrial equipment manufacturer after selling 9,092 shares in the last quarter. Deere & Company constitutes approximately 0.9% of Gabelli Funds LLC’s portfolio, making it the firm’s 16th largest holding. At the end of the quarter, Gabelli’s stake was valued at around $131.71 million.

Several other institutional investors have also adjusted their positions in Deere & Company. Notably, Norges Bank acquired a new stake in the company valued at approximately $1.58 billion during the second quarter. Similarly, Nuveen LLC purchased shares worth $571.07 million in the first quarter. Marshall Wace LLP significantly increased its stake by 573.9%, now owning 842,882 shares valued at $428.60 million after acquiring an additional 717,808 shares. TD Asset Management Inc raised its holdings by 132.0%, now holding 721,638 shares valued at $366.95 million. Collectively, hedge funds and institutional investors own 68.58% of Deere & Company’s stock.

Analysts’ Ratings and Stock Performance

Research analysts have recently weighed in on Deere & Company’s stock. On October 7, Citigroup lowered its price target from $525.00 to $515.00, maintaining a “neutral” rating. In contrast, DA Davidson reiterated a “buy” rating with a price target of $580.00 on December 1. Truist Financial increased its price target from $609.00 to $612.00 while also rating the stock as a “buy.” Overall, the consensus rating for Deere & Company stands at “Moderate Buy” with an average target price of $518.95.

As of the latest trading session, shares of Deere & Company opened at $475.13, reflecting a 1.6% decline. The company boasts a market capitalization of $128.44 billion and a price-to-earnings ratio of 25.67. Over the past year, the stock has fluctuated between a low of $403.01 and a high of $533.78. Deere & Company’s financial health is indicated by a debt-to-equity ratio of 1.68 and a current ratio of 2.22.

Recent Earnings and Dividend Announcement

On November 26, Deere & Company reported its quarterly earnings, revealing an earnings per share (EPS) of $3.93, slightly below the consensus estimate of $3.96. The company posted a revenue of $12.39 billion, significantly exceeding analysts’ expectations of $9.77 billion. This revenue figure represents a 14.1% increase compared to the same quarter the previous year. Analysts forecast that Deere & Company will report an EPS of $19.32 for the current fiscal year.

Additionally, the company declared a quarterly dividend of $1.62, set to be paid on February 9. Investors on record by December 31 will receive this dividend, which translates to an annualized rate of $6.48 and a dividend yield of 1.4%. The payout ratio stands at 35.01%.

In related news, CEO John C. May II sold 11,106 shares of the company on November 25, at an average price of $500.08, totaling approximately $5.55 million. Following this transaction, May retains 112,453 shares valued at around $56.24 million, marking an 8.99% decrease in his ownership.

Deere & Company specializes in manufacturing and distributing equipment for agriculture, construction, forestry, and turf care, operating through segments including Agriculture and Turf, Construction and Forestry, and Financial Services.